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Strategies & Market Trends : Currencies and the Global Capital Markets -- Ignore unavailable to you. Want to Upgrade?

To: Paul Berliner who wrote (1300)	2/25/1999 12:16:00 PM
From: Ahda	Respond to of 3536

Paul this is a good thought. I think sometimes to finance corproate through Japan low rates coud be real plus now with deterioration of the yen and play that end of the game too this currency issue is hell in my mind on the world markets. Did i make sense Paul?

To: Paul Berliner who wrote (1300)	2/25/1999 3:31:00 PM
From: N	Respond to of 3536

Paul, one interpretation of the weaker yen in current favor: _ _ _ _ Economist 2/20/99 Who prints the yen? ...Policy makers are...horribly split -- on the exchange rate, the policy of the BOJ..., and whether the government can keep spending its way out of trouble. Now the struggle has turned to control of the nation's money-printing press. Summary of Finance ministry trust fund bureau/politicians vs BOJ and Finance ministry budget bureau: 1. 12/22 finance ministry's trust fund bureau announces reduction of purchase of long term govt bonds...bond market rattled 2. November, fin. ministry's budget bureau annouces deficit to be 10% of gdp, and national debt would exceed output...under most favorable growth scenarios, new govt bonds expected to rise annually until 2004 3.Postal savings system conjectured to face payout crisis, needs to sell govt bonds 4. LDP in funk about high interest rates and high yen which threatens their stimulative fiscal spending...chief cabinet secretary Nonaka suggests BOJ buy bonds to finance deficit 5. BOJ says no...strongly advises fiscal discipline...argues loss of control of public spending inflatianary 6. So far BOJ won this one: 2/16 finance minister Miyazawa announced ministry would issue shorter term bonds and buy back longer term ones...and trust fund bureau would resume purchase of government bonds. Encouraged by US looking more kindly on a weaker yen, ministry says now favors depreciation. Round one. Yen and long term bond yields fell...BOJ got looser money policy without buying bonds _ _ _ _ Is the BOJ selling US treasuries? If not offset, would this not be stimulative at home, in contrast to their stance outlined in this article, that is, if the journalist got it anywhere near right? Nancy