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To: isopatch who wrote (89609)	4/3/2001 11:41:42 AM
From: Hawkmoon	Read Replies (1) \| Respond to of 95453

I would subscribe to that theory if gold paid a dividend or the US dollar were at risk of a major collapse. But I don't see either situation being the case. It's like the old argument that has been touted around goes, "watch out for the Japanese migrating money back home from the US". Well, that would be all well and good if people think that financial types would sell income producing dollar denominated bonds and buy Yen based paper yielding practically nothing and facing additional currency devaluation. But that would be illogical. What we're seeing here is clear evidence that much of the world has overly relied upon US markets to prop up their economies. And I would COMPLETELY agree with you about the Fed being too tight. They jacked up the price of cash in a global economy facing deflationary risks. Now they need to reduce the cost of that capital so corporations can re-finance at lower rates and reduce their overhead. We obviously had a bubble in place on many technology related stocks. But that does not negate the clear productivity value that this technology revolution has brought to making companies that utilize IT. It's interesting that a rumour is floating around that Bush may have effectively told the Japanese that we'll let the Yen depreciate against the dollar in exchange for their undertaking the fundamental structural changes necessary to get their economy back into equilibrium. And the strength of the dollar gives AG all the ammunition he needs to lower interest rates to accomdate corporations. Regards, Ron