Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: long-gone who wrote (40847)	9/26/1999 4:09:00 PM
From: ahhaha	Read Replies (3) \| Respond to of 116791

Can't do it. I keep seeing the creep everywhere except supermarket food where the effect is seen in a decrease in product moving discounts. This is a surreptitious inflation which will gather momentum at its own inexorable rate. The one factor that would make it clear that big trouble is near, is a continuance of dollar weakness. The weakness though needs a breather and oil price strength is providing the cover. For the last two years something new has developed in the macroeconomic equation. The major economic nations must stimulate their economies with direct monetary action in order to prevent their currencies from falling. This is opposite to what has been held to be the way the machine works. In Japan the leaders are talking about increase in stimulus to get the yen down, but as usual, this is completely wrong. Such stimulus would drive the yen even higher. Europe has a similar misunderstanding. They are talking about raising rates when they have no choice but to pursue monetary stimulus immediately. If they don't, they will lose any competitive position they might currently enjoy. In this era in contrast to the past the advantageous regime is beggar-thy-neighbor monetary stimulus. One could look at it like this: the FED since 1995 pumped in an unprecedented pile 'o dough. That enabled our country to become directly and productively wealthy. Meanwhile, the other nations have become relatively poorer. Now Japan has seen the light and is embarking on similar stimulus. That's logical since they are the next biggest economy and so would be the most immediately effected by our will to wealth. We beggared them. Obviously this scenario is intuitive, but it can be made rigorous. That's what think tank isn't doing. What is the result of this stimulus? Every nation will have to follow suit or their GNPs will fall. The wealth of nations will increase. The DOW should go to 20,000. Once you have them all likkored up, the blight can set in with a vengeance. Don't you just love that kind of talk?