tag:blogger.com,1999:blog-6616959642391988608.post3435342701574303948..comments2024-03-28T00:18:25.641-07:00Comments on Calafia Beach Pundit: Copper updateScott Grannishttp://www.blogger.com/profile/14028519647946868684noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-6616959642391988608.post-80693151702139387072009-03-23T17:29:00.000-07:002009-03-23T17:29:00.000-07:00PD: On the subject of whether the Japanese experie...PD: On the subject of whether the Japanese experience with deflation has relevance for our current situation, I really don't think so. Japan's deflation was the result of massively deflationary monetary policy which was reflected in a gigantic appreciation of the yen. Our dollar has not exactly done the same, and is actually pretty weak. The Japanese banks were not allowed to clean up their Scott Grannishttps://www.blogger.com/profile/14028519647946868684noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-44069432717929326122009-03-20T14:20:00.000-07:002009-03-20T14:20:00.000-07:00There is a pretty strong negative correlation betw...There is a pretty strong negative correlation between copper prices and the Chilean peso, which lends strength to your argument. It also helps that the government has recently decided to spend some of the $billions that is has socked away in its rainy day fund (from copper revenues). <BR/><BR/>If deflation is over and monetary policy actually gains traction and becomes inflationary, this should Scott Grannishttps://www.blogger.com/profile/14028519647946868684noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-23669029492632115832009-03-20T10:24:00.000-07:002009-03-20T10:24:00.000-07:00With copper prices stabilizing and free-market Seb...With copper prices stabilizing and free-market Sebastian Pinera with high chances of being elected as President of Chile at the end of this year it is time to turn REALLY BULLISH in the Chilean economy.Mati Vivaldihttps://www.blogger.com/profile/14046954109288170109noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-71664218750865500802009-03-20T05:37:00.000-07:002009-03-20T05:37:00.000-07:00Scott, A question on where we are going with the e...Scott, <BR/><BR/>A question on where we are going with the economy. I agree with you that we are not heading for the Great Depression (deflation, massive decline in the economy), but I do fear we are heading down the path of Japan in the mid-80's.<BR/><BR/>Japan saw little growth for 25 years despite big government spending. Japan was (is) an over leveraged, tapped economy that has been unable PD Dennisonhttps://www.blogger.com/profile/10012560806774461700noreply@blogger.com