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To: Broken_Clock who wrote (13334)	6/17/1998 11:51:00 PM
From: ahhaha	Respond to of 116762

Rubin claims the Treasury took the action not to lower the dollar rather to support the yen. You could say that was double talk, but there are other currencies. What I mean is that the US would not opt for a concerted effort to lower the dollar to prop the yen. That would induce inflation in the US. That's the last thing they want. WASHINGTON, June 17 (Reuters) - Federal Reserve Vice Chairwoman Alice Rivlin said Wednesday's intervention in the currency markets by the United States underscored U.S. concern about Japan's economy. ''Most people agree that currency values are determined by fundamentals and not by intervention by governments. But it is certainly a symbolic action with the United States concerned about Japan and wanting to help,'' Rivlin told Reuters in an interview. Noting the effect of the intervention in the markets, Rivlin later added: ''I don't mean that it doesn't have real effects. The yen is back at 137.'' She said intervention on currencies markets was useful in influencing market opinion about a currency. ''If the fundamentals are out of line, intervention is not going to change that, but it can be useful in changing psychology.'' Do you notice how she is covering herself? It is an error to show your hand by "yen support" and then have your vice chairman come out and admit it is useless. I'll bet she got hell for that comment. It shows that they know the dollar intervention is a sham. The market knows it too. Summers is doing damage control. He has to come up with something better than fiscal policy directives else after the Rivlin muff, the market will jump on the yen but hard. So, do you believe that the hand waiving yen support shows that the administration's yen support intentionality is above zero? Or is it a bluff that will generate a below zero expectation? That is, the administration's real intent is to raise the dollar albeit slowly.