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

To: Derrick P. who wrote (2280)	2/20/1998 12:16:00 AM
From: Stitch	Read Replies (4) \| Respond to of 9980

Derrick, An article in today's Straight Times states that Indonesia's high priced consultant, John Hopkin's Univ. economist, Steve Hanke, is insisting that Indonesia has no choice but to establish a currency board, and that time is "of the essence". "There is nothing to do in four months as you have reached the end game" he reportedly told Suharto. He went on to say: "under the current situation none of the preconditions in the IMF memorandum will ever be filled satisfactorily if the currency is not stabilized." "The only way you can stabilize it is with a currency board" "The necessary condition to fulfill and deliver IMF conditions is a currency board" he said. But what of the necessary reserves for such a system? Nothing was said in this press report. You may be right, it may have to come for his secreted away cash. Is there enough? I doubt if even he knows. Suharto is between a rock and a hard place. His country will flame if he doesn't pony up to the bar and let go of all those millions (billions?). Somebody said it earlier. Indonesia's only hope, in a sad irony, is the man that took them here in the first place. Best, Stitch