Dutch Central Bank Sale Announcement Imminent? Message Board

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Politics : Dutch Central Bank Sale Announcement Imminent?

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To: Crimson Ghost who wrote (1751)	10/22/1998 10:57:00 AM
From: Jim McMannis	Read Replies (1) of 81821

I see rates as a key also in that lower rates are perceived as a precursor to inflation, a priming of the pump. Especially if the FED is seen as being behind the "curve" so to speak in that they have eased in excess of what it would take to stimulate. For many years now it's been very difficult for gold to rise in the face of higher interest rates. Perhaps because AG is known to be ahead of the curve in that he's not likely to wait to hike and use as many hikes as necessary to snuff out any inflation. With the world economic crisis effecting the FED, I see a window of opportunity for the FED to over-ease. Coupled with a miraculous recovery in Asia and a realization that central banks should hold to their gold, I believe this is the best chance for gold stocks at this time. Unfortunately, I understand that the Bundesbank failed to ease today and gold has gone into a bit of a tailspin. The Germans learned a hard lesson early in the century and have since been relunctant to generate any inflation through excessive rate cuts. This is nothing new but apparently there was some hope. Jim

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