-Caveat Lector- <A HREF="http://www.ctrl.org/"> </A> -Cui Bono?- from: http://www.aci.net/kalliste/ Click Here: <A HREF="http://www.aci.net/kalliste/">The Home Page of J. Orlin Grabbe</A> ----- Yen Collapse Japanese Government Debt Under Credit Review So much for the myth of the "riskless" asset. Moody's Investors Service said on Thursday it was considering downgrading Japan's sovereign debt rating because of concerns over its rising public sector debt, among the worst in the industrial world. Public sector debt could worsen if structural reforms failed to move the world's second largest economy onto a stronger growth track, the major US credit rating agency said. The move deals a blow to Japan's efforts to revive its economy from its worst recession in half a century through a series of heavy fiscal stimulus packages that have pushed the government debt to around 120 per cent of gross domestic product (GDP). The Aa1-rating is Moody's second highest. The ratings agency downgraded Japan from Aaa in November 1998. The review was only for yen-denominated debt issued by the government and not a review of Japan's country ceiling and thus would not affect the credit ratings of bonds issued by private companies, Moody's said. Moody's confirmed that it had changed the outlook for the government's foreign currency rating to stable from negative because of the strong external position and the large pool of domestic savings. Analysts said they were not surprised that the move had been taken. It's a bit earlier than I expected. I thought it was coming -- not so much because of the debt situation but because the economic recovery has not been that strong, said Ron Bevacqua, chief economist at Commerz Securities in Tokyo. I thought it would be a two to three year process as opposed to now and obviously the debt question is central but perhaps the catalyst has been the more pessimistic view of the economy and the recent slide in bank shares. Moody's said it had decided on the review because Japan's public sector debt would soon be the highest, relative to GDP, among the advanced industrial economies. It recognised that financial system reforms had helped Japan's tentative recovery, but indicated this was not enough. However, it is unclear whether the reform and restructuring process will reach a critical mass to propel Japan's economy into a higher potential growth path, without which, Japan's public-sector debt problem should continue to worsen, it said. Japan's embattled government has acknowledged the difficulties of dragging the world's second-largest economy back onto a path of growth. It has said it expects a second consecutive quarter of negative growth for October-December, putting it back into technical recession after six months of suprisingly robust growth. With this action, overseas investors are expected to slow their aggressive (stock) investment stance in Japan, said Yasuyoshi Masuda, senior economist at the Fuji Research Institute. But given Japan's vast current account surplus and that it has the world's largest external reserves, the action is questionable, he said. Japan's external reserves stood at $293.15 billion at the end of January. The Financial Times, February 17, 2000 Money Laundering $7 Billion Laundered Through Bank of New York More free (seized) cash for the US government. A former employee of the Bank of New York and her husband have admitted laundering at least $7bn through the bank, much of it for Russian nationals hoping to evade customs duties and taxes. In a New York federal court, Lucy Edwards and Peter Berlin pleaded guilty to a range of offences. They included setting up a branch of a foreign bank without regulatory permission, operating an illegal wire transfer business, fraudulently obtaining visas, bribing an official, evading US taxes, accepting illicit payments and laundering them offshore. The confessions represented a major break in the case, described as the largest ever money laundering investigation. Until now, the couple were charged only with the relatively minor offence of operating an illegal money transfer business. The Russian-born couple surrendered to the FBI in a deal with prosecutors on Tuesday, after flying in from London. Federal prosecutors are likely to use their co-operation to secure further convictions. An FBI director said that "much remains to be done". Reports that they would admit they had bribed a BoNY official had sparked speculation that the conduct of the bank could again be questioned. But on Wednesday it emerged the employee in question was Svetlana Kudryavstev, a junior employee dismissed last September. The couple said they paid Ms Kudryavstev $500 a month to ensure the transfer business ran smoothly after they moved to London. Prosecutors have already charged her with lying to the FBI. According to the couple, the scheme began in late 1995, when Ms Edwards was approached by members of Russia's Depozitarno-Kliringovy Bank (DKB) to set up the accounts at the BoNY. She was working as a vice-president at the bank's eastern European division, and along with her husband was able to set up an account under the name Benex International in early 1996. Later that year, officers at DKB asked the couple to open a second account, which they did under the name BECS International. In autumn 1999, they said they would be acquiring control of Flamingo Bank, and would need a third account, which was set up under the name Lowland Inc. The couple said they received $1.8m in commissions, transferred to offshore accounts to evade US taxes. To prove money laundering charges, prosecutors must show the funds were the proceeds of illegal activity. They said the accounts had been used to facilitate criminal activities, including paying a ransom to kidnappers of a Russian businessman. The couple agreed to forfeit more than $1m in proceeds, a brokerage account and their London residence. The US has also seized $6m held in BoNY accounts. The Financial Times, February 17, 2000 ----- Aloha, He'Ping, Om, Shalom, Salaam. Em Hotep, Peace Be, All My Relations. Omnia Bona Bonis, Adieu, Adios, Aloha. Amen. Roads End <A HREF="http://www.ctrl.org/">www.ctrl.org</A> DECLARATION & DISCLAIMER ========== CTRL is a discussion & informational exchange list. Proselytizing propagandic screeds are not allowed. Substance�not soap-boxing! These are sordid matters and 'conspiracy theory'�with its many half-truths, misdirections and outright frauds�is used politically by different groups with major and minor effects spread throughout the spectrum of time and thought. That being said, CTRL gives no endorsement to the validity of posts, and always suggests to readers; be wary of what you read. CTRL gives no credence to Holocaust denial and nazi's need not apply. Let us please be civil and as always, Caveat Lector. ======================================================================== Archives Available at: http://home.ease.lsoft.com/archives/CTRL.html http:[EMAIL PROTECTED]/ ======================================================================== To subscribe to Conspiracy Theory Research List[CTRL] send email: SUBSCRIBE CTRL [to:] [EMAIL PROTECTED] To UNsubscribe to Conspiracy Theory Research List[CTRL] send email: SIGNOFF CTRL [to:] [EMAIL PROTECTED] Om
