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To: Hawkmoon who wrote (27997)	2/11/1999 9:34:00 AM
From: Enigma	Read Replies (1) \| Respond to of 116753

Ron <<Well Japan is an interesting case. They are in depression, that there is no argument>> I think the word 'depression' is used very loosely these days - surely you don't mean it? Depression like the 30s world wide? I think not - we'd would see pictures of soup kitchens, etc., etc. What is unemployment in Japan - surely nothing approaching the near 30% levels in the 30s? Not even 1/5 of it?? dd

To: Hawkmoon who wrote (27997)	2/12/1999 9:23:00 PM
From: PaulM	Read Replies (2) \| Respond to of 116753

The Japanese that are selling bonds are private entities--Banks and Life Insurers. They need to look solvent come March 31 (which suggests there will be plenty more of this to come over the next two months). On the other hand, the BOJ also has a much larger U.S. bond position of its own credited to its customer account at the Fed. The BOJ is not, and cannot, sell these en masse or the game is over (the game being the U.S. as buyer of last resort for Japanese exports while Japan is a major buyer of U.S. dollar, bonds). Considering the Japanese trade surpluses of the last decades, the Japanese must be asking themselves: surplus of what? At some point, the Fed will do what it does best: print our way out of this problem.