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I thought all that Japanese money hade been financing the US budget
deficit because it was parked in US Treasuries earning a lot more than
you can earn in Japan, and in a currency likely to stay stronger than
the yen as long as the underlying economy in Japan needed favorable
exchange rates to support exports. Same, to a lesser extent, can be said
about the euro.
Regards
DanG
bruce.larson@xxxxxxxxxxxxx wrote:
>
> The Fed injects liquidity by buying back mainly short treasuries. So
> now the banks are sitting on alot of cash. The only way this is
> distributed through the system is if the banks are willing to lend
> this excess cash out and if borrowers see leveraged investment
> possibilites. Japan loosened in the 90s but it didn't do the
> domestic economy any good because domestic borrowers were perceived
> uncreditworthy. I'm sure the borrowers and investors were already
> drowning in a tide of debt and stock market losses. Initally the
> liquidity went offshore to Southeast Asian ventures which pretty much
> all bit the dust. Now all the money is parked in long Japanese
> government bonds which last time I looked yielded about 1.4%. Who in
> their right mind would buy long-term debt in the world's most
> indebted nation suffering through a severe recession and doing
> everything it can to weaken its own currency? Better off putting
> your money under a mattress.
>
> --- In realtraders@xxxx, profitok <profitok@xxxx> wrote:
> > Hello
> > Attach is the latest m3 money supply as reported by the fed
> > ----- Original Message -----
> > From: "STUART AUSLANDER" <u.stuart-auslander@xxxx>
> > To: <realtraders@xxxx>
> > Sent: Monday, October 01, 2001 10:05 PM
> > Subject: [RT] Adjusted Reserves Sept 19, 2001
> >
> >
> > > Adjusted reserves of the banking system which have varied from 60
> to 70
> > > billion for the last 3 years(except during Y2K) grew from 68 bil
> on
> > > September 5 to 107
> > > billion on September 19. (These are the Fed StLouis measures of
> the
> > > required reserves need by the banking system to support their
> > > deposits.) I would say the FED has taken out all the stops and
> intends
> > > to dramatically stimulate the economy with money.
> > >
> > > It is my feeling (I would love feedback on this) that money has
> been
> > > tight despite declining interest rates. Declining interest rates
> do not
> > > necessarily make money loose. I suspect we have just seen a major
> > > change in FED policy.
> > >
> > >
> > > To unsubscribe from this group, send an email to:
> > > realtraders-unsubscribe@xxxx
> > >
> > >
> > >
> > > Your use of Yahoo! Groups is subject to
> http://docs.yahoo.com/info/terms/
> > >
> > >
>
>
> To unsubscribe from this group, send an email to:
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>
>
>
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