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Politics : Stockman Scott's Political Debate Porch -- Ignore unavailable to you. Want to Upgrade?

To: SOROS who wrote (526)	6/19/2002 1:22:20 PM
From: Jim Willie CB	Respond to of 89467

in Japan, big question is continued forced govt pensions they are all going into those 1/4 of 1% Govt Bond Funds what a crime!!! if the voters stop such diversion of pension money into that black hole oblivion, WE MIGHT SEE A MAJOR GOVT BOND DEFAULT a huge question also looms as the Japan banking system goes into its final throes, what will be the reaction on its very substantial USTBond holdings and the dollar/yen rate? my guess is the banks themeselves will be large sellers of their best assets, the USTBonds as they stave off bankruptcy given that their banks hold $1600 billion in bad loans, this will be the biggest liquidation of nonperforming portfolios in history this will hurt the dollar and our rates also, govt response will be a large printing of new yen as they monetize their entire banking system, nationalizing it, otherwise known as a bailout but such a bailout would be the largest ever seen in history this will help the dollar the result may be a wash, but an enormous wash with very large crosscurrents to and fro the likes of which the world has never seen before the effect on GOLD will be hard to judge the volatility produced will be good for GOLD the private sector, holding $12 trillion in savings, will move with more haste into GOLD but the world watching such a deadly implosion will likely move into GOLD also I think this is gonna bring about the dollar/yen going from 124-125 now up to around 135-140 since the govt is gonna go wild printing money but the surprise will be the rise in GOLD simultaneously oy veh, JimmySon