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Re: Japan



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There is no doubt about it....Japan is in a recession.  I think the U.S.
stepped in because of a fear that China might possibly devalue.  They have
been rattling the sabres lately that indicated they will do so.  Our helping
support the Yen is only a temporary stop-gap action.  The real problem in
Japan must be addressed by Japan....their low interest rates and returns on
capital are not conducive to attracting new capital nor does it help retain
capital which is fleeing to the U.S. for better returns.  Until Japan does
something positive for their economy, the Yen will remain weak vs the Dollar.
Our support of the Yen is not the answer....Japan must get its act together!
Only when the Yen stabilizes will the threat of a Chinese devaluation go away.
And only then will all the major players all feel comfortable and not
threatened. 

Jerry