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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?


To: stockman_scott who wrote (49243)4/1/2002 11:56:58 AM
From: Jim Willie CB  Respond to of 65232
 
Fed Chief GreenShorts and Fed Governors are caught in a box

they cannot raise rates, or else torpedo
- the recovery
- the stock market
- the bond market
- the housing market

they will talk about keeping rates the same, until they raise rates
I hope they dont raise rates until after LaborDay
they are daily planting inflation seeds to prop up stocks
the longer they wait to raise rates, the bigger the gold/silver explosive rally will be
when you ask? within 9-18 months, before June2003

meanwhile, shortend rates are on par with CPI inflation rate
so zero real rate of return for shorterm bond holders

the Federal Reserve is very quietly spiking the bond market and the dollar currency market
just to save the stock and housing and dollar bubble

they are caught in a horrible box
that is precisely why gold/silver is rising
bond holders see inflation as the next chapter
rising rates sooner or later will come, and bonds will get hurt

so the smart bond holders are slowing finding inflation hedges
namely, gold & silver on secured investment side
and oil & natural gas on commercial investment side

I am not pre-occupied with gold & silver, as Murrey suggests
I see the Fed as squaring off against the bond market
by the way, the US TBond market is 5x larger than the US Stock market
and the road from bonds to gold bullion is a road traveled before
with real rates near zero for now half a year, history is on the side of creditors who stuff money into precious metals
if they sit on their thumbs, and rates rise, they will lose 15-30% of their principal

just where are rates going next, in Parry's opinion?
these guys are scared cheerleaders
are we heading to Japanese short rates of 0.75% ?

"no inflation out there" is a growing baldfaced lie

check gas station pumps, property tax bills, movie theatres, restaurants, car repairs, college tuition, home insurance, business insurance, car insurance, doctor bills, prescription drug bills, new tariffs, etc
/ jim