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To: Rmn who wrote (12095)	12/21/1997 11:56:00 PM
From: Zeev Hed	Read Replies (1) \| Respond to of 18056

Ramsey, you usually raise interest rates to fight a raid on your currency, so I presume you are saying that China will devalue unilaterally (as a competitive move and to keep the Yuan in line with the Won and other tigers). I do not see what will be served by that, their imports of technology will be higher and their labor, even at current relative currencies are still cheaper than the neighbors. I think the lowering of interest rates is more an internal fight against destabilization of their banking systems (allowing the banks to rebuild balance sheets by earning greater spreads). This is just my opinion. This will also lower the interest rate burden on a number of state entreprises which are not particulalrly efficient (not because of labor cost as much as multilayer of beurocracy and lack of responsiveness to market forces). Zeev

To: Rmn who wrote (12095)	12/22/1997 12:49:00 AM
From: Brad Bolen	Read Replies (2) \| Respond to of 18056

RE: Zeev, i'm waiting for the other shoe to drop (china). They lowered their interest rates from 9% to 1% last week. They'v been denying that the yuan is gona devalue. How long do you think before it happens. I think maybe this week. You better believe it. I called my mother-in-law once again in Australia and begged her to get her assets out of Hong Kong. Once they bust that peg on the HK dollar all hell will bust loose there. She wouldn't listen to me when I warned on her property this summer, but I hope I've gained some credibility since then. B.

To: Rmn who wrote (12095)	12/22/1997 8:26:00 AM
From: tekgk	Read Replies (1) \| Respond to of 18056

Ramsey, I have been watching the China situation as well. I have found lots of verbal confirmation as well as posts on SI but I can't find anything on any news services regarding the interest rate drop. This kind of an interest rate drop spells serious trouble for the yuan. It was China that started this whole competitive currency devaluation in Asia. If round 2 is about to begin I am going to move my sharp drop scenario forward just like Zeev to now from end of January. My drop timing was mostly related to IPO's, earnings problems and Central Bank sales of US paper.