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Strategies & Market Trends : Commodities - The Coming Bull Market -- Ignore unavailable to you. Want to Upgrade?

To: craig crawford who wrote (284)	6/18/2001 2:38:01 PM
From: Ahda	Read Replies (1) \| Respond to of 1643

Business at present is trying to reduce costs. It doesn't take a genius to see that cost is exceeding the price on numerous quarterlies. AG is attempting to take this economy and stimulate the reduced earnings. Business is trying to increase earnings by reducing costs. You have conflicting interests as investment needs an increase in price in order to be of value.. When investment becomes reduction in value you are losing money instead of making it meaning, your dollar is not doing what it is suppose to be doing, working for you. When you look at the debt the private sector of the economy holds, many people have the debt growing faster than their income. That means income has to catch up to debt or you can't pay your bills. The FED is attempting to engineer a continued upstream now to avoid the problem, which is, can't pay the bill in both the public sector and private. The concept is by easing interest it makes it easier to obtain a loan to grow. The hope lies in the mid caps growing but there is a little question here of too much money that is still floating around that can cause in the mid caps exactly what occurred in dot coms. The wealth effect of trickle down on this was very limited that it did not trickle quite enough to cause the base of the economy to have an increased need for products but did create a very high debt rate in the private sector. You need more income in order to pay off your bills in other words. .Labor cost is part of competition as is the labor force of the world now. Our saving grace has been our political stability due to this we have seen many other nations investing in our nation. But when your investment is decreasing as rates of our less speculative investment vehicles decrease and our standard living costs increase the dollar is losing value. Banks by using determine rates on how great the demand for dollars is. AG is attempting to ignite gently by making the cost to borrow less when corporations are saying contract as we our creating more debt than profit. Money controlled by rates tends to breed to higher a price for all. Money has to grow but it finds its own level of growth. If sixteen people want one object the value of that object is whatever they are willing to pay and the highest bidder wins. You might walk in and say the object is worth twenty dollars but by having too much money after the same object you can have the price go far beyond it’s true worth. A dollar is just an auction object a little bit more complicated as it represents an entire nations ability to the world. Growth is a natural product people find a better way and they use it. This same object is sold for a two dollars at another auction some where else If there were not so many dollars at the first auction the price would not of been twenty. The value is still in the object the price only is how much people will pay for that object. In hope of future return. The fellow that bought for two has far more hope than the one that paid twenty. By attempting to create an economy and doing so by making dollars easy to obtain you take a high risk of unrealistic value. A bubble of different nature not so easy to weed out as Dot com.