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Politics : Dutch Central Bank Sale Announcement Imminent?

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To: Lucretius who wrote (3165)1/21/1999 6:05:00 PM
From: Zardoz  Read Replies (1) of 81029
 
"you misunderstand me. When I say the economy is dependent on the stock mkt, I mean this as an unusual and dangerous situation that is symptomatic of the current mania that the US stock mkt is experiencing. 1987 is no comparison. ".

Must be the way in which you get quoted eh?

"You think Easy Al; is going to RAISE rates to increase liquidity in the financial mkts???"

That's not what I said, and you dam well know it. I said that the M2 rate was decreasing, and that was a sign of the US FED desire to raise rates and not lower. Add to that the discount yield rates average repurchases on the increase, and you have a FED tightening. USA has been in a financial bubble since 1991, big deal. There is no comparision to Germany of 1930's, your dreaming. US may very well have rampant inflation, but that does not do well for gold, it's only when the rates are stable, and start falling that gold will pick up. Deflation is a killer, but is subdued. By raising rates, slowing the US economy, you will see capital gather outside of the USA... but only when the USA slows. And then Asia will show growth. As the system stands, Asia won't recover.

A bust need not occur aftre a boom. 1970-78.
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