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Strategies & Market Trends : Asia Forum

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To: RealMuLan who wrote (235)12/29/1997 10:02:00 PM
From: P.T.Burnem   of 9980
 
Japan is the single largest creditor of the USA, and if they have to sell the US treasury bonds to solve their own financial trouble, then it is the US stock/bond market who will suffer.

Selling Treasury's would a) drive the yen/US$ exchange rate higher and b) slow the US economic growth. As a result, Japanese exporters would be hit real hard.

PTB

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