OBSERVER: NO SIGN PRESENT CRISIS TO BE REPEAT OF 1997 MELTDOWN

Jakatta, Oct 10 (ANTARA) - Economic observer Tony A Prasentyantono said here on Friday the current crisis had not yet led to a situation like in the 1997 crisis.

"I have not seen a sign showing that it is going in that direction. There is indeed the potential but I still have hope that the crisis which comes from the US will be overcome or at least mitigated," he told ANTARA.

He said the US government would be helped by big countries in Europe, Japan, Britain and even China to overcome the challenge.

"The Chinese government which has more than US$1.6 trillion in foreign exchange reserves, for instance, is expected to help by buying T-bills to be produced by the US government to finance its US$700 billion bailout plan," he said.

He said the current crisis had to be overcome not only by the US alone but also jointly by other countries.

"If the US economy goes bankcrupt it will affect the world. Based on this assumption, I believe a deeper crisis will be prevented," he said.

He said it was hoped the crisis would also make the US unwilling to continue its wars. "This will be good for the global economy," he said.