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To: goldsnow who wrote (4540)	12/20/1997 5:49:00 PM
From: philv	Respond to of 116752

Goldsnow: Economic growth slowing but still growing! Yes, that is the message. No negative growth anywhere, Thailand the worst performer at 0 growth. Nothing to worry about, everything under control. Asian crisis has an almost negligible effect on US and world economies. Trust us, be optomistic, borrow, buy and spend. Phil

To: goldsnow who wrote (4540)	12/20/1997 7:10:00 PM
From: philv	Respond to of 116752

Goldsnow: How will Asia remedy their problems? EXPORT Problem is, who will buy? Old uncle Sam, that's who. But can they? Seems like the system is trapped. Take Japan for instance. They need to adjust their Yen upward, so that their imported commodities are cheaper, without affecting their exported goods too drastically. Solution: they need to sell their US paper (as they have been doing), and buy Yen. But this holds a problem for the U.S. dollar. The BOJ has about 300 billion US dollars in reserve, of which they have recently sold about 8 billion. Massive selling could disrupt currencies, while doing nothing results in ever increasing trade surplus with the U.S. biz.yahoo.com November's trade surplus with U.S.A. was over 8 billion dollars! For the U.S., the choices seem limited. Allow Japan to sell their U.S. paper, or put up with unsustainable trade deficits. Neither option is pleasant.