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.

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

To: Esvida who wrote (358)	1/3/1998 1:55:00 AM
From: Rational	Read Replies (1) \| Respond to of 9980

Japan has the leverage from a position of strength and SE Asia has leverage because they cannot prop up Western and Japanese exports due to their weaker currencies. US has maxed out its consumption, but not savings/investment. Asians have maxed out their savings/investment (in US Treasuries and stocks), but not consumption. We cannot force the ordinary US consumers to consume more or the wealthy Asians to save less. It is a difficult predicament. The mechanism for capital inflow to Asia (from wealthy Americans and Asians who have siphoned massive amounts to the US) must be restored; this cannot happen unless there is an implicit or explicit guarantee from Wealthy nations (or IMF) -- the key players are US and Japan and to some extent UK, Germany and France. Sankar << I think the recent posts tend to converge to the point that Japan holds the key to the recovery of Asia w/o damaging the US. >>