Timely thread, Bill!!!
I hear that on the black market the yuan is already dropping......time to intervene or we will have currency devaluation wars....all will lose (except precious metals?).
Looking forward to the discussion.
THC
Yen fall might spark world depression-Thai deputy
By Carrie Lee
HONG KONG, June 11 (Reuters) - Thailand's Deputy Prime Minister Supachai Panitchpakdi said on
Thursday excessive falls in the Japanese yen might trigger a second crisis in Asia which would
develop into a global depression.
''If it's an excessive drop, that might trigger a second crisis,'' he told reporters after a seminar on
Asia's turmoil.
''Competitive currency devaluation will spell the second crisis and that might be initiated if the yen
drops below a certain level. That would drive all the funds away from Asia.''
Cheaper Japanese goods consequent to the yen depreciation would intensify competition among
the regional economies in their export markets, Supachai said.
The second regional crisis, which would be much stronger and more serious than the one that
started last year, would develop into a global scale, he said.
''It would pull the whole world into it. It would be like a black hole,'' he said. ''The second Asian
crisis would mean the first worldwide depression.
''Asia's second crisis...would become the world's first financial crisis. And so recession in Asia
could be turned into a worldwide depression,'' he told the seminar.
But he declined to speculate on the yen rate that would spark a new crisis, saying only that the
Japanese currency was already at ''too low a level.''
The yen came under strong pressure this week, briefly breaking through the 142 per dollar level for
the first time in seven years on Thursday.
The second regional crisis could take place soon if the markets perceived no concerted effort to
fight against economic crisis, Supachai said.
He urged the world to work together to prevent a second Asian crisis.
''I think there is a need for some international action to stabilise the Japanese currency,'' he said.
He said the yen's fall would affect the Thai baht. ''If it (disturbance) comes from Japan, the
disturbances would be quite significant. It will affect us as well.''
But he said he hoped the baht would not fall to the low level of about 57 to the dollar recorded in
January.
The baht traded at around 43.10 per dollar late on Thursday afternoon. |
