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To: Boplicity who wrote (50074)	7/7/1998 11:11:00 PM
From: Chuzzlewit	Read Replies (1) \| Respond to of 176387

I love picking your brain, it's synoptic arrangement is a lucent one. So how come my wife doesn't understand me? <VBG> Greg, re your fears about a rising yen: that is indeed an odd worry. Most people are more concerned with the continuing weakness of the yen, with the prospects of cheap Japanese goods flooding the market and the increasingly expensive US made goods choking off sales to Japan. First, the yen will see a sustained rise only when financial markets are convinced that it has acted decisively in dealing with its financial crisis. That minimally means restructuring the banking system, putting a permanent tax cut into place and eliminating anti-competitive, protectionist economic practices which sought to exclude certain imports. Undoubtedly, an increase in the yen will cause a flow of cash from the US equity markets to Japan and we could see a modest increase in interest rates. From an international finance point of view, Japan is one major key to revitalizing the Asian economy. After all, Japan is the second largest economy and the principal trading partner of the Asian Pacific economies. Given the fact that a significant portion of US high tech sales are made to Asia, not to mention other US exports, I think it's fair to say that Asian economic health is vital to the future of many US businesses. Anyway you look at it, healthy Asian markets will have a stimulatory effect on US business. So the real issue is to what extent revitalized Asian economies (not just the yen) will result in inflationary pressures here. At this juncture I think that worry is premature. TTFN, CTC