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To: John Hunt who wrote (13991)	2/11/1998 6:00:00 PM
From: John Hunt	Read Replies (2) \| Respond to of 18056

SCMP - Defiant Suharto warns of plot scmp.com << Challenges to President Suharto's 32-year rule mounted yesterday as the Indonesian leader warned of a plot to destroy the country's economy and send its currency crashing. >> << The leader of the 28-million-strong Muhammadiyah moderate Islamic movement, Amien Rais, earlier said the entire Government needed to be changed if the country was to forge on from the crisis. "Ideally, there should be a complete break with the past," he told the Jakarta Post. "But if President Suharto suddenly steps down and his cronies take over and apply the old management of the state, we may not be able to develop further." Mr Rais did not like the idea of revolution, but said peaceful change required a public prepared to wait and a government prepared to be flexible, conditions not apparent in Indonesia. >> Getting ugly. John

To: John Hunt who wrote (13991)	2/17/1998 11:52:00 PM
From: Thomas F. O'Connor	Read Replies (1) \| Respond to of 18056

John: Members of this thread might find this post that I made to the "Gold Price Monitor" of interest: Saturday, Feb 14 1998 10:22PM EST A momentous decision is being made in Jakarta, Indonesia this week-end. that will profoundly effect the economies of Southeast Asia and eventually the entire world.. The objective: currency stability. The opposing ideas to attain this goal are between a currency board as advocated by Steve Hanke and the economic plan as outlined by the IMF. The Hanke plan is described in an article to follow and the IMF plan is a plan in general of raising taxes and further currency devaluation. Both will cause much pain and suffering. However, I believe that the currency board will stabilize the currency, if not aborted by the politicians, and the IMF plan will fail, no matter what happens. Very little has been written in the print press about Steve Hanke and his advocacy of a currency board for Indonesia. However, here is an article that appeared in Thursday's Washington Post which relates some information about him: washingtonpost.com. This article appeared in today's Washington Post and gives some indication of the magnitude of the currency implications depending on which policy is adopted.: washingtonpost.com. Mr Hanke has shown great courage as an economist in taking such a strong stand in direct opposition to the policy of the IMF and his own Government. An understanding of the currency board concept can be gleaned from this article by Mr. Hanke in December 1995. It also discusses the different results obtained with a currencey board utilized in Argentina since 1991 and the results with a lack of one in Mexico in 1994. heritage.org. If the currency board concept spreads throughout Southeast Asia (Thailand is considering one) , it will ultimately have a significant effect on the Dollar and its relationship to Gold. But more on that later........