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Subject:  Re: Japan to end interference Date:  3/28/2004  10:53 PM
Author:  Lokicious Number:  9760 of 36326


I actually did kid of know that, but thanks for the detailed lesson anyway.

Japan, like the US, is in a bind. It can't really keep US interest rates artifically low and dollar high indefinitely, but if it stops, US interest rates go up and import prices go up (and inflation in US), squashing Japan's export economy, not to mention US economy, as higher interest rates destroy housing market, etc.

As your pessimist gurus say, at some point the piper must get paid. I'm still not really sure whether it's deflation or inflation or stagflation or stagdeflation (courtesy Kent), but in some way US consumers will not be able to live as high off the hog on borrowed time and money.
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