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

To: philv who wrote (13141)	6/14/1998 5:31:00 PM
From: ahhaha	Respond to of 116805

When you squander something, you don't get nothing in return. You get mental satisfaction or some such abstract thing and there always is a residue of leftover from it. Usually the residue is something you have to clean up. The BOJ can't print T-paper. To get it requires resources and labor exchanged. They can print yen at a cost of almost no labor or resource. They have piles of paper with a guy smiling in glasses with a top hat on the pieces laying around in their vault. There is no yield on it. They could factor it surreptitiously into the foreign currency market like drug dealers, but soon the market would know what was going on and the paper would quickly be returned to its valueless vault state. All yen everywhere would gain that status too. The Japanese have traded their hard work and invention for a claim on future work and invention of other peoples. They exchanged $21 billion of claims for a potful of paper beans. Esau got more. It is difficult to put the yen paper into foreign hands so that it stays there. Who wants a wasting asset? That wouldn't be the case if America got competitive. Then the yen is highly sought. The vault cash suddenly is in vogue. Under the present regime the $21 billion is effectively lost because it can't be used. It just sits in vaults. Anyone's $21 billion is useless unless it is used. I don't mean to be rhetorical; the nature of depression, liquidity trap, is that money sits in vaults. Though the rate of interest is .5%, no one wants to borrow. They don't want to borrow because of fear of inability to return the principal or because there isn't anything to buy with it, etc. You tell me. Would you rather have a load of US T-paper, a claim on the potential of America, or would you prefer a claim on the potential of the mighty Empire of Japan? Always a claim on future income streams is superior to wasting assets and it's anyone's guess as to where the superior stream lies. So it is my guess that the money was squandered.