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 : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: Archie Meeties who wrote (67624)	6/5/2000 5:59:00 PM
From: JungleInvestor	Read Replies (1) \| Respond to of 95453

<You see, the only reason the fed is hiking rates is to defend the dollar. If AG wanted to cool asset inflation (which is the biggest inflation of all), a far more effective weapon is the money supply. In fact, the money supply is expanding vigorously! The freshly printed money is being piped directly into equity markets with the help of your favorite crooks. To continue to attract foreign money (and that's something that must be done actively - just look at the trade imbalance) - the equity markets must perform. When they do not, the Fed has no chance to salvage the dollar but by hiking rates and attract money to the treasuries.> Archimedes, you hit the nail on the head. The money supply has been expanding since the CB's around the world lowered rates an unprecedented number of times (believe it was close to 50 reductions worldwide) in the second half of '98 to prevent a global economic collapse. This expanded money supply IS going to cause high inflation. There is already evidence of this in the CRB. Gold will follow. Although everyone focuses on OPEC quotas, a portion of the rise in oil prices is most probably due to the expanded money supply. Commodity prices will continue to rise due to the inflated fiat money. The strong dollar and the federal government tinkering with statistics hide inflation in official stats. When the dollar weakens, inflation caused by more expensive imports will rear its ugly head. My conviction is that oil and gas is by far the best sector to invest now. As the dollar weakens, gold will become much more attractive. I'm avoiding any other sectors.