Hi philv,
The Chinese say we live in interesting times, and when we look at the gyrations of the markets elsewhere, the logic-defying bull market in N. America and the seemingly never-ending decline of gold, and the ravages of El Nino, one cannot but agree with them.
Many are the theories that attempt to explain the U.S. bull market and one of them claims that the "bull market is a conspiracy by the Clinton Administration to keep Americans' minds off the widening circle of scandals." I am inclined to agree. Clinton and his inner circle of supporters and including those not so 'inner' are doing everything possible to ensure he would be able to complete his term of office without being impeached.
Dale Davidson wrote the following in the October '97 issue of Strategic Investment:
".......But I do firmly believe that organs in the U.S. government have been actively abetting the market's rise in ways that are not recommended in economics texts. The U.S. authorities are not merely content to pump reserves into the banking system to float stocks on a higher sea of liquidity. I believe they are indulging in less orthodox forms of stock manipulation, even intervening directly in markets." Apparently, Mr. Davidson is bolstered in his opinion by the very existence of a "Plunge Protection Team" at the Treasury and Alan Greenspan's cryptic remarks that "We have the responsibility to prevent major financial disruptions....if necessary in rare circumstances, through direct intervention in market events." Apparently, this means that the Feds will monetize the S&P any time that rational exuberance fails to do the job for them.
There is no doubt whatsoever that the price of gold is being manipulated on both sides of the pond to ensure that both Clinton and the promoters of EMU achieve their respective goals.
As has happened in the past, there will be a day of reckoning. Unfortunately I do not have a crystal ball.
Richnorth |
