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Politics : Dutch Central Bank Sale Announcement Imminent? -- Ignore unavailable to you. Want to Upgrade?

To: sea_urchin who wrote (13460)	2/17/2002 2:16:01 PM
From: ubetcha	Read Replies (1) \| Respond to of 81502

Searle, I agree with your scenerio. Since my degree is in business with minors in accounting an economics, I think I understand business a little bit. Enough to get me in trouble. When interest rates go up, people tend to move their investments into fixed security investments which results in lower stock prices. The inverse is normally true. Alan poured mucho denero into our economy which created inflation in our markets. He slammed on the brakes in order to rid ourselves of irrational exuberance. Now he is trying to bring it back, but is having a hard time of it. Since our economy is now tied more and more into the other economies of the World, this becomes more complicated. Lower interest rates tend to make ones currency have a lower value to other currencies. People of the world tend to invest in currencies that pay the highest rate of interest. That was why as Alan reduced our interest rates, it was so important to get the other countries to lower theirs at the same time. We must keep the dollar strong. After all it is the US engine that must keep all other economies afloat. If we stop buying, other economies will be in for difficult times. That is most except for South Africa which tends not to buy what they need from the good old US. Our economy is not working in a normal Kensian (sp) way. I must also say that I am in a quandary. Is your dog AU? I know that Tom's is NEM, but may be wrong with your dog. I also have some AU, NEM, and some HGMCY on the side. Yes, I too think that the gold stocks may fall in the near and intermediate future, but I will hold on for the longer term. I have had them for over 3 years, so I think that time is on my side. I do not believe the talking heads on CNBC that all is well, and everything is on the mend. Thanks, Terry