Comments on: SURVIVING DEFLATION: FIRST UNDERSTAND IT http://pragcap.com/surviving-deflation-first-understand-it Sun, 12 Feb 2012 11:38:21 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: ES http://pragcap.com/surviving-deflation-first-understand-it/comment-page-1#comment-12273 ES Mon, 01 Mar 2010 13:57:42 +0000 http://pragcap.com/?p=17580#comment-12273 It is hard to envision nobody wanting credit even if it is free in a global environment. There are still countries that require 8-10-12-15% interest on loans. They could borrow in US instead and invest elsewhere. I think, this is what happened in Japan as well? But the problem was that the money wasn't reinvested in Japan. It was reinvested in Europe, emerging countries, China fueling the growth there. Another obstacle I see is that for foreigners getting US loans is the number of checks they have to go through - they have no SSN, no credit history in the US etc, it makes it pretty much impossible. So, the only way is for foreign banks to borrow from US banks / financial institutions and then lend in their countries, thus making the spread. But that definitely limits the ranks of potential borrowers. It is hard to envision nobody wanting credit even if it is free in a global environment. There are still countries that require 8-10-12-15% interest on loans. They could borrow in US instead and invest elsewhere.
I think, this is what happened in Japan as well? But the problem was that the money wasn’t reinvested in Japan. It was reinvested in Europe, emerging countries, China fueling the growth there. Another obstacle I see is that for foreigners getting US loans is the number of checks they have to go through – they have no SSN, no credit history in the US etc, it makes it pretty much impossible. So, the only way is for foreign banks to borrow from US banks / financial institutions and then lend in their countries, thus making the spread. But that definitely limits the ranks of potential borrowers.

]]> By: mario http://pragcap.com/surviving-deflation-first-understand-it/comment-page-1#comment-12258 mario Sun, 28 Feb 2010 23:17:50 +0000 http://pragcap.com/?p=17580#comment-12258 put me down for a Jaguar, the free ones. put me down for a Jaguar, the free ones.

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