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Strategies & Market Trends : Natural Resource Stocks

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To: isopatch who wrote (3430)11/17/2003 11:51:47 AM
From: Jim Willie CB  Read Replies (1) of 108702
 
The US Dollar Bear 2, by Adam Hamilton (Zeal LLC)

gold-eagle.com

the USDollar decline is closely tracking the decline in real interest rates
(1-yr TBill yield minus CPI)

the S&P is rising against the backdrop of a declining USDollar
which is in direct opposition to the historical relationship
the probable explanation is the euphoric annexation of Iraq
(look out below !!!)

the US$ 200MA serves as a brick wall barrier
possibly foreign investors did not invest in S&P this summer, resulting in a sputter

the balance between savers and debtors is being slowly destroyed

Australia and England recently raised interest rates
this puts a bigger differential at work from US rates

GOLD BENEFITS FROM ALL THE ABOVE

he expects a USDollar bear market until 2007

one dropped ball in the article:
no mention of imminent rising Asian imported product price inflation


/ jim
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