Theos-Talk Archives (June 1998 Message tt00601)

I have posted some info on the Asian Financial Crisis to TI but was beaten
down by some pro-free trade people. As an Australian we also face this
crisis , our dollar is in freefall and the backlash has been seen recently
in the Queensland State Elections. A new extremely conservative right-wing
party - One Nation has taken 22% of the vote in its first ever run. They
are anti-immigration, pro-trade barrier, pro-gun etc. Political Correctness
and Cultural imperialism are now facing a worldwide backlash.


Darren

At 10:24 AM 6/24/98 -0500, you wrote:
>I am posting this article to give all of you on this list a
>little peek into the risks and dangers of the international
>financial situation. It seems that the karma of collective
>greed returned to our doorstep.
>
>Govert
>
>>Note: The June Issue of McAlvany Intelligence Advisor
>focused on this issue
>>- how the Asian financial meltdown is heading toward
>America.  There are
>>many other highly regarded economic guru's who are saying
>the same thing.
>>For example:
>>
>>   "I have never read of, or seen such a total economic
>breakdown and
>>massive destruction of wealth as has occurred, against all
>expectations, in
>>Asia in the last six months."  - Marc Faber, The Gloom,
>Boom, and Doom
>>Report (2/12/98)
>>
>>   "If China and Japan come unglued, you're looking at
>something that will
>>dwarf the depression of the 1930's."  - Doug Casey,
>International
>>Speculator (2/19/98)
>>
>>   "The excessive credit which the Fed pumped into the
>economy (as they've
>>been doing) spilled over into the stock market, triggering
>a fantastic
>>speculative boom.  Belatedly, the Federal Reserve officials
>attempted to
>>sop up the excess reserves and finally succeeded in braking
>the boom.  But
>>it was too late.  By 1929 the speculative imbalances had
>become so
>>overwhelming that the attempt precipitated a sharp
>retrenchment and
>>consequent demoralizing of business confidence." - Alan
>Greenspan, 1966
>>
>>   As you may well know, World Wars I & II followed global
>economic
>>debacles.  The power elite have been counting on economic
>"leverage" if not
>>financial terror to take over the huge new markets in China
>just as they
>>leveraged financial control of industries and markets in
>Europe and Japan
>>(Trilateral Commission) following World War II.  Keep in
>mind that
>>desperate fallen ones do desperate things; make the calls
>to bind these
>>forces of anti-Christ who would create and manage crisis
>right into their
>>New World "Odor".  - C.R.
>>
>>-------------------------------------------- article
>follows:
>>
>>Inside Track On World News
>>By International Syndicated Columnist & Broadcaster
>>Eric Margolis <margolis@foreigncorrespondent.com>
>>
>>THAT NASTY SINKING FEELING IN TOKYO
>>By Eric Margolis 21 June 1998
>>
>>Asia's financial crisis, dismissed as `a glitch' only a few
>months ago by
>>President Bill Clinton, went critical last week, sparking
>an international
>>economic emergency that threatened to collapse world stock
>markets and
>>bring on a global depression.
>>
>>Japan's once mighty yen, down 40% in value over the last 12
>months,
>>continued its sickening drop. Last Monday, it hit a new low
>of 146 to the
>>dollar, as speculators and investors dumped yen for US
>dollars.
>>China issued an ultimatum. If the yen sank below the
>critical red line of
>>150, China would devalue its so-far steady currency, the
>yuan, to keep it
>>competitive with the falling yen and other sinking Asian
>currencies.
>>Devaluation by China would ignite another round of
>competitive devaluations
>>by its Asian trading partners and export rivals, producing
>rounds of
>>ruinous devaluations economists call `beggar they
>neighbor.'  Just such
>>reciprocal devaluations caused the 1930's world depression.
>>
>>On Wednesday of last week, the US and Japan's central banks
>dry-gulched
>>speculators. They bought US $4 billion of yen, driving the
>dollar down and
>>pushing the yen up 5%. Stock markets rallied. Anti-yen
>speculators suffered
>>huge trading losses. The most capable member of the Clinton
>Administration,
>>Treasury Secretary Robert Rubin, had averted disaster.
>>
>>
>>But Japan still faces the danger its painful recession may
>turn into
>>raging depression, or even financial collapse. Japan, the
>locomotive of
>>Asia's once vibrant economy, has run out of steam. Japan's
>overheated
>>bubble economy, based on rampant land speculation, reckless
