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

To: PaulM who wrote (13140)	6/14/1998 5:00:00 PM
From: ahhaha	Read Replies (1) \| Respond to of 116805

A lot of what he is saying is based on capital flow effect on economy. In my various recent comments I have emphasized that capital flows from one entity to another don't have much consequence. It depends upon the attitude of societies and the laws they pass to properly allocate or misallocate the capital. If the yen is appreciating when investment funds in Japan are open to international investment, what is the advantage in putting the money into foreign currency denominated assets? Negative advantage. Those investment funds in that regime would keep the dough in Japan. Further, if we're striking for higher wages and thus are inducing inflationary expectations, why would anyone want to factor funds into the dollar? His view requires at least a ceteris paribus if not a continuing collapse in the yen and the reversal of the attitude to strike here. During times of wealth you aren't going to see unions back off. Where has he been living these decades? I suspect that after 20 years just like FED officials, he has lost the belief that monopoly labor brings the careful orchestration to a close and shuts down the party. Everything he's saying will be knocked into a cocked hat, if the yen reverses due to BOJ pumping and the BOJ has no recourse but to pump. Even if the BOJ can hold out and capital massively moves on-shore to avoid international problems, long before that even got off the runway, the foreigners would implement policies to reverse it. The tenacity of their competitive nature would cause the flows to massively exit the dollar. How good does his bond play look then? The trend for 30 years has been the foreigners out compete us. That is the cutting edge. Everything else is academic dreamland invention. What counts in life is what anyone is willing to do and at what price, not what anyone has and who sets its price.