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Strategies & Market Trends : Asia Forum

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To: Ron Bower who wrote (5536)8/14/1998 10:28:00 AM
From: Robert Douglas  Read Replies (1) of 9980
 
If China wants to counter deflation there are much better ways to do it than by devaluing their currency. For starters how about some good old fashioned Keynesian stimulus. Build up their infrastructure and give their people incentive to spend. They have taken steps toward this but need more, IMO. The period of IMF austerity in Asia is over, what is needed now is demand for goods and services! The US cannot continue being the sole demand engine for the world. We need help from those in the best position to do so. In Asia this means China, Taiwan, Singapore and Hong Kong. Japan still has their head...in the sand (a nicer place than what I want to say) but should take those proposed tax cuts and triple them. And Europe, come on guys, stop thinking provincially and start thinking globally. Sorry about the raving at the end there.

-Robert

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