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To: orkrious who wrote (1359)	10/8/2003 9:08:40 PM
From: re3	Read Replies (2) \| Respond to of 110194

(from the real estate thread)... Japan Weighs Radical Deflation Therapy Benjamin Fulford, 06.09.03, 9:50 AM ET forbes.com TOKYO Japan is considering taxing all cash and savings in an effort to force its people to spend their money or lose it, according to Shukan Gendai, a leading Japanese newsweekly. The plan, as outlined in the magazine, calls for an annual tax of 3% to 5% on all savings and time deposits in the country. The aim of the move is to force Japanese savers to either buy consumer goods or put their money in stock, bonds or real estate to avoid what in effect would become a steep negative interest rate on their savings. To stop people from simply hoarding cash, the magazine says the move would take place next April when the Japanese government plans to replace current currency with new, hard-to-forge bills. Old cash would be exchanged for new cash after the government takes a 3% to 5% cut and inventories how much people have stashed away. If people fail to change their old bills before that time, they will become worthless pieces of paper. Needless to say, underground money held by gangsters, tax cheats and others would be forced into real estate, bonds or stocks. The only other alternative would be for Japanese savers to take their money overseas, a move which would send a tsunami of yen onto world markets. Since Japan has about $12 trillion in savings, this move, if implemented, could have massive repercussions. It would almost certainly end the 13-year Japanese equity bear market. It could also end deflation in the country. U.S. companies who have invested heavily in Japanese real estate and stocks, or bought Japanese companies, should benefit nicely. These would include Goldman Sachs (nyse: GS - news - people ), Morgan Stanley (nyse: MWD - news - people ), General Electric (nyse: GE - news - people ), Wal-Mart Stores (nyse: WMT - news - people ) and all the various hedge funds--including Ripplewood Holdings, Cerberus and Carlyle--that have big Japan bets.

To: orkrious who wrote (1359)	10/9/2003 7:32:02 PM
From: russwinter	Respond to of 110194

Has to be a record for BOJ US debt buying. Reuters Foreign central banks still hungry for U.S. debt Thursday October 9, 5:08 pm ET NEW YORK, Oct 9 (Reuters) - Foreign central banks kept buying U.S. government debt at a record pace last week, deflecting worries that a recent drop in the dollar could prompt Asian central banks to rethink such purchases. The Federal Reserve said on Thursday its holdings of Treasuries and agencies for foreign central banks rose a hefty $18.2 billion to $991.77 billion as of Wednesday Oct. 8 compared to the prior Wednesday. Foreign central banks mostly bought Treasuries rather than debt issued by U.S. government-backed agencies like Fannie Mae and Freddie Mac, just as they did last week. Holdings of Treasuries rose $16.94 billion in the week to an all-time high of $798.67 billion, while agency debt rose $1.30 billion in the week to Oct. 1, to stand at $193.10 billion. The money supply data are based on an average of daily figures. The dollar has been under pressure since officials of the the Group of Seven most wealthy nations, led by the United States, sent a thinly veiled warning to Asian central banks to stop weakening their currencies against the dollar to boost exports. That message raised worries of reduced demand from these big buyers of U.S. debt, primarily Japan and China, that could lead to sharply higher interest rates. However, the G7 statement has not stopped Japan from intervening to restrain the yen, even going so far as to enlist the help of the New York Federal Reserve to sell yen on its behalf earlier this week. Much of the dollars bought in that intervention could well end up in U.S. assets and will be held by the Fed, which holds some $786 billion of Treasuries on behalf of foreign central banks, mostly from Asia. Indeed, foreign interest in the Treasury's new five-year notes sold on Wednesday was strong. In an unusual development, indirect bidders -- mostly offshore central banks -- actually bought more of the debt than U.S. primary dealers.