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To: Bobby Yellin who wrote (7033)2/1/1998 12:51:00 PM
From: PaulM  Read Replies (1) | Respond to of 116763
 
Bobby, nice point. What will happen in Japan will be closer to a margin call. And by the way, the Japanese lost 100's of billions, if not trillions, on the very same ireasuries through 1995.

The reason that Japan was willing to lend us so much money is that it was one of the strings attached for providing market for their mercantile economy (on a playing field favoring the Japanese). Purchase of treasuries was just the latest chapter in a deal that was really struck in WWII.