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Strategies & Market Trends : Natural Resource Stocks

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To: Jim Willie CB who wrote (2665)10/29/2003 3:40:21 PM
From: philv  Read Replies (1) of 108556
 
They are trying to figure out how to juggle all the balls at the same time.

If they want to stimulate growth, they need low interest rates.

If they want to maintain the "strong dollar" inorder to protect their status of "reserve currency", they need high interest rates.

If they want to create jobs, they need low interest rates.

If they want to attract foreign investments, they need high interest rates. Luckily Japan is even lower and Europe is co-operating.

If they are worried about the current account and trade deficits, they need low interest rates to help the manufacturing sector, and they need high interest rates to sell treasuries inorder to finance the deficits.

So, you see, they need high and low interest rates all at the same time.

Simple!
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