Japan, Jude's despair

[Brad Mayer]

You know boddi, you might have a point here:  Tokyo is betting their bluff 
won't be called.  Why? Because the only ones dumbass to call it would be 
Da'murakins.  They're really betting the Security Treaty with Washington, 
i.e, unlike Europe, where Washington can whipsaw between nation-states in 
NATO, Japan is basically it for Washington in Asia - the other 
"indispensable country".  Look at how Bush shrinks from "economic 
lectures".  He has to if he wants to up the pressure on China.

So the Treaty starts to make economic sense.  A kind of reverse 
collateral.  The flip side is not dumping US TBills.  Tokyo won't do a 
massive dump - of, if they do, it will indicate a profound, historic change 
in Japans' foreign policy.  I'm betting against it - but we'll see.

-Brad Mayer


>Seemingly Japan will not go broke piecemeal.  The inter-connected Japanese
>financial system is daring the world to declare that the whole thing is
>broke.  They may find takers for their dare if they don't watch out.
>
>
>         yours as ever,
>
>                 boddi
>