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To: geewiz who wrote (17020)	1/27/1999 9:57:00 AM
From: Lucretius	Read Replies (1) \| Respond to of 86076

1997 was closer 1927 and 1929 is closer to 1929 cause the digits say so (G)

To: geewiz who wrote (17020)	1/27/1999 11:30:00 AM
From: Defrocked	Respond to of 86076

The ultimate impact of an "infusion" of Japanese banking reserves depends entirely on how they choose to finance it. There are only three ways a government can finance its operations: taxation, borrowing, and/or printing money. Currencies, in fact, tend to trade on the perceived relative strength of their governments and their ability to finance their regimes: (1) A strong government can tax its constituents, finance through borrowing, or print money. (2) A moderate government can borrow or print money. (3) A weak government can only print money. I don't think the Japanese economy is in any position to absorb additional taxes so increases in governmental borrowing, e.g. Resolution Trust type funding, may be in the works. Many economists have been encouraging vast money growth increases which may also occur. Note that the yen has moved 1.70 higher against dollar since the announcement. I don't know the answer to your percent of total reserves question and wish I knew if a '29 type depression was a certainty or not.<g> My bets are that the Fed will attempt to quickly inflate its way out of serious, long term difficulties but a 20% to 30% stock market correction may be tolerated by AG. Good luck.