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Gold/Mining/Energy : Gold Price Monitor

GDXJ 124.11

-13.6%

4:00 PM EST

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To: long-gone who wrote (86300)	6/3/2002 10:54:41 AM
From: Ahda	Read Replies (2) of 116943

At present he is right and the market changes daily tinkering with currency isn't going to increase growth but create more risk all across the board. Japan feels by creating a lower yen in relation to the US$ they increase their selling ability but the US has the same problem as both nations labor rate is very high. When the labor rate is so high opportunity costs a higher price. All the dikering in the world is not going to solve the problem of over evaluation of labor. Pe ratios attempt to solve that by projecting forward but to meet those projections labor must be reduced. Wages are not being reduced but employment opportunities are shrinking at the same time inflation is a must or the fear of a death spiral sets in. It is a shade more complicated i think than it was. Japan was once capable of producing low cost technology products now this advantage is no longer hers. Rather than letting cost decrease and move through an internal recession she as we try to avoid any such distasteful event. US has no choice but to inflate as our private debt factor for is way to high. There will be lots of dickering going on however this becomes negative for both nations corporations where Zardoz sees three to four months before pick up i think that it is more apt to be much longer than that as you have forces working against corporate growth and the hedging of currency means costs will go up.

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