Re: Is Bernanke Behind The Rallies? Query to Barkley

["Henry C.K. Liu" <hliu@xxxxxxxxxxxxxx>]

Warren Mosler wrote:
> The trade
> > surplus turns yen input
> > into dollar output thus shrinking the yen money
> > supply and contracting
> > the yen economy.  The Japanese trade surplus in
> > dollars,together with
> > the US capital account surplus in dollars, cause
> > deflation in Japan
> > which in turn supports the Japanese trade surplus,
> > which in turn
> > supports the US capital account surplus, thus
> > causing spiralling
> > Japanese domestic deflation.
>
>
> I respectively disagree.

Warren,

Which part do your disagree with?  Or do you have a different view of
Japanese deflation?

Henry