Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Jay Scott who wrote (6547)	9/21/1998 4:03:00 PM
From: Henry Volquardsen	Respond to of 9980

Jay, Actually I believe that eventually they need to denominate their debt in local currency and freely float the currencies. This will force the market to fully recognize and price risk appropriately. Demographics is a very interesting area of discussion. On the surface that would appear to be a problem for the US. We have all heard the analysis of the impact on Social Security and medical costs of our aging population. And it will be a problem but it will be mitigated by the US's propensity and willingness to accept immigrants. These immigrants tend to be younger and adding to the economy. Contrast this to the demographic nightmare facing Japan. They are already one of the oldest populations on the planet with a very low birthrate and are perhaps the least accomodating to immigration of any major economy. It is the fear of this demographic tidal wave which has made the Japanese very reluctant to spend any tax cuts knowing they will need it in the future. Re wean the emerging markets off of dollar debt...there is no time like the present. Unfortunately I don't believe policymakers are going to encourage that. Henry