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Politics : Ask Michael Burke

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To: Knighty Tin who wrote (33716)10/10/1998 1:15:00 PM
From: Merritt  Read Replies (1) of 132070
 
Mike:

The point I was trying to make was that market forces, i.e. weaker dollar and dropping bond prices/rising yields, preclude AG being able to cut rates. That is if the Japanese are, in fact, redeeming treasuries.
Skeeter just posted a link that speculated the BOJ would start their presses rolling in order to provide liquidity to their banking system. They may, but it seems more likely to me, that our Fed is the one printing money to provide Japanese liquidity...after all, the Fed is the one with the IOU's out.

Merritt
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