Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: Terry Rose who wrote (8445)	3/18/1998 4:44:00 AM
From: Zardoz	Read Replies (3) \| Respond to of 116768

"Alex, Japan has only two options that I can come up with to defend their currency. 1. Sell other currency assets and buy their yen (not print it} 2. Raise their short term interest rates. These idle threats are getting old and pointless. If the bond market goes back to 6%, they are going with option #1." What about Option: The BEST Option. {screw the currency} 3. Let the system fail, allow the banks to fail, force credit recall. Cause the market to fall to correct levels around 11000 for Japan. Sell off the Bonds, rebuild the system under GAAP rules. Forclose on Bankrupt banks, merge asset, pay out the defunct bank accounts. Allow greater foreign ownership. Causing a rate rike to 4% in Japan. Print more money {as if they can print enough now} Sell All foriegn bonds... You'd see the Yen go to 160 Yen/USD {Believe it or not this is a FAIR value} But the Japan economy would be better! If the 2.2% drop in Japan hasn't told the government anything yet, than they aren't listening... Any smart hedge fund, is surely playing off this crap that the inner circle of Japan in-breed government is feeding the people. And we complain about mofia mentality on the US street. In United States, which has floated the markets and growth on the back of M2 money flow at an inflation rate unseen before, people are being lead into a FALSE sense of market capitalism. Even in Greenspan own comments about inflation and the markets, he said {pharaphrase}: '...one need only look at the M2 money supply to see where the economy is going...'. Is it any wonder why Buffet is selling stocks, and buying commodities. The US dollar is over valued {Relative to everything} You may well believe that commodities are cheap {and relative to the US dollar they are} But with an inflated dollar, you get cyclial deflation, Startin with commodities, than products, than services, than markets. Too strong a dollar undermines other countries economics faster than the driving economy. First sign is the Asian problems. Second sign is the rising unemployment in Europe. Soon the US markets will be in just a big a bubble as Japan built.