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Post by unlawflcombatnt on Apr 4, 2007 2:44:09 GMT -6
The following article, Japan's Role In Global Imbalances, describes Japan's role in the world economy and the "carry" trade involving the Japanese yen. The carry trade is yet another way that the U.S. dollar is propped up, and remains relatively overvalued compared to other currencies.
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Post by blueneck on Apr 4, 2007 4:32:41 GMT -6
Having foreign gov'ts carry our debt is an extremely precarious dangerous proposition, but the neo-liberal CONS will never admit it.
How is it that Germany and Japan, who have higher wages, and more social services can remain competitive in the world market, when the US can not?
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Post by graybeard on Apr 4, 2007 7:18:01 GMT -6
How competitive is Japan, really? Seen anything Made in Japan lately? Toshiba laptops are now made in Communist China, along with probably all the others.
GB
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Post by blueneck on Apr 4, 2007 17:02:55 GMT -6
Their cars are putting the hurts to the big 3. (they're not all assembled here)
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Post by unlawflcombatnt on Apr 5, 2007 13:16:53 GMT -6
It's not that so much that Japan is prospering from the carry-trade. It's more a matter of them providing cheap money to global investors, causing increases in asset prices and credit. It's causing a lot of bad investment, especially non-productive paper assets.
It's reducing the U.S. Federal Reserve's ability to control the money supply and credit creation.
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