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The Forum > General Discussion > The RBA's Scortched Earth Policy = Bad Economics

The RBA's Scortched Earth Policy = Bad Economics

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The problem with putting the money into super is that it then gets invested somewhere, usually in the local economy. So it wouldn't reduce inflation either. Economists usually assume that retail consumption demand drives inflation cycles. This is usually a reasonable assumption, but it wouldn't be if the money was channeled into investment. You wouldn't eliminate inflation, you would just change the cause of it.
Posted by freediver, Wednesday, 19 March 2008 2:29:58 PM
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Easy Times, I think you're a little confused as to what I was referring to. The Toyota Production System and the Keiretsu System are two entirely different animals. One is a system of production that cuts waste, and and the other is a system of cross shareholding with a bank as the main lender.

The Toyota company's success came as the result of its system of production, one which is now marketed in the West as Lean Production. Therefore it is surprising that you read Japan instead of Toyota in my post and that you talk about boom and bust speculation rather than the merits of the Toyota Production System.

While it is true that the Keiretsu system came unstuck in the 1990s it virtually identical to the way that the US economic system is coming unstuck right now. The difference being that the Japanese political system tried to cover it up and push it under the carpet and hope it would go away, which it did just recently.

I'm not about raining on your parade but please if you are going to critique my points please do so by working on what I'm actually talking about. You're obviously an intelligent person and there's much that I could learn from engaging in a discussion with you, but not in this fashion.
Posted by Ian in Tokyo, Thursday, 20 March 2008 12:53:51 PM
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I was listening to parliament today and yet another cliche slipped from Kevin's mouth,"rubber on the road" obiviously from his raging youth.We've had ,"fork in the road, bridge too far" etc.Can we now rename Kevin as the "Cliche Kid"?

The Cliche Kid is tough and strong,
The Cliche kid just can't go wrong,
The Cliche Kid eats "me too" bars,
And that can't be far from wrong.
Posted by Arjay, Thursday, 20 March 2008 6:37:27 PM
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