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To: Defrocked who wrote (63631)	9/22/1999 6:57:00 PM
From: pater tenebrarum	Respond to of 86076

Def, i completely disagree...the BoJ is correct in it's policy stance. in fact, it should simply allow the deflationary collapse to continue as fast as possible and remove all the weak players from the system. the broad monetization everybody is recommending only delays the destruction of the white elephants created by the malinvestment during the bubble years. it would merely amount to muddling through until the inevitable happens anyway. the real concern is really not the strong Yen...the strong Yen is GOOD for Japan, as it is a vote of confidence and forces corporate restructuring. the real concern on everybody's mind (in the west at least) is that the strong Yen means a change in international capital flows and consequently could lead to a bursting of the Wall Street bubble. i say let the bubble burst, the sooner the better. it is a fallacy to say, as Summers does, that a strong dollar is in the interest of the U.S. that's utter nonsense! the only way to reverse the alarming growth in the trade deficit is to let the dollar weaken and allow the asset bubble to deflate. a strong dollar will simply lead to a further exacerbation of the existing imbalances and require a much harder adjustment in the end. in short, BoJ is right, Summers is wrong.