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[linrom1]

This is a fascinating write up by Mark on VR about so called deflationary my words Japanese economy, especially the part where Japan earns more in unearned income than from economic trade. Not only is Japanese economy stronger than US, but the average Japanese earns higher income and has significantly more savings than average American. The Japanese Ministry of Economic Truth has simply caught on before our Government did. But as good students, we have been trying to emulate Japan ever since.

For instance, consider the much maligned 1990's banking crisis in Japan. Despite overwhelming criticisms and ridicule, Japan has never written off much of its bad real estate debts, which is precisely what we're doing with FNM--a lesson learned from Japan. In fact , FNM operates in manner similar to a Japanese Bank in early 1990's. Alan Greenspan was so impressed by the success of Japanese Monetary policy of pegging and pinning interest rates at zero, that he jumped at the first opportunity to do likewise and sparked our real estate bubble.

Throughout much of the 90's, Japan through campaign of disinformation has managed to retain global supremacy in manufacturing by feinting deflation which has allowed it to depress value of its currency and turn on the spigot of "carry trade" to earn interest and dividends on its trade earnings without political backlash. To this day, none is certain whether Japan is officially out of deflationary paralysis or on the road to recovery.


Link

[da_cheif]

> Japan earns more in unearned income than from economic trade.<

geeziz...i heard that same argument used by the bears about the US market 20 years ago.....they never learn.......these gurus that mix all that funda crap with pure TA......havent gotta chance to be consistantly right.....we need them...we love them...and we cant live without them.......keeps the equation in balance....how bout 3 peaks anda domed house.....or pushing on a string........lol


>To this day, none is certain whether Japan is officially out of deflationary paralysis or on the road to recovery.<

yah right....sez who......geeziz,,...timing is absolutley everything

http://siliconinvest...?msgid=18896895

Edited by da_cheif, 18 June 2007 - 07:42 PM.