Low Wage Pay Gains

[Henry C.K. Liu]

That is precisely my point.
Both the yen and the euro are not as important as hard statistics would suggest
because both Japan and Europe lack an internationalist culture as compared to the US.
The Asian crises for example, have caused both Japanese and European banks to
retrenched much more than American banks who seem to have a deeper commitment to
globalization.
The Japanese and Europeans, came in late, grew too fast and left early.
Also, if you look at Japanese and European businesses, their localization policies are
way behind America's.  It is a cultural problem.  America's multi-ethnic culture and
advanced in equal opportunity regulations in recent decades played a major role.

Henry

Dennis R Redmond wrote:


> On Sun, 7 Feb 1999, Henry C.K. Liu wrote:
>
> > Seriously, no doubt the euro is going to be important, but unless the Europeans
> > become more internationalist than they have been, the euro mya just go the route
> > of the yen.
>
> More internationalist? The EU is already the biggest single market on the
> planet, with the soundest asset base, the biggest banking system (assets
> of close to 11 trillion EUR, far larger than the US banking system asset
> base of around 3.7 trillion EUR). EU banks are the biggest source of
> capital to the world-economy, as BIS statistics on global lending
> (available over at www.bis.org in downloadable pdf format) show, far
> larger than Japan or the US. Latin America owes more debt to the EU than
> to the USA, and the EU is the biggest creditor in Asia, too (Japan is in
> second place, the US is a distant third).
>
> And then there's this myth that the yen, and Japan, is doomed. I'm
> collecting some stats on the Japanese keiretsu and will post those later
> today, but suffice to say that Japan Inc. is a very, very, *very* big and
> liquidity-flushed gorilla indeed.
>
> -- Dennis