The beginning of an inflationary environment
Hi, All:
The most significant international economic news during the past week
was the talk by Mr. Allan Greenspan of a possible reduction in U.S.
short term interest rates, which was followed by the surprised
reduction by the Bank of Japan of its discount rate to 1/2% yesterday.
Moreover, a trend in academic thinking in the U.S. has been advocating
that fixing the value of the Russian Rouble to gold, say at 2000 to 1,
and the issuance of gold-backed Rouble bonds would be an expeditious
way of solving the Russian economic crisis. Finally, a igniting of
an inflationary environment is also considered a good solution for
solving the economic problems of many resource-rich countries in South
America and elsewhere in the world.
In recent days, the sharp rally of the XAU (Philadelphi Exchange
listed gold-stock index), which historically had preceded any
substantial move in gold price, might portend the future price trend
of gold.
To get the latest quote (24 hours around the clock), just type gc=z8,
(Dec. Comex future contract)at the following link:
cbs.marketwatch.com
Best regards,
pcyh |
