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To: PaulM who wrote (10359)	4/22/1998 12:21:00 AM
From: Christopher JR Laughren	Respond to of 116762

_From Dines_ On Wall Street it is generally wise to avoid doing what everyone else is doing. We think it would be instructive for investors to challenge the current consensus about equities and gold. The prospects of achieving acceptable long-term results at the prices currently demanded for the average equity would seem far from assured. Gold company stocks, in contrast, offer a potentially fruitful area for investigation. Like life insurance, which is cheapest when it is least likely to be needed, insurance against inflation and financial distress -gold- can be purchased now very cheaply because the consensus holds it is not needed. Dennis Butler, BARRON'S, 23 March 98.

To: PaulM who wrote (10359)	4/22/1998 6:57:00 AM
From: robnhood	Read Replies (1) \| Respond to of 116762

Paul, <<Criticism of Asian IMF Bailout>> That article sounds like they see the picture pretty clearly IMHO.. One might assume that : If they don't get their way, they will let the market tank a bit to scare everyone into saying OK to a bailout.... When do these decisions have to be made by? russell

To: PaulM who wrote (10359)	4/22/1998 7:25:00 PM
From: goldsnow	Respond to of 116762

Economic crisis may force out Japanese premier By Juliet Hindell in Tokyo telegraph.co.uk THE Japanese Prime Minister, Ryutaro Hashimoto, is under renewed pressure to resign over his handling of the economy. A leading Japanese newspaper with close links to the government has called him "faceless" and "wishy-washy". The knives have been out for Mr Hashimoto within the ruling Liberal Democratic Party since the economic crisis began late last year. Although there have been rumblings that other influential politicians thought he should go, the party has bided its time. But yesterday's edition of the Yomiuri newspaper, which is closely affiliated to the grandees of the LDP, left no doubt that Mr Hashimoto will now have to fight for his political life. The front page article said: "Is the Japanese economy destined to share the fate of the Titanic? . . . Bring an end to faceless prime ministers." The article went on to accuse Mr Hashimoto of keeping a low profile at a time of crisis. The newspaper said that until recently bureaucrats had been in charge of the economy. But since a series of scandals had robbed the ministries of their credibility it was now time for politicians to take the lead. The chorus of disapproval was echoed in the higher echelons of business. Seiji Tsutumi of the Japan Association of Corporate Executives called on Mr Hashimoto to step down. He said the prime minister's economic policies had failed: "The market has presented him with so many votes of no confidence." The Japanese economy has been in trouble for more than six years but in the past six months it has been on the brink of a full recession. Negative growth is forecast, unemployment is rising and confidence in the financial system is at rock bottom. Mr Hashimoto has taken much of the flak. His handling of the situation has lacked direction and momentum. A series of packages, including one-off income tax cuts, has failed to have much impact. Behind-the-scenes manoeuvring to oust him has been increasing. A summit with President Yeltsin last weekend and other high-level international meetings may have saved him for a while but now it is open season. John Neuffer, political analyst at Mitsui Marine Research in Tokyo said: "This is a real body blow". He and others predict that Mr Hashimoto could be gone as soon as next month and most believe he will not survive after the Upper House election in July. A key hurdle could be an announcement expected tomorrow to revise the fiscal reform law, clearing the way for substantial tax cuts. It represents a policy U-turn for Mr Hashimoto.

To: PaulM who wrote (10359)	4/22/1998 7:31:00 PM
From: goldsnow	Respond to of 116762

Frenchman must get Euro-bank job, says Jospin By Susannah Herbert in Paris telegraph.co.uk THE French Prime Minister, Lionel Jospin, yesterday reasserted French claims to the most important job in Europe, the presidency of the European Central Bank, and threatened to use his veto in Brussels next month if he is thwarted. M Jospin told the newspaper Le Monde that France would blackball the appointment to the post of Wim Duisenberg, the Dutch central banker, unless he agrees to share his eight-year mandate with his French counterpart, Jean-Claude Trichet. Asked if the term could be cut in two as a compromise - with Mr Duisenberg being succeeded by M Trichet - M Jospin said: "That's the direction in which a solution could be found." His call for a compromise is a fresh indication of French determination to defy Germany and the Benelux countries in pursuit of its own perceived interests in Europe, despite recent rumours that the issue had already been settled in Mr Duisenberg's favour. The stance of M Jospin and President Chirac has provoked the anger of the Dutch Prime Minister, Wim Kok, who last week ruled out any compromise and threatened to veto M Trichet if France blocked Mr Duisenberg. M Trichet, the governor of the Bank of France, is the only candidate to have yet mounted a formal challenge to the Dutch contender. As president of the European Monetary Institute, the European Central Bank's predecessor, Mr Duisenberg was widely held to be the natural choice until the French proposed M Trichet last November, claiming that France should have the post as a quid pro quo for consenting to the basing of the new bank in Frankfurt. Germany and the Benelux countries, however, are all firmly in favour of Mr Duisenberg, an advocate of a tight monetary policy with close links to the Bundesbank. He is seen as the right man to reassure the German people that the euro will be as strong as the Deutschemark. They fear that any concession to French ambitions in this affair could mean that the single currency is launched in the shadow of national politicking and horse-trading, a bad omen for the independence of the new bank and the new currency. Mr Duisenberg has said a compromise would be "a very bad start" and Chancellor Kohl has described any deal as "absurd". There is no provision in the European Union treaty for the division of the Central Bank's mandate. But neither is there any clause that would prevent such an outcome. Any compromise would have to take the form of an understanding that Mr Duisenberg would step down from his post by the year 2001/2002 to make way for M Trichet. If no agreement is reached on May 2, when the European heads of state meet in Brussels to choose the countries that will adopt the single currency next January, the decision can be delayed until July. But all parties, including M Chirac and Mr Kohl, agree that this is far from ideal. If the decision is delayed, other candidates may be pushed forward for consideration, including the president of the Bank of Spain, Miguel Angel Rojo.

To: PaulM who wrote (10359)	4/22/1998 7:33:00 PM
From: goldsnow	Read Replies (1) \| Respond to of 116762

Dutch hit back in row over Euro-bank By Toby Helm, EU Correspondent, in Luxembourg telegraph.co.uk THE dispute over who should head the European Central Bank deepened yesterday as the Dutch Finance Minister, Gerrit Zalm, said failure to install his country's candidate would "be worse than losing to Germany in the World Cup". Mr Zalm, who is pressing the candidacy of Wim Duisenberg, head of the Dutch central bank, against a French campaign for Jean-Claude Trichet of the Bank of France, was speaking after European Union finance ministers said the row might not be resolved until the summer. Mr Zalm said the argument had become "a real problem" for all 15 EU countries which were keen to ensure the successful launch of monetary union on Jan 1 next year. It was time the French understood that most member states favoured Mr Duisenberg, who has strong German support, he said. "It would be very strange if the candidate with a massive majority is blown off the table." The argument seems certain to spill over into the Brussels summit on the euro next weekend and could drag on towards the Cardiff summit in June, which concludes the six- month British presidency. Andrew Gimson in Berlin writes: The state of Saxony in the former East Germany said yesterday it would vote against the euro unless Italy and Belgium guaranteed to cut their huge debts. The debt levels in both countries are more than double the Maastricht target of 60 per cent of GDP, leading to fears in Germany that the euro will be a weak currency.