Pacific Stars And Stripes Newspaper Archives Nov 7 1982, Page 21

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Pacific Stars And Stripes (Newspaper) - November 7, 1982, Tokyo, Japan 22 business Pacific stars and stripes november 1982 report ties critical new York up the United states and it found Little substantial Progress in resolving there is nothing More powerful to Speed pressured by a worldwide economic two major disputes japans billion Trade japanese defense spending than unemployed Auto face a critical phase in Trade and defense disputes surplus with the United and Washington workers in he some folks think that could disrupt their traditional postwar demand the japanese shoulder much More of the its Good politics to be a Harvard University report has Burden for Pacific the Pentagon wants Japan to protect sea lanes one can no longer regard disputes out to nautical Miles from but impatience in the Trade or Security areas As holding despite a commitment to a five year defense significance Only for those two the japans military allocations remain said James a staff member of the Senate armed services com the facing their own economic Are beginning to see american with their consensus style government As a sign that they can no longer count on the United 181page report they have permanently entered the critical Eye of world the by the Harvard program on Japan relations warned american leaders against imposing quotas or other restrictive legislation against the import of japanese cars and electronic the released at a seminar attended by diplomats and business and government urged a cooler and More balanced approach by Washington and without some of the experts Japan might consider pursuing a More Independent course from the United states than the one it has followed since the report noted enormous strains japanese politicians Are agonizing Over whether such Blue water capability projecting Power beyond coastal Waters violates the postwar japanese Constitution Banning offensive we must make Clear japanese defense strategy and make Clear our military said Kiichi chairman of japans Nomura research if Washington continues pushing Tokyo he Japan could find its Industrial establishment emboldened enough to begin producing its own military hardware and take a More Independent the panel also pulled no punches in assessing tense Trade awash in a sea of japanese electronics computers and Ameri can red the present Trade disputes have reached a critical the report citing american pressure on Tokyo to open its doors to Competition Harvard professor Michael during the in agricultural especially seminar at the Japan linked economic the key it is whether the United and Security concerns and suggested that states will continue to be patient with Japan or relations Between the United states and its major continued worldwide recession could bring about impose protectionist some of which is Pacific Sharp Domestic pressures in both already making its Way through n fed acts to bail out sick but veils its intention by Hobart Rowen Washington Post new Orleans not a moment too the Federal Reserve Board has switched its Basic policy it is putting aside the Battle against inflation which at the Cost of High and with the Aid of lower food and Oil it has won and is concentrating instead on the Battle against an incipient Depres to state it As simply As the fed wants to get interest rates Down further and keep them there commentary for a because the Economy is so dangerously it is too much to expect Federal Reserve Board chairman Paul Volcker to describe the new strategy in such Stark he must pay homage to deeply imbedded fears that easing of the repressive policy the fed has been following since october 1979 will renew to preserve the feds mythical Credi he must say that Over the Long term there has been no change in the Basic thrust of Reserve Board the move has nothing to do with although cynics will surely argue that the feds move is parallel to an easy Money switch in 1970 that is popularly supposed to have been put in effect to help president Nixon overcome a so the fed describes what it did in the lowest key terms but Wall Street is Able to read the its a Basic switch in Salomon expert Henry Kaufman said in a phone the fed has veered away from a monetarist but it remains to be seen How far they will take at a meeting Here of paper manufacturers whose like most has been depressed by High interest rates and dwindling consumer sales the feds move is naturally big a businessman wonders whether the feds new policy will regenerate an inflationary Cycle of prices and interest rates a question that reflects a genuine concern among businessmen and Consumers who have seen inflation endure for so the answer is that unemployment has now climbed so and the use of Industrial capacity has drifted to such a Low that the Economy needs and can absorb a stimulus for a Long period before the inflation rate turns up what the Federal Reserve Board did last month when it met with the several presidents of the Federal reserves regional Banks was to get its priorities led by vol the fed decided to expand the growth of the Money Supply enough so that interest rates would go Down and stay Down until the Economy begins to show some signs of Volckers month record explanation of the switch is that weekly Money Supply figures will be distorted for a time because of the maturing of billion in Al savers and by prospective changes in the Law covering Banks and saving and Loans institutions that will allow both to sell Mon eym Arket funds at competitive rates with the Mutual funds a slavish attention to the Low growth Money Supply targets that were set earlier could have acted As an unintended Brake on the that is but the fed could have dealt with this technical problem without changing its entire policy it is As Clear As it can be that the fed is now desirous of achieving easier interest the downward thrust of the Economy is even More decided than it was in we have seen not Only a record wave of corporate the highest jobless level in 42 years at but a rickety inter National financial Structure that comes close to some of the dangers of the president Reagan has taken to suggesting that All of the blame for the economic mess should be Laid on the unemployment was percent when he took he so he offers to take responsibility Only for the other Points on the unemployment to be the democrats must share responsibility for High unemployment Job As Sar Levitan and Clifford Johnson pointed out in a recent new Republic have been eroding since the late 1960s a period that includes the Carter but Reagan Doest understand the scope of his own each Point on the unemployment Index amounts to a billion charge against the Federal budget in lost taxes and larger unemployment compensation and related so the Points of unemployment for which he admits responsibility comes to an annual budgetary Cost of about or half of the staggering Federal the feds emergency easier Money Rescue operation of the element feeding the Boom in Wall on a Day that the Dow Jones Blu Chip Stock Index punctured the 1000 Barrier essentially because the Economy is president Reagan touted the number to a political rally As evidence that his own policies were this is an astonishing exercise in political the Market is rallying because reaganomics has and both the president and the fed have reversed course the president on and the fed on its Money Supply

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