The meltdown has started in Asia – stocks collapsing with possible rate rise in Japan and China
Sam Adelton
Apr. 19, 2007

The stock markets all over the world are facing the chilling possibilities that China and Japan will simultaneously hike the rates. That is what G8 perhaps required of the Asian financial superpowers. That will ensure Yen’s and Yuan’s rise and fall in dollar. That in turn will help reversing the trade deficit.

However, the rate hike in Japan and China can have significant reparations in the deflation prone Japan and unemployment prone China. China needs twenty five million new jobs from the Western outsourcing to keep its laid off workers from Government enterprises to get reemployed. Japan’s deflation is not over yet. It is just a pause. The possibilities of rate hikes in the Asian economies are sending shock waves in financial communities all over the world.

The effect is bound to spill over to US and European markets. The stronger Yen can create a crash in the Japanese market. That in turn will lead the world stock markets in a complete tailspin.

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The meltdown has started in Asia – stocks collapsing with possible rate rise in Japan and China
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READ MORE>>

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