America taking over Japan (87)

33 Name: Ruyter 2005-12-06 11:42 ID:AZcilrtn

>>29 and >>32 have a good point. As an economics student, we talk about the US twin deficit regularly. The Japanese own a shitload of dollars. Should the US make a hostile move on Japan, the most devastating thing that Japan can do is to release all those dollars on the market. The value of the dollar will plummet beyond hell, and due to the massive amount of dollars, inflation will surpass banana republics inflation levels a long time. Do I even have to point out what kind of position this would put the American economy in?

Ok, so there's a bunch of crazy christians in the government. But in Ole Capitalist America there'll always be more power from the people who care about their profit margins. So no invasion. sorry guys.

>>32 also got a point by saying

>>If done properly, and without warning the Government of Japan sold off all the Federal Bonds (american) that they control...

This has to do with expectations of investors. In this case, they are a stabilising force. Should the American government even prepare for hostile moves against Japan, then they will assume a Japanese binge selling of dollars. They will anticipate on it, which already causes the effects before the action really happens meaning: The american economy is in deep shit before they even attack Japan.

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