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

To: Zeev Hed who wrote (3632)	5/16/1998 5:41:00 PM
From: Frodo Baxter	Read Replies (2) \| Respond to of 9980

>This was the reason that I (arrogantly <G>) urged the Japanese government to engage in drastic and massive internal consumption growth. How? Keynesian fiscal stimulus? Loosy-goosy monetary policy? Supply-side tax cuts? I can't see how they can be constructively stimulative other than to inflate, inflate, inflate. Give everybody a year off on taxes (call it a rebate for their years of suffering) and finance the government by printing more money. Will the yen weaken? Hell yes. So? >They are the only one in that region that have the money statched away to do it. You'll have to help me out on this. Has all this discretionary money effectively taken out of circulation been locked up in savings accounts or in mattresses? If the former, net outflow out of "asset-free" banks is a tad, um, disturbing. >There is only so much of this export that the US can absorb before it itself will choke on its negative balance of trade. You're kidding right? The fact that our strongest export is greenbacks is a sign of strength, not weakness.