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Pastimes : Clown-Free Zone... sorry, no clowns allowed

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To: Bert who wrote (169127)5/30/2002 9:50:32 PM
From: rolatzi  Read Replies (2) of 436258
 
I hate to have to parse Kudlow but his argument is that it is time to get back into the stock market.

So right now, the clear message of this year's gold rally is that there's been a
shift in Federal Reserve policy from deflation to a certain amount of reflation.
Essentially, the gold spike points to a big Fed policy change: the basic money
supply, or monetary base, controlled by the central bank has stopped
shrinking and has resumed a more normal rate of increase. This is welcome news.

This means a good deal for the economy and the stock market. It means that
businesses will gradually recover from a nasty deflationary credit crunch, and
it signals an end to the business contraction. Already, industrial production
and capital-goods orders are turning up. And with lower tax-rates on small and
large businesses in place, this recovery process will receive the nurturing it
needs.
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