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.

Strategies & Market Trends : Asia Forum -- Ignore unavailable to you. Want to Upgrade?

To: Tommaso who wrote (2890)	4/4/1998 11:47:00 AM
From: Stitch	Read Replies (2) \| Respond to of 9980

Tommaso, I believe I read somewhere that a very popular form of savings in Japan has to do with "postal bonds". Do you know, if I am remembering this correctly, what they are and how liquid they are? Would the recent government stock buying have made an impact on the liquidity? TIA, Stitch

To: Tommaso who wrote (2890)	4/5/1998 2:34:00 PM
From: Worswick	Respond to of 9980

Tommaso... to try and answer some part of your long post. I believe that "the savings of Japan" are probably in the same kind of savingds we have here in the US with the addition of the Postal Savings pool of money in Japan. Taking into account your ideas about the rise of US bond yields, the rise of currencies... with tis massive financial input.. I believe what you should look to is a comprable historical situation to what we now face. Massive financial inflows. The only comoprable situation I can think of was Switzerland in the early 1970's when so much money came into Switzerland that there were, in fact, negative interest charges on momney coming in for deposit. That's right. You paid the Swiss bankers .005%-.01% to take your money. Faced with such inflows the dollar would get stronger... the yen weaker. Bond prices here would drop below 5% and on down... The market would soar. Gold Riddle: what happens when ever central bank in the world hates something and wants it to go away? Answer: it goes away. To keep alive and sprightly in the modern world governments print money. If all the commerce in the world was carried on by gold as the medium of exchange with the worl'ds limitied supply of gold how much would gold be an ounce. $75,000. - $100,000? At that government's don't print gold so they would be against the idea of a gold standard. AT the moment the US and Japan are printing madly - more exactly - adding to Fed Credit. Do you see Alan Greensp... out there on the heap leach field wondering about environmental damage on the Carlin trend and hoping he could get the Fed Credit up this week? You wrote: "In any case, the release of as little as fifty billion dollars worth of Yen for investment in the U. S. stock market (this) could push that market on up even further". So. Think of 20X to 60X more. We are talking big money here already. Acknowledged but damaged Japanese bank credits equal at $600 billion... 2X the size of the entire Chinese economy. Some say the damaged credits equal 20% of the entire Japanese economy...what is the GNP of Japan? At any rate whatever the truth is here... we are living in interesting times never seen before.