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Strategies & Market Trends : Galapagos Islands

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To: Techplayer who wrote (18532)12/26/2002 4:20:03 PM
From: GraceZ  Read Replies (2) of 57110
 
the meddlers at the FED that there will be a ramped effort to support the dollar will have a big impact on Gold

As long as the Fed continues to keep short rates at a negative real cost of money the dollar will be weak (although one could expect it to bounce somewhere). It was the White House that tried to jaw bone that the strong dollar policy was still in effect, not the Fed. No one seems to think a falling dollar can result in inflation with falling demand. It's a lesson that will have to be learned all over again. You have to wonder why the bond market hasn't felt the full effect of the falling dollar... yet.
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