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

To: SliderOnTheBlack who wrote (66288)	3/20/2001 9:07:28 PM
From: Hawkmoon	Read Replies (1) \| Respond to of 116764

The Fed also doesn't want to spark a massive outflow from US assets either by undermining the dollar which just broke out to the upside, from the right shoulder of a H&S formation. quotewatch.com And btw, I just heard him again on CNBC where he was with Cramer and Ron Insana (and a few others) talking about how this Fed move was probably not enough to send the signal that the Fed was re-liquifying the system. He stated he was a afraid of further deterioration in copper, silver, and energy if the Fed doesn't liquify the markets. So the question is whether the Fed has done enough and that they don't agree with Kudlow about the need to re-inflate the POG, or that they are going to act again later this next month and didn't lower .75/basis points because they wanted to protect the dollar. And I agree that the Fed is behind the power curve. But neither do I want to see the dollar break a H&S pattern to the downside and trigger a massive sell-off of US assets. The problem here is that reliquifying the economy is only one part of the problem. The fact that the rest of the world is so heavily dependent upon US markets, and too weak to maintain a balanced trade exchange with us, indicates that maybe the Fed is also trying to send a message overseas for Asia to get it's house in order and quit relying so heavily on the US economy, or face going off the precipice. It is the fact that the US economy has born the major burden of having to compensate for the lethargy, corruption, and generally poor banking procedures in Asian nations, as well as the socio-economic problems of Europe. We went from being 20% of the global GDP in 1997 to approx 33% in 2000. It is the Asian economies that truly need to re-liquidy their economies. But unfortunately, adding cash to such a corrupt banking system is like throwing money down the drain. And btw, how is a softer dollar going to advantage the US when Japan is trying to weaken their Yen at the same time? Btw, I still stand by my belief that $300/ounce is major resistance that won't be broken in anything but the most brutal of economic meltdowns. kitco.com And you really need to stay on your medication Slider. You're reacting to my comments far too emotionally and that's a sign of weakness, if not mental instability... <VBG>