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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: derek cao who wrote (23671)	8/31/1998 4:42:00 PM
From: Katherine Derbyshire	Read Replies (1) \| Respond to of 70976

>> Re: At least in Japan, a large chunk of personal savings is in the postal savings system, which I think buys Japanese government bonds. Where do you think the Japanese government bonds used on?<< Financing the huge Japanese budget deficit, for starters. >>Re: Another large chunk is in the US markets, especially Treasuries. Who do you think continue to finance the US trade deficit? Do you think this can continue forever?<< The US deficits are irrelevant. My point was that the Japanese savings aren't building the Japanese infrastructure. Which, if they're in US Treasuries, they are not. >>Re: If our prosperity depends on the Japanese consumer's lust for overpriced American goods, we are in deep trouble. Unfortunately, we are in global economy. As long as you have trade, everyone is connected somehow.<< You clearly are incapable of detecting sarcasm. I was agreeing with you. >> Katherine, your response is very disappointing. Looking forward better ones.<< I don't answer to you. Get over it. Katherine

To: derek cao who wrote (23671)	8/31/1998 5:16:00 PM
From: Barry	Read Replies (2) \| Respond to of 70976

Derek, Savings do NOT lead to overcapacity. Savings control or mitigate the growth in an economy. Excess CREDIT has created this overpowering supply situation, and great human technological achievements have created this abundance of supply relative to demand, as well. The great savings rate is somewhat of a mirage; a lot of the $ given to nations around the world are kept in a very, few concentrated hands--usually by those in political or military power. Your assessment of the situation, imho, is totally wrong. There is nothing wrong with deflation; in fact, in the long long long run, there will be no need for money. Short term, there's pain, especially for those not in cash. And in this short term, cash is king. Spending will not solve this problem. Only pain will do the job, the pain from the reduction of excess supply in the marketplace. barry