Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: goldsnow who wrote (3921)	12/7/1997 9:19:00 PM
From: goldsnow	Respond to of 116753

South Korea troubles seem to just begin not end with IMF loan biz.yahoo.com Next loan surely will come from Japan (IMO selling of Treasuries-what a great justification for Japanese to do just that, more so if verbal warning does not prevent Yen from sliding (they cannot print and not sell, ala Swiss and Gold) infoseek.com

To: goldsnow who wrote (3921)	12/8/1997 6:10:00 PM
From: goldsnow	Respond to of 116753

Japan has dug deep into pocket for Asian bail-outs 09:56 a.m. Dec 07, 1997 Eastern By George Nishiyama TOKYO (Reuters) - Japan, which pledged the most of any nation to recent Asian bail-out packages, has dipped into its foreign reserve holdings to avoid stirring up a political debate over such generosity abroad at a time of fiscal austerity at home. Japan will, of course, have little difficulty finding the cash. It is the largest holder of foreign reserves in the world with about $228 billion. And by using the reserves, managed under the Government Special Foreign Exchange Account, the Ministry of Finance avoids contradicting Prime Minister Ryutaro Hashimoto's commitment to fiscal reform, since use of the money does not require parliamentary approval. While it allows MOF to move quickly on aid, some analysts said such unchecked use of the special account posed problems. ''The fact that the MOF can use the account freely at its own will is a problem,'' said Sayuri Kawamura, senior economist at the Japan Research Institute. Any fresh government spending is likely to meet criticism at a time when Tokyo is striving for fiscal reform. Last month, the parliament approved a fiscal reform bill which sets strict limits on budget expenditures for the next fiscal year and subsequent years through March 2001. For example, money for Tokyo's official development assistance will be slashed by 10 percent next fiscal year. Yet Japan pledged to provide $10 billion in financial support to South Korea this week to augment a financial assistance package by the International Monetary Fund. Tokyo's offer is twice that of the second-largest offer of $5 billion by the United States, and comes on the heels of a similar promise by Japan in November to offer $5 billion to Indonesia. In both cases, the funds, if needed, will be disbursed in the form of currency swap transactions, in which Japan is expected to provide U.S. dollars in exchange for the recipient nation's currency or its government bonds of equal value. Analysts said that the swap pledges posed a risk as Japan will be holding currencies such as the Indonesian rupiah and Korean won in its reserves, albeit temporarily. Combined with its pledge for Indonesia, Japan will have an obligation to provide up to $15 billion from its external reserves through swap transactions if they are requested. Although the funds, likely to be in the form of U.S. dollars, will be returned after the transaction period, there is a possibility that during that time the make-up of Japan's external reserves will be drastically altered. Presently, most of Japan's external reserves are believed to be in dollars accumulated through currency intervention. ''It is true that theoretically, Japan may have such currencies (as rupiah and won) in its reserves temporarily, but the reserves will eventually be restored to the previous state since it is a swap transaction,'' one monetary source said. Finance ministry officials defend Tokyo's support for both Jakarta and Seoul saying they are a ''second line of defense'' in addition to IMF's assistance and insisted it was unlikely to be used under ''ordinary circumstances'' in light of the IMF's support. Copyright 1997 Reuters Limited. All rights reserved. Republication and redistribution of Reuters content is expressly prohibited without the prior written consent of Reuters.

To: goldsnow who wrote (3921)	12/8/1997 6:18:00 PM
From: goldsnow	Respond to of 116753

>>OFF AND ON TOPIC JOKE>> >> British business man complains to his aquintance: I have been going to Portugal on business twice a month for the past four years. I shop for the same cigars from the same shopkeeper and imagine in all those years the bastard never bothered to learn English!!>>

To: goldsnow who wrote (3921)	12/8/1997 6:29:00 PM
From: goldsnow	Read Replies (1) \| Respond to of 116753

The 30-year bond was off 22/32 to yield 6.14 percent. # stages Stocks-Bonds-?Metals ''It's dead. We're caught between the strong economic data and the prospect of weakness in the future,'' said the head trader at a primary dealership. He said the employment report on Friday provided a shock to the market. ''If there wasn't an Asian crisis at this point the Fed would have to be seriously thinking about tightening,'' he said. biz.yahoo.com