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To: marginmike who wrote (112112)2/4/2002 1:34:55 PM
From: Wyätt Gwyön  Read Replies (1) | Respond to of 152472
 
Japan will not repatriate debt from the US. that would be suicidal because they would kill their biggest customer and kill themselves in the process. this is the last thing they want, as it would cause the yen to skyrocket.

instead, they are trying by competitive devaluation to beggar their asian neighbors, and also to reflate their economy so as to ease the real debt burden. their govt has record debt relative to GDP is extremely high (highest in the world among developed nations), and the easiest way to get rid of it is to create inflation. so the people who will suffer from Japan's devaluation of the yen are Korea and (to a lesser extent) China.

all JMHO



To: marginmike who wrote (112112)2/4/2002 1:37:54 PM
From: limtex  Read Replies (1) | Respond to of 152472
 
mm - anything along those lines involves scenarios that are so dangerous as to be not worth worrying about investments.

In circumstances that people are scared of the US governments credit there is effecively no global financial system.

Investments then cease to be our primary concern indeed they are totally inconsequential.

Best,

L