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Politics : Dutch Central Bank Sale Announcement Imminent? -- Ignore unavailable to you. Want to Upgrade?


To: IngotWeTrust who wrote (3518)2/18/1999 6:40:00 AM
From: ForYourEyesOnly  Read Replies (1) | Respond to of 81961
 
Interesting....perhaps the US has been in "stealth inflation"....all of the excess money has gone into the stock market.....

Perhaps one day inflation will explode out of no where?

Sleep tight!

THC



To: IngotWeTrust who wrote (3518)2/18/1999 7:57:00 AM
From: Hawkmoon  Respond to of 81961
 
Supply of money = increasing

As long as all that new yen doesn't chase too few goods, how is your future any different than the endless stockmarket bull we've had? You'll have asset inflation, the kind that will make everyone extremely rich that picks the right stocks and the timing...and you'll do it instantly, via the internet...


Possibly the psychological effect alone, of knowing that goods sold in Japan will now be going up in price may spur greater consumer demand.

People don't like to buy things when they can feel relatively assured prices will be cheaper in the next couple of months. Secondly, foreign goods will be more expensive and spur greater consumption of solely domestic produced goods.

The problem will be in forcing Japanese corporations to adopt a profit motivated style, rather than a one where they care only about increasing market share. Without that, overproduction will only lead them back to the same place they are now.

Asset inflation of a moderate degree permits risk taking by business and consumers. It basically screws the Banks and depositors since it now makes more sense to borrow money to buy things and pay back that debt at a future date in inflated, weaker currency.

Btw, Elliot almost always gets the girl. Go figure given his ugly mug!! Must be his masculine sensitivity.

Regards,

Ron