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Pastimes : All Clowns Must Be Destroyed

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To: pater tenebrarum who wrote (34590)5/22/2000 10:20:00 PM
From: Activatecard  Read Replies (2) of 42523
 
From Mr. MOTTO

Gold or Stocks: Which Will It be?

Would you feel it more important that the U.S. sharemarket be supported, or that the price of gold be suppressed?

It's my opinion that a substantial rise in the U.S. dollar price of gold is the more important consequence for the current global establishment.

As I attempted to note a few weeks ago, the G-7 functionaries are very serious about this evolution. And what must they do in order to prevent loosing control of gold's market price via an inflationary epsisode and, quite possibly, a decline in the forex value of the U.S. dollar?

"Raise U.S. interest rates, and raise them aggressively as long as published statistics display inflationary circumstances that threaten a breakout in the price of gold.
Does all of this grow the U.S. monetary base at the same rate, or a lesser late? Lesser, of course. And, indeed, if it was loose monetary policy that's fueled the current stock bubble, the sharemarket will come down correspondingly.
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