If hit as dollar is getting weak it's good for the market ,,, it will create stable monetary balance,, if getting hit as Yen is becoming weak and dollar strong then we are in trouble.. bad for rest of Asia ,, as rest of Asia is competing with softer currency who can produce highly advanced and desirable products much cheaper,,i.e. Honda Accord.. Sony TVs etc .. Japan Inc. Would you go and buy Sony 21 inch for 299 or buy White Star of Yangtze River Factory No 11 made 21 inch for 249 ?
If Yen goes over 150 yen per dollar ,, rest of Asia will have to devalue to be competitive with Japan ,,, which means killing their economy and people working for money that is good as paper ..
a chaos on top of current devaluation ,, and global economic melt down ..
I don't thnk it will happen ,, before such scenario happens Japan will enforce a drastic measure to support their banks ,, Today they lowered the rates to the level of meeting Islamic usuary code ,, a right step ,, it shows govt of Japan is willing to burn their national tresury ,, which is huge by the way thanks to American love for their walkmans and cars,,, G-7 will come to an organised effort and certainly Fed will lower the interest significantly..
For if your neighbor have no money to buy the goods you produce,, you will have to subsidise him ,, lend him money so he can buy things from you ,, or you your self will be out of job ,, and will have to sit around and just produce only what you eat,,
Bottom line ,,it sounds draconian ,,but I believe this is a wakening call to the international government body that truely ,, what we have is a global economy ,, and I think some sort of new order is needed in monitoring development of global economy ,, IMF and world bank has failed,, IMHO ,, Asian Development bank for many years have put the priority on the wrong sector .. a patch job ,, we had our share of Marcos,, Sukharnos,, Chuns and Sasakis.. they went for the gold ,, Billy went for the BJ ..
Inshallah ,, as they say in Arab countries,, god willing .. |
