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Strategies & Market Trends : JAPAN-Nikkei-Time to go back up? -- Ignore unavailable to you. Want to Upgrade?

To: chirodoc who wrote (929)	4/22/1998 1:25:00 PM
From: ahhaha	Respond to of 3902

In terms of what? The price of goods in Japan in yen are declining. That means that the people of Japan can buy more stuff. Is that bad? The poorer classes finally get some relief and so everyone has to find some reason why that is bad! The only issue is if the prices plummet so much that industrial production collapses causing major unemployment so they can't get any money. Not likely to occur because the rest of the world is booming and the last I heard the US hasn't unilaterally barred trade with Japan. If the people of Japan go out on strike, then you have a situation where industrial production could collapse. The BOJ can always fiat it's way out of such a collapse. The ultimate issue is if a central bank creates money but no one wants to borrow it, then you have a tangible problem. You can't make people eat. They may decide it is more important to starve than to buy more stuff. It's a problem that never occurs because the Japanese aren't that disciplined and the possibility of scarcity still exists on this planet. We haven't developed Replicator technology yet.