U.S. foreign debt

Rakesh Bhandari bhandari at phoenix.Princeton.EDU
Sun Sep 26 11:20:48 PDT 1999


I still haven't read Gowan on the role of the US Treasury in forcing that reversal as a way of bring SEAsia to its knees. Boddi used to shoo-shoo such conspiracy theories. I guess I am coming across to seeing your point. Plus, like SE Asia, much of America's debt is in short term securities, making the US all the more vulnerable. It is however plausible that the US asset market will resume its upward march soon (the Nikkei seems to me headed for another nosedive), the dollar will reach for the stratosphere, real producers will collapse, and the breakdown will come from the real side of the economy (due to both the rising dollar and no export growth due to stagnation abroad). In this way, the problem would come about from the real not the financial side as in SE Asia, no?

Yours, Rakesh



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