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To: Art Bechhoefer who wrote (116123)3/28/2002 11:08:34 AM
From: Jim Willie CB  Read Replies (1) | Respond to of 152472
 
good luck, Artful Dodger... check out article on real rates

excellent analysis and financial commentary on longstanding relationship since 1960's between real rates and precious metals

when real returns (after inflation) to bondholders diminishes, then a period of chronic inflation is being not only forecasted by bond analysts but encouraged by the Fed
that is their sentinel signal to limit exposure to bonds, and pursue gold as an inflation hedge
the last such signal came in the late 1970's
such a signal has been in force since early 2001
it has been signaling all year long

GreenShorts is caught in a bind
if he increases shorterm rates too fast, he kills the stock market and the economic recovery
if he increases shorterm rates very slowly, he encourages inflation from long duration of stimulative low rates
he may not be able to discourage the gold rally
to do so would require killing the recovery
I believe he needs inflation to bail out the bubble forces

enjoy, very illuminating
until this winter, I hadnt been aware of the extremely close inverse relationship between near zero real rates and growth spurts in gold demand

zealllc.com

I am sure equipment exists to make fine photos from digital cameras and great print quality
but unfortunately, 90% of the world is still discovering old fashioned photography
the new frontier will be pushed, for sure
but the old frontier will be well traveled for many years

I truly believe that in every single major commodity front, if you watch China, you will be on top of the trends
China buys silver, buys photos, no digital cameras yet
/ jim