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Non-Tech : Dorsey Wright & Associates. Point and Figure

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To: Tigress who wrote (5946)2/7/2000 6:07:00 PM
From: Tigress  Read Replies (1) of 9427
 
Diana,

Further to our discussion on Japan, it was reported today that Japan's:

Public debt is 120% of GDP and
Private debt is 200% of GDP

Apparently there will be unsterilzed intervention (printing of excess money) in Japan.
The Japanese will be printing Yen to prime their pump as the Yen loses value against the US $.
The Japanese will sell US dollars (our Treasuries), and buy Yen so their Central Banks can retire other debt and loosen their monetary policy so Japan can recover.

So the Yen will rise, the US $ will decline.

This is supposed to bode well for US companies doing business in Japan, esp small & mid cap tech companies.

It appears to me that this will be reverse of what occurred in '98, wherein the small & mid caps declined.

Now, there is something cooking in China - which I hear will not bode well for US companies over there. As I hear more, I'll report it.

Tig

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