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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: Bill Grant who wrote (5793)	1/14/1998 1:43:00 AM
From: PaulM	Read Replies (2) \| Respond to of 116764

Bill I don't know about Bretton Woods and all that except that the world's govts do take exchange rate stability seriously. Not very succesful as of late though. I suspect the meeting in Washington with "Mr. Yen" went sour last week. The U.S. probably overestimated its bargaining position and the Japanese clearly decided on some unilateral policy which they began implementing. Ever since the yen has been higher despite indications the U.S. refused any dollar devaluation. So now its the U.S. that finds itself running to Asia for favors. And guaranteeing in return that it will work with everyone for stability. Lots of compliments out of Washington about how capable the Asians are lately. The Japanese have every incentive to (1) sell the tons of dollars they've acquired through 15 years of huge current occount surpluses with the U.S.; (2) sell the treasuries they own to raise money without using public (voting) money or devaluing the yen (and therefore Japanese savings); and (3) buy gold at these levels to restore confidence in their financial system. None of this is in the U.S.'s interest or in the interst of the purveyors of paper currency. Question is: will Japan and Washington make amends?