Temporality and NetworksHi Brian,

Thanks forthis.

I did someresearch to see if there were any other opinions on the subject.I was 
able tofind this commentary;

http://www.ips.org.sg/pub/kishen/pa_kishen_Is%20There%20a%20Case%20for%20an%20asian%20bond%20fund.pdf

Amongstseveral points and insights identified in the hyperlinked text, probably 
themost interesting was the author?s postiion indicating a need for 
Asiangovernments to diversify away from bank lending and towards bond 
financing. Bonds,as opposed to banks, offer more liquidity and more opportunity 
forsecuritization. This is probably also a indication that Asia might be 
interested incentralazing their monetary policy. It would be a US dollar bond 
derivative more or less.

At thispoint, especially since yesterday and considering recent movements by 
theEuropean Central Bank with respect to LIBOR spreads and general 
liquiditymalaise, investors are already fleeing the Euro in forex markets and 
purchasingyen and remnibi as flight to quality. From what I understand, China 
stillmaintains the highest trade surplus of any Asian economy, and hence, it 
makessense that their curreny would be desirable as an alternative to the 
ECB?smonetary problems which seem to be on the horizon.

Thejapanese story is very stimulating, and I?m sure that the rest of the Asia 
would like to be in a position tobenefit from the extraordinary capital surplus 
that has developed following theupheaval in japanese credit and banking during 
the late 1990?s.

Itdefinitly isn?t a surprise, that given the level of domestic violence 
againstthe Thai government as seen in recent reports coming out of that 
country, thatfinancial instability is probably not that far behind, and hence 
it is probablyin the interest of the weaker currencies in the region to attach 
themselves to thestronger.


/*Chad Scoville


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