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Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: qwave who wrote (112027)	2/1/2002 5:27:03 PM
From: Jim Willie CB	Read Replies (2) \| Respond to of 152472

as the Fed attempts to ward off deflation, recession (tied together), GreenSpasm and his governors embark on reflationary measures to get a grip on the scope... since January 2001 the Fed increased the US Money Supply by an amount greater than the entire nation's Money Supply in 1965 !!! the Fed will continue to pump in new money to fight the devastating effects of deflation our entire economic system depends on some inflation as being healthy steady deflation destroys corporate profitability and housing prices and so much more the Fed will continue this infusion reflation policy UNTIL IT SUCCEEDS the trouble is... the Fed has poor self-control, and under GreenScrotum's tenure has shown poor judgment they tightened too long in 1999-2000 they stayed on sidelines too long from June 2000 to Jan 2001 they will loosen too long in 2001-2002 they will prevail, if our system is to prevail and the price is BEING WRONG ON INFUSION SIDE imagine air pumped into your body via the bellybutton where does the first rupture occur? for me, my brain, the most vacant space and my bowels, the most practiced space at melody in the economy, large capital infusions simply dont enter into the working economy that fast banks are still reluctant to lend, even though given more Super Money to lend by the Fed (Super Money is lent with leverage to borrowers) so the end result is asset prices rise where the least resistance occurs where is that? it aint with mfg plant expansion, nor new capital equipment, nor even hiring new jobs (unemployment continues beyond the first signs of recovery) the least resistance is found in gold, silver, oil, timber, and other hard asset resources these commodities are bid up in value with the new money some bidding is real, as business renews but speculation joins the real sure, some minimal resistance is found in speculative areas, like tech stocks but this time around, only high quality techs that are not exorbitant in price QCOM surely qualifies imho in 1992-94 a surprising surge occurred in gold stock prices the price of gold zoomed, then failed in 1995-2000 hard assets picked up nicely in price same thing is likely this time around now, factor in a war in the oilfields, and crude oil jumps to $40 I think the biggest threat to the US economic recovery is the rise in interest rates as the Govt becomes a seller of bonds and the dollar slides versus the Euro this will lead to a gradual decline in bonds and dollar it will partly encouraged by PrezBush but these trends are hard to stop, once started / JW