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You don't mean the Japan where the personal savings rate is many times that
of citizens of the US do you? That doesn't sound like a very good predictor.
If enough money is created, you will have inflation.
Isn't that also the same Japan where so few can afford to buy a home that they are doing multigenerational 100 year home loans? I think looking to them on how to handle debt may not be the best choice.
Isn't that also the same Japan where so few can afford to buy a home that they are doing multigenerational 100 year home loans? I think looking to them on how to handle debt may not be the best choice.
on how to handle debt?
no, that's not what i said. To clarify: Look to japan to see a modern example of an economy with years of currency printing and minimal inflation. Both the U.S. and Japan have been in a liquidity trap, and have taken similar measures to deal with it.
no, that's not what i said. look to japan to see a modern example of an economy with years of currency printing and minimal inflation. Both the U.S. and Japan have been in a liquidity trap, and have taken similar measures to deal with it.
In that case, I misunderstood what you were saying.
But I actually was responding more to mortimer, who indicated that people in Japan have a better grasp on how to handle their money than we do, which may be true in some respects, but not all.
Basically it's costing banks less than that to lend the money, they are paying less on deposits and as stated they aren't going to hold those loans through maturity
In theory low interest rates encourage money into the market which is inflationary in it's own regard.
Also in theory when you have such a sustained period of increasing fuel costs it raises the transportation aspect of goods and the total pricing - also inflationary
However, as mentioned above traditional theory isn't hanging out here much anymore ..... i think everyone is just trying to keep pushing along far enough and get some economic growth going before inflation kicks in to avoid stagflation
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