JAPAN DOWNGRADES ECONOMIC ASSESSMENT
The government downgraded its assessment of the economy Tuesday, and the
head of the country's chief economic agency warned JAPAN STANDS AT THE
BRINK OF A DANGEROUS DEFLATIONARY SPIRAL..
Taichi Sakaiya, director-general of Japan's Economic Planning Agency, said
that while the economy has not yet fallen into a deflationary spiral in
which prices sink lower and lower, "we are at the entrance of one". "We
must take actions to prevent the economy from being sucked in," he said.
Sakaiya's remarks followed the release of the Economic Planning Agency's
latest monthly report on the economy, which used the term "very severe" to
describe the current situation - stronger language than the agency had used
in the past.
The report cites a deterioration in key areas of the economy, noting
sluggish housing starts and rising unemployment. Sakaiya said the Japanese
economy could enter an "extremely dangerous" phase should the economic
situation outside of Japan continue to worsen. He added, however, that
Japan's hefty trade surplus and government stimulus spending will likely
offset the negative impact of the global economy's woes.
Japan entered a recession in the first quarter of this year, but the
government has been reluctant to acknowledge the economy has veered off the
path to recovery until recently.
END
________________________________________________________________
In conclusion, the threat of deflation is very real in the world's second
largest economy, which makes it a threat to the Asian region and the rest
of the world. This kind of information can not be ignored by investors and
must be factored into the investment making equation. Yesterday's global
market rally was a clear over reaction to Alan Greenspan's comments
regarding the possibility of lower interest rates, as well as, the
post-labour day attempt by investors to forget the real economic problems
plaguing the globe.
The fact is, global economic conditions have not changed and, as these
comments from the Japanese evidence, they may be getting worse if not dealt
with appropriately.
That is all for now.
Have a great day.
Regards,
Agora.
The Investor's Investor. Published by Agora International Enterprises Corp.
c COPYRIGHT 1997-1998 by Agora International Enterprises Corp. ALL RIGHTS
RESERVED
Information presented by The Investors Investor is not an offer to buy or
sell securities referred to herein. It is strictly for information or
entertainment purposes, highly opinionated and not in any way guaranteed as
to accuracy or completeness. Readers are urged to obtain complete financial
and other information directly from their investment advisor or the
company. We are not liable for any investment decision. We are not an
investment advisor, analyst, market maker, geologist, mining expert, money
manager, stockbroker, etc. Stocks mentioned tend
to be extremely speculative, volatile, high-risk and unsuitable for all but
the most aggressive investors willing to lose all of their investment.
DISCLOSURE STATEMENT
AGORA INTERNET RELATIONS CORP. receives a monthly monetary fee from
Mirandor Explorations Inc., Sideware Systems Inc., King Communications
International and Valu-net Corporation for the purposes of communicating
with Internet shareholders - both current and prospective - to increase
awareness of and interest in these companies AGORA INTERNET RELATIONS CORP
activities are aimed purely at keeping their clients' shareholders and
prospective shareholders informed about their company. These activities
consist of providing investors with previously disclosed factual
information concerning the company, comments from company principals,
copies of material that has been filed with regulatory authorities,
comments prepared by registered brokers or investment dealers and material
published in newspapers, magazines or journals.
AGORA INTERNET RELATIONS CORP does not participate in the maintenance of an
orderly market in their client's securities, nor is required, or receives
an incentive for, the maintenance or achievement of a price or trading
volume for their client's securities at a certain level, for a specified
period of time or by a certain date. AGORA INTERNET RELATIONS CORP. may,
at any time, own shares in these companies.
|