>loans, cheap
>>money, shadowy accounting, and incestuous relations between
>businessmen and
>>politicians, burst eight years ago. Today, Japan's
>shrinking economy is
>>left with tottering financial institutions, huge debts and
>domestic bad
>>loans galore; industrial over-capacity; and tens of
>billions of outstanding
>>loans to bankrupt Asian nations like South Korea and
>Thailand.
>>
>>Western financiers demand Japan effect sweeping structural
>reforms that
>>include liquidating insolvent companies, allowing foreign
>institutions into
>>its financial system, firing redundant workers, opening
>domestic markets to
>>imports, and conducting business and accounting by US and
>European standards.
>>
>>Japanese are reeling under these assaults, and deeply
>confused. When the
>>yen was mighty, gaijin nations accused Japan Inc of being a
>financial
>>Yellow Peril bent on buying up the world. Now that the yen
>has sunk,
>>foreign critics accuses Japan of wrecking the world
>economy. Tokyo is being
>>bombarded by conflicting economic demands and advice from
>abroad.  Still
>>emotionally crippled by its defeat in World War II, Japan
>twists in knots,
>>trying to placate all it critics.
>>
>>Prime Minister Ryutaro Hashimoto promises to close weak
>banks and clean up
>>their US $650 billion in bad debts, deregulate business,
>and use tax cuts
>>and public works projects to stimulate the economy. All
>these remedies make
>>sense, save public works spending, which only enriches
>>politically-connected contractors.
>>
>>But nothing happens quickly in Japan, where bureaucrats,
>special interests,
>>local politicians, and custom, combine to frustrate change.
>The idea of
>>firing hundreds of thousands of unneeded workers, and
>closing venerable
>>firms, is simply anathema to Japan. At heart, Japan is a
>farming village,
>>writ large. Everyone tries to share the pain during hard
>times - better
>>less for all than none for many. Mass firings and business
>>closings are personal disgrace for company directors, an
>anti-social act.
>>There's no place in Japan for corporate mass executioners
>like America's
>>`Chainsaw' Al Dunlop, who boasted of cutting 15,000 jobs.
>>
>>Efforts to revitalize the economy by stimulating consumer
>spending are
>>being thwarted by the deep conservatism of Japanese.
>Japanese consumers.
>>hate borrowing, and mistrust stocks and bonds. When times
>are tough, they
>>increase savings, putting the funds into Post Office
>savings accounts that
>>pay under 1% interest. Like farmers everywhere, Japanese
>bury their savings
>>in the ground.
>>
>>A depressed yen will cause US labor unions to renew charges
>Japan is
>>`flooding' American with cheaper goods, and demand trade
>restrictions.
>>Worse, Asia, which accounts for 40% of Japan's commerce,
>has no cash to buy
>>goods from Japan, or repay Japanese loans. Japan's imports
>from Asia are
>>down 15%. So , at best, Japan and Asia, with the important
>exception of
>>China, appear headed for a long recession.
>>
>>
>>If Hashimoto's current rescue package fails and recession
>turns to
>>financial melt-down, as the Chairman of Sony recently
>warned might happen
>>-with startlingly un-Japanese candor, western stock
>exchanges will stagger.
>>If Japan's cash-crunch worsens, Japanese banks may begin
>cashing in the
>>hoard of US Treasury and Canadian securities they hold,
>plunging North
>>America into a monster liquidity crisis.
>>
>>Even experts don't understand the ramifications of our new,
>intermeshed
>>global economy, where financial storms race at the speed of
>light, leaving
>>ruin in their wake. Asia's banking crisis has undone
>governments in
>>Thailand, Indonesia, and Korea. Continued economic and
>social stress may
>>produce extreme political reactions across Asia - including
>Japan.
>>
>>Alarmingly, Asians increasingly accuse westerners seeking
>to take over
>>their nations by financial imperialism, blaming Wall Street
>for wrecking
>>the region's once soaring economies. The Nazis, recall,
>came to power as a
>>result of the 1930's depression, and the financial collapse
>of German
>>industry.
>>
>>Bill Clinton, with Monica much on his mind, visits China
>this week, right
>>into the eye of the widening Asian financial hurricane.
>Some glitch.
>>
>>Copyright eric margolis 1998
>>
>>***********************************************************
>*****************
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>
>
>
>
>
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