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 : The Stock Market Bubble -- Ignore unavailable to you. Want to Upgrade?

To: Wren who wrote (2434)	12/21/1998 4:28:00 AM
From: paulmcg0	Respond to of 3339

The article that you mentioned talks about the collapse of the Japanese economic system. Here's further proof of this, taken from the Monday (12/21) edition of Asahi newspaper (http://www.asahi.com/english/enews/enews.html), showing that the Japanese government will use deficit spending to cover an astonishing 38% of their national budget: ================================================== '99 budget to hit record 82 trillion yen The government plans to spend the largest amount ever to revive the ailing economy. Negotiations will continue until Friday. is decision day. Asahi Shimbun The government today approved an 81.8 trillion yen draft budget for fiscal 1999, the largest ever, to stimulate the economy. The draft budget, approved at an extraordinary Cabinet meeting this morning, was immediately presented to ministries and agencies, which will discuss its contents with the Ministry of Finance until Thursday or Friday morning. The government on Friday will decide the final budget plan for fiscal 1999 and present it to the next ordinary Diet session, starting Jan. 19, for deliberation and approval. The 81.8 trillion yen general account expenses, up 5.4 percent from the corresponding figure for this fiscal year, revolves mainly around three factors--general expenditures, principal and interest payments of previously-issued national bonds, and tax grants to local governments. General expenditures--the policy-oriented portion of budgetary spending, such as public works projects and social welfare services--amount to 46.8 trillion yen, up 5.3 percent from this fiscal year. It is the first time in 19 years that the growth rate for general expenditures has topped 5 percent. The principal and interest payments of previously-issued national bonds amount to 19.8 trillion yen, up 14.9 percent. Of that amount, the government has earmarked 2.5 trillion yen to protect depositors of failed banks such as Long-Term Credit Bank of Japan and Nippon Credit Bank. Tax grants to local governments will decrease by 14.8 percent to 13.5 trillion yen. The decline is due to a fall in national tax revenues. Government revenues for fiscal 1999 will depend heavily on the issuance of new national bonds. Estimated tax revenues will fall 19.5 percent from this fiscal year to 47.1 trillion yen, largely because of the 5.6 trillion yen cuts in corporate and individual income tax. It is also due to a drastic decrease in revenues from corporate taxes resulting from recession. It will be the first time in 12 years for annual national tax revenues to fall below 50 trillion yen. The tax revenue shortage has led the government to issue new national bonds worth 31 trillion yen, accounting for 37.9 percent of the total revenue of fiscal 1999, a sharp rise from 20.0 percent for this fiscal year. It is the first time in 19 years that the percentage figure has exceeded the 30 percent mark.

To: Wren who wrote (2434)	12/21/1998 1:46:00 PM
From: Terry Whitman	Read Replies (4) \| Respond to of 3339

NASDAQ THDMAPFP Alert! The Nasdaq Composite has crossed over the dangerline- the THDMAPFP (200 dma plus 15%). Current 200 day MA IS 1812. This makes today's (12/21) high, 2037, nearly 18% over the 200 day MA. My past studies indicate that once the NAZ crosses this line, it will return at least all the way back to the 200 day line. This is often not an immediate happening, as the market momentum often carries the NAZ higher (but never more than 22%). I must deduce then that the upside is limited from here to less than 5%, while the downside has much more potential. Have gone long gold (ABX), as a defensive measure. Will wait for a weakening in speculative issues before going short. TW