Stockman Scott's Political Debate Porch Message Board

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Politics : Stockman Scott's Political Debate Porch

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To: Jim Willie CB who wrote (1422)	7/4/2002 10:45:52 AM
From: t2	Read Replies (1) of 89467

with the mounting evidence of deflation, increasing activity of Central Bank intervention, lack of import price inflation to date, and lost footing for golds in recent days, it just dont pay to ride it out right now Jim, Maybe you got that wrong. With the dollar weakening so much recently, price inflation is bound to start showing up in the economic data soon. That might be working in gold's favor right now, given the fact that we got our pullback already. The way I see it, the move in the golds will anticipate the further dollar decline. Notice how gold moved higher well before this latest drop in the US dollar index. There is little doubt dollar is going lower from current levels (imho) and my reason is partly that traders/investors and of course internation investors/CBs are now more open to this idea unlike in years past when we were all in denial. So we could get a situation where all run for the exits at any time. So I think Gold will move higher even if the dollar stays stable for a bit longer. I find it is better not to bet against something that is probably in a bull market. As I see it, this gold drop is just the expectation that the stock market will have a decent rally...and you know that could be about 100 to 200 gain on the Nasdaq...once that is out of the way, they will get back in. I would also note that short interest in gold stocks has been on the rise in the last 2 months...and that can set the stage for a sharp rally at any time...and one may not get the chance to get back in before this move happens. the Fed will soon be forced to up the monetary ante and print dollars like there is no tomorrow fear have entered the hallowed inept chambers of the Fed I expect that sloshing liquidity to be directed toward commodities much more so in the future but each new liquidation might hurt golds temporarily I don't get this comment. I would think fear would actually help gold. Maybe too complicated of a concept for my simple mind.

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