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To: jluker who wrote (39386)	4/13/1998 9:31:00 PM
From: j g cordes	Respond to of 58727

Interesting John, news for the rest of us when it counts.. was wondering why bonds had kicked up today, thought it might be worry over Japan selling to bolster yen strength for tax incentives to spur Japanese consumer,, jump starting their economy with savings from the US bond market.. Jim

To: jluker who wrote (39386)	4/13/1998 9:53:00 PM
From: j g cordes	Read Replies (1) \| Respond to of 58727

This is from the Financial Times.. on capital flows run amuck! "MONITORING: Global flows of capital 'need check' By Michiyo Nakamoto in Tokyo Japan's top financial diplomat yesterday proposed stricter monitoring of international capital flows through a global institution to prevent future currency crises like that in Asia. "International organisations should disclose their data much more than in the past, and institutions like the International Monetary Fund should monitor the flows of capital," Eisuke Sakakibara, Japan's vice minister of finance for international affairs, said yesterday. Mr Sakakibara emphasised that his prescription was not to control capital flows but to monitor them so that people "could at least assess the risks," he said. US officials including Robert Rubin, the treasury secretary, and Alan Greenspan, chairman of the US Federal Reserve, have added their voices to calls for a review of the world financial system. Mr Sakakibara said that an institution such as the IMF would be best placed to perform such monitoring. Although the Bank for International Settlements does monitor capital flows to some extent, that was insufficient, he said. The need for such monitoring stems from the fact that the Asian currency crisis is not an Asian problem arising from flaws in the region's economic structure but a result of the instability of global capitalism, Mr Sakakibara said. "This is a global crisis which could take place anywhere in the world. There may be areas where Asian capitalism needs reforms, but the basic nature of this crisis is of capital flows," he said. It was not appropriate to blame Japan for the crisis, as some in the west had been doing, Mr Sakakibara said. Not only had Japan provided the most aid to Thailand and Indonesia, it was, together with Australia, frontloading a $1bn second line of defence for trade financing for Indonesia. "Japan has been doing its utmost to help its Asian neighbours both in terms of providing funds and negotiating with the IMF. I want the Europeans to do more and I want the Americans to do more if they are so concerned about the Asian crisis," he said. The Europeans, for example, could provide money to Indonesia, while the Americans could activate the second line of defence, he said. Japan played an important role in helping to bring about the revised agreement between Indonesia and the IMF, he pointed out. "The worst of the Asian crisis is over," he said. "Four to five years from now people will be talking again about the Asian miracle."

To: jluker who wrote (39386)	4/13/1998 9:56:00 PM
From: Patrick Slevin	Read Replies (2) \| Respond to of 58727

Gee, who puts out that report? It still gives me mixed signals as to why bonds are up a lot tonight, as well as the last half hour of RTH today. Japan should have bought the Yen to avert a trade war. Why would the Fed "reward" them. Well, I suppose a Nikkei collapse results in Japan selling off US Treasuries to help cash flow. Man, this is worse than E-Wave. I'm missing a piece of the puzzle somewhere. I'd like to see this commentary regularly, where'd you get it John?