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To: festus
I suspect you are at least partly right. For years, the Bank of Japan has begged the U.S. for help in coordinating policy against the Chinese Renbei, which is pegged to the U.S. dollar.

And for just as many years, Greenspan and the Federal Reserve cabal have been loathe to stem the stampede of American investment in and cheap imports from China, lest their globalist masters complain.

However, with the growing national debt and the Japanese preference to park their excess capital in America versus some other country, makes a closer partnership absolutely essential. In fact, this may have been the Bank of Japan's demand this time in return for massive dollar buying. Buying a falling currency otherwise makes no sense.

4 posted on 05/24/2003 8:05:08 PM PDT by Vigilanteman
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To: Vigilanteman
Buying a falling currency otherwise makes no sense.

I'm no expert, nor do I play one on TV. However, at least one of the greatest export competitors to the Japanese is the Chinese. As was pointed out, the Chinese Yuan is tied to the US dollar. If the US dollar falls against the Yen, or the Euro, or the Australian dollar, the Chinese Yuan falls by the same amount. The US dollar was falling against the Yen, and the Japanese exporters were screaming bloody murder, so the BoJ purchased huge amounts of US government debt to prop up the dollar's value, at least vis-a-vis the Yen, to reduce the Yen's strengthening against the Yuan. My 2 cents.

5 posted on 05/24/2003 8:12:31 PM PDT by DeaconBenjamin
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