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Technology Stocks : Qualcomm Incorporated (QCOM)
QCOM 174.01-0.3%Nov 14 9:30 AM EST
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To: limtex who wrote (114569)2/27/2002 10:32:07 AM
From: Jim Willie CB  Read Replies (2) of 152472
 
ended gold carry trade + zero real rates ==> natural resources

two welldone articles from Zeal Intelligence:
www.zealllc.com/commentary/goldcarry.htm
www.zealllc.com/commentary/realgold.htm

first explains gold carry trade, now done dead gone kaput
that suppressed gold prices as central banks lent out their gold to bullion bankers for a mere 1-2% in order to stifle gold investments, and thus invite a paperchase stock bubble
they essentially enabled the gold market to "look" as if it had twice as much gold in supply, as both bankers showed gold on their books, and central bankers also showed the same gold on their books (as loans)
that is done dead gone now, so the lid suppressing gold has been removed

second explains how real rates of interest are now zero, thus encouraging a counter move widely into real assets, natural resources, and away from paperchase stocks
rates of return for stock equity should be small for a while
rates of return for debt are miserable now
that leaves the old standby remaining: hard assets
and some like gold and silver have already responded

by "old standby" I refer to the last 3000 years
the New Economy has not yet displaced investment
only added a rollercoaster to it in the form of paper fraud

very interesting stuff
/ jim
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