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Politics : Dutch Central Bank Sale Announcement Imminent?
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To: Jamey who wrote (21058)6/1/2004 10:05:01 AM
From: sea_urchin  Read Replies (1) of 80971
 
James > Care to guess? Do you know any Las Vegas oddsmakers that might be laying odds on some type of catastrophe?

No, I don't, but I don't think there will be a catastrophe, either. Other than what there is already, that is.

If I was to guess, I would say it had to do with the imminent rise in interest rates which has been mooted for months already. A rise in interest rates will be very deflationary and could well "prick the bubble" in the property market bringing down prices and thereby causing upset and possibly even panic. So, the printing of this enormous amount of money will offset that by devaluing the currency. If the US does not raise interest rates the USD will fall against the Euro etc and OPEC could well raise the oil price for that reason alone.

At the moment the big problem is certainly the oil price and the fear that further terrorist attacks will disrupt Saudi supply. I think, even at $40 a barrel, the world economy is being drastically squeezed and the threat of further oil price rises is very worrying indeed. This is really "knife edge" stuff and Humpty-Dumpty is balancing on the high-wire......

Of course, gold pundits see all this as a reason for the gold price to rise strongly, and they may be right. As I pointed out a few posts ago, revaluation of the gold price from its present 10X the oil price to 14X (which will still be within the upper level of its present price distribution) will bring the POG to over $500.
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