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

To: Zeev Hed who wrote (4841)	6/27/1998 12:20:00 AM
From: Stitch	Read Replies (2) \| Respond to of 9980

eev, I would love the benefit of your comments on this and anyone elses for that matter. Is this whistling as he walks past the graveyard at night? Best, Stitch reprinted from South China Morning Post for personal use only. Japan able to rescue itself, says 'Mr Yen' No help required: Eisuke Sakakibara BENJAMIN FULFORD in Tokyo Japan would use its vast reserves to rescue itself from economic turmoil, the senior finance official known as "Mr Yen" said yesterday. "I cannot completely rule out the possibility that Japan and Asia are caught in a downward spiral," Vice-Finance Minister Eisuke Sakakibara said. "Japan is the world's largest creditor nation," he said. "We do not need help from other countries. "We can use our own strength and our own money to revive Japan." Mr Sakakibara made the comments as the yen recovered slightly in Asian trading. News that the Long-Term Credit Bank of Japan was merging with Sumitomo Trust and Banking breathed some confidence into trading. The yen climbed to a high of 141.75 against the US dollar before easing in late trading. The merger gave hope that the Government was committed to a widescale reform of the indebted banking system. Mr Sakakibara said Japan gave Beijing "a lot of credit" for promising not to devalue the yuan. In return, Japan was doing its utmost to stop the yen from falling, he said. He cited recent joint intervention in foreign exchange markets and promised to "resolve the bad debt issue as quickly as possible and revitalise the Japanese economy". Mr Sakakibara dismissed the danger of capital flight out of Japan, saying once the yen weakened to a certain level, "there will be a flow of investment into Japan from overseas". The Vice-Minister also warned against "excessive pessimism". He repeatedly emphasised Japan was different from other Asian countries because it was a net lender, not a net borrower. "The world's largest debtor country is the US. If you remind yourselves of that fact, you will realise it is not logical to be too pessimistic about Japan," he said. "Japan has to become an engine for the rest of Asia," he said, suggesting public works, not tax cuts, would be the way it further stimulated its own economy. Although Japan was working on tax reform, he said: "We have no intention of promising a permanent tax cut.'