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

To: Rational who wrote (432)	1/4/1998 1:11:00 PM
From: Geoff Nunn	Read Replies (1) \| Respond to of 9980

Question for Sankar, OFF TOPIC Please explain the meaning of the phrase "subtle corruption." Geoff.

To: Rational who wrote (432)	1/4/1998 2:09:00 PM
From: Rational	Respond to of 9980

This is from WSJ: In Chicago on Saturday, Federal Reserve Chairman Alan Greenspan cautioned about the negative impact of "very rapid asset price declines," but his comments are unlikely to move the dollar [lower]. The subject of Mr. Greenspan's speech was the accurate measure of inflation. Greenspan appears to be very concerned because despite a faster money supply growth, the market remains bullish on the US$. I am posing a quiz for everyone based on the following: * The Fed could have raised the interest rate in November, but due to the current deflatinary pressure, kept the rate unchanged. * Money supply growth is increasing * Greenspan is cautioning about "very rapid asset price declines" * US trade deficits are rising at an alarming rate * Last week, the Ministry of Finance's influential vice minister for international affairs, Eisuke Sakakibara, bluntly warned that the BOJ will "take decisive steps" to defend the yen and that it would "intervene in such a way that it will surprise the markets." * Japan has generally made such statements to thwart US critisms related to trade deficit, but has meant to not act really decisively. * IMF Managing Director said that they are working on improving Asian currencies. What could Greenspan and other US policy makers be thinking about about the future course of US$? Sankar