Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Classic TA Workplace -- Ignore unavailable to you. Want to Upgrade?

To: Hawkmoon who wrote (36066)	4/11/2002 8:23:03 AM
From: UnBelievable	Read Replies (1) \| Respond to of 209892

While The Participants In Government Plans Have Options The plans are not like daily valuation 401 (k) plans where the trustee moves the money precisely according to particpant elections. Much of the money is in a balanced fund where the investment manager has significant control of the asset mix. The government is using taxpayer money to support markets when it provides liquidity which flows disproportionately into the stock markets, as they have been doing.

To: Hawkmoon who wrote (36066)	4/11/2002 9:34:36 AM
From: John Pitera	Respond to of 209892

Hi Hawk, I've got a couple of GOLD vs other currency charts thecapitalmarkets.com that show how GOLD's bull market is more pronounced when viewed in Non-US dollar terms. We have already seen a bigger rally in Gold in some of the other currencies. Gold's rally when priced in The Australian dollar, the Canadian Dollar, and The Euro has been more pronounced. Gold has yet to rally significantly against the price of Crude. The US Dollar has been in a multiyear bull market Click here to see the US Dollar Bull Mkt We have a situation where Gold has already started to advance against all currencies. A Key thing to notice is that Gold bottomed and has been rallying against all of these other currencies since 1999. This is classic bull market action in Since it went up for 2 years in all the other currencies while attracting a bare minimum of investor notice and interest. In fact, Investors continued to move out of Gold as an Asset class during the 1999 to 2001 period when Gold had already started it's bull market. Gold has now been advancing even in US Dollar terms. With the US Dollar at the Highest level since 1986 and with it being fundamentally overvalued. The next bear market in the US Dollar will have an accelerator affect on the Price of Gold , as Gold's advance will accelerate it's Price rise as The US dollar depreciates against the foreign currencies. The time tested way in which Central Banks deal with deflation is through an aggressive expansion of the monetary base and monetary aggregates. The Global Macro Economic Environment has been showing signs of deflation for several years now. The Popping of the US Stock Market Equity Bubble since 2000 has been increasing these deflationary overtones. Click here to see Japan's Deflation battle of the 1990's Japan's Central Bank has started to aggressively deal with their deflationary trends by expanding the Monetary base by 27.5% in the year ending in February 2002. This is the largest increase in Japan's Monetary base in a single year going all the way back to 1974, when we were in the midst of the last Major Globally synchronized recession. This was also during the Major US Dollar Bear Market that was the result of the Going off of the Gold Standard and having to disavow the Bretton Woods Monetary Pact of 1944. This 1974-75 recession was also the height of the initial adjustment period of the global economies to the first OPEC oil price shock that so adversely impacted the Global economies. The US Central Bank has engaged in an unprecedented series of short term interest rate cuts by cutting the Fed Funds rate 11 times in 2001. This has been the biggest percentage decrease in Interest rates in the shortest time period in the Federal Reserve's history, since it's creation in 1913. The cuts have driven short term interest rates to 40 year Lows. John