Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: MikeM54321 who wrote (5454)	8/12/1998 12:11:00 AM
From: Joseph Beltran	Respond to of 9980

Mike, we don't know exactly how that "intervention" went down. we were told (I seem to recall) that it was a joint u.s./japanese intervention and we were also told that the u.s. had "reluctantly" agreed to go along with it because hashimoto had promised SWIFT action in terms of policy IMPLEMENTATION. Rubin was against u.s. intervention. another unfullfilled promise by the japanese. we're fast approaching the ninth inning here: mark my words: by its inaction japan is going to throw the entire world into a recession. greenspan was wrong: the risk of a recession hitting our shores (and inevitably the balance of the world's economy) is greater than the risk of inflation. when that happens our politicians won't be talking about what to do with the "projected" budget surplus because there won't be one. we'll be back to big time deficit spending. regards

To: MikeM54321 who wrote (5454)	8/12/1998 1:25:00 AM
From: Frodo Baxter	Read Replies (1) \| Respond to of 9980

>I don't understand how the economist can say, "waste its money?" What Rubin does is done in secrecy, so I thought. Who's to say the US didn't make money off his trade(s)? After all, it was a "relatively" small U.S. intervention (estimated at $2 billion) that sent the yen from around 146 to 136. Who's to say the US didn't cover the trade at a profit. You have several deep misconceptions about currency interventions. Try these links: ny.frb.org ny.frb.org