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Strategies & Market Trends : Three Amigos Stock Thread -- Ignore unavailable to you. Want to Upgrade?

To: Ken W who wrote (25370)	6/20/2001 7:55:22 PM
From: Sergio H	Read Replies (1) \| Respond to of 29382

Ken, remember that a weaker dollar means higher gold prices and visa versa. While the fed is loosening interest rates, making the dollar weaker, there are other factors keeping the dollar at high values. Most recent examples include the Japanese recession, weakening English pound and the bottom seeking Brazilian real. Weak foreign currencies create more demand for stabilization that the US dollar brings. The result of lower interest rates ultimately is increased inflation, as now being experienced in the Eurozone. Europe's inflationary problems puts a crimp in their efforts to spurt their economy and also has an effect of adding might to the dollar and weakness to gold. I think that Greenspan's comments on US banks tight credit policies is not directly tied in to the strengh of the dollar, but he was addressing the fed's effort to increase growth. As you know, investment bucks for venture capital and cheap credit lines are a necessary ingredient to fuel economic growth. Greenspan is calling on our banks to lend money to get our economy going. On BLTI, you're in the driver's seat. Sergio