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To: combjelly who wrote (30721)	3/8/2001 7:24:52 PM
From: Bill Jackson	Respond to of 275872

combjelly; That is the big problem. they still want to save face and feel that saves the day. Their mindset is like Compaq adopting the Dell model. They have an embedded old boy network and manglement infrastructure thay they feel is sacrosanct, and so they do and try other things. What they must do is call those loans and sell of those companies assets, etc as takeovers to foreign companies. So far they have used internal refinancings at zero interest to mask this and permit the old cost structures to persist. You would be apalled at the costs that common people pay for mundane items. Everything is distributed through an archaic distribution system with 5-6 tiers of wholesallers and distributors etc. When they had a strong balance of trade this was masked. people would pay 100 yen for a coke that was 4 ounces in a vending machine and that was the norm. Ever wonder why they had stuff in the duty free shops at Anchorage that was twice the cost it was in downtown Anchorage? In Japan a tin of salmon that was $1.50 in Chicago and $2.00 in anchorage was $5 in the duty free. I was always amazed and I asked and was told that salmon was $8 in japan so the tourists thought this was a great deal. Now heavy automation keeps japanese production barely competitive on the mainland and all new stuff is beinbg made in offshore places. The Japanese find it too unpalatable for their car factroies to get bought out by GM or Fiat etc...unthinkable crushing of the Japanese ego would ensue, so they propr thenm up with loans and the losses continue and mount. They have to bite the bullet, but the average japanese will not face this, it is too unpalatable. Their only hope is total currency float, let it go and try and live through thre dislocation. Italy did it years ago, ever wonder why it took boxes of Lira to buy stuff. Well in 2 years the yen could hit 500 to the $. That will solve it as long as they let it go. I would prefer a float and a 2% weekly limit before support. A full float is preferred, but they will not do that. And I mean a full float, no US or japanese currency support at all. they will probably not do it and the problem weill persist. The USA bit the bullet, remember a few years back? Japan must do the same. Bill