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Strategies & Market Trends : Asia Forum -- Ignore unavailable to you. Want to Upgrade?

To: Tom Markowski who wrote (354)	1/2/1998 11:43:00 PM
From: Rational	Read Replies (2) \| Respond to of 9980

Tom: << If YEN continues to sink (and I think it will)....>> This has been precisely my point too. If no action is taken to raise SEA currency values, Japanese will want the yen to fall to compete with Korea and to ease their exports to SE Asia. The US must act to avoid the trade surplus. But, how? * IMF loans are not helping restore currency values. * US can prohibit imports, but that is impossible within the free-trade agreements. * The political rhetoric asking Japan, Korea and other SE Asian nations to open their doors for more American goods will be more silly than ever because Asian countries cannot import much as they have been forced not to (Mahathir?). IMO, US must have to fund SE Asian purchases of American goods which will improve the currencies and prompt Japan to help raise yen, improve American exports, and help everyone. [In a way, the IMF loans are doing some of this.] SE Asians can repay the loans easily at the improved exchange rates. This will be easy IF the US can control the monetary policy of SE Asian countries; but that is unlikely and I see quite a lot of uncertainty because policy makers can collectively go wrong in timing; no matter how smart they are. Sankar