31-07-2002 07:03									#121
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Ned,

I don't wish to pretend to be an expert on the Japanese economy, because that simply isn't the case. I do know that their nominal rates have been hovering around zero for quite some time. Given the deflationary environment, this means that real rates are indeed below zero (remember the difference between the two). As for the bad loans, a major source of the problem is the kairitzu (again, sp?) system found in Japan, which I'll assume you are familiar with. It creates quite the domino effect, not to mention some questionable banking practices in the first place.

	31-07-2002 08:39									#122
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S. Kroeze, I said nothing at all about distinguishing between people based on national origin except to say that to do so was wrong. I am the first to say we have benefitted enormously from immigration, including immigration from Muslim countries. Your quote of me from above supports what I said. We cannot seriously discuss deporting tens of millions of illegal immigrants from Mexico.

But as to the topic at hand, I said I now understood what FDR was trying to do in WWII by locking up the Japanese. He knew that the vast majority were loyal to the US. Only, some were not. And they were the problem.

	31-07-2002 08:45									#123
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quote: Originally posted by Kontiki Ned, I don't wish to pretend to be an expert on the Japanese economy, because that simply isn't the case. I do know that their nominal rates have been hovering around zero for quite some time. Given the deflationary environment, this means that real rates are indeed below zero (remember the difference between the two). As for the bad loans, a major source of the problem is the kairitzu (again, sp?) system found in Japan, which I'll assume you are familiar with. It creates quite the domino effect, not to mention some questionable banking practices in the first place.

Ah, are we mixing things up? An interest rate of 0% in an inflationary environment of 3% is really -3%. In a deflationary environment of -3%, that interest rate is really +3%.

So, in the sense that I mean it, the Japanese interest rates of 0% are actually "positive" since Japan has been undergoing deflation.