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To: GST who wrote (62953)1/24/2001 11:14:36 PM
From: Square_Dealings  Read Replies (1) | Respond to of 116768
 
GST

Economies can't be one sided such as the US and its huge trade deficit. A weak yen is good for Japan exports but lousy for US manufacturers selling into the country because US prices are too high in local currency.

If Japanese do not spend money then they have no chance to grow and US consumers end up holding the big credit card balances for a long time.

M.



To: GST who wrote (62953)1/25/2001 7:13:44 AM
From: long-gone  Read Replies (1) | Respond to of 116768
 
<<Are you saying that foreigners will buy stock in Japanese companies if the yen is strong?>>

Yes, on the surface, when a country's currrency is strong their investment climate for outside money seems better because there is a reduced risk of loss. Most believe that this reduces the loss by currency risk, leaving only company related loss risk but as the currency of a country gets stronger, exports suffer.