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Strategies & Market Trends : Currencies and the Global Capital Markets -- Ignore unavailable to you. Want to Upgrade?

To: Sam who wrote (1655)	5/21/1999 4:31:00 PM
From: Freedom Fighter	Respond to of 3536

Sam, >>Why would that be a winning long term strategy?<< That was part of my point too. Japan is in the shape it is in partly because of unlimited credit creation back in the 80s. That credit mostly flowed into real estate and stocks so CPI inflation remained low. That allowed an enormous bubble to form that would never have happened except for unbacked fiat credit. In order to avoid a complete disaster they then tried to reflate. Much of the credit and savings then flowed elsewhere and created more bubbles around Asia that eventually blew up. One could also argue that some of that has contributed to a stock market bubble in the U.S. that has yet to be burst. Money flowed to the U.S. too and we have been able to run an easy money policy only because the dollar is "less bad" than the Yen. My point being that money backed by something would have prevented the entire series of events in the first place. Fiat money is wide open to error and abuse that currency markets have failed to prevent. Wayne