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Politics : Stockman Scott's Political Debate Porch -- Ignore unavailable to you. Want to Upgrade?


To: t2 who wrote (1426)7/4/2002 12:16:04 PM
From: Jim Willie CB  Respond to of 89467
 
we are 95% in synch, TMan

in recent weeks the evidence has been of continued drops in CPI
gold signals a potential reversal of that trend soon
via dollar declines and large-scale monetary expansion
but the recent evidence has yet to show up
liquidations from bankruptcy add fuel to deflation fires
meanwhile, the dollar provides a powerful undercurrent that will eventually toss a larger CPI reading slamming onto the market shores
we agree, but I talk of evidence
you talk of expectations and reality forces
I acknowledge the same forces, but await arrival of data

fear inside the Fed is kept quiet
my personal guess is the Fed Chairman has NEVER been more nervous in his career
imagine sitting as Chairman, watching a bubble form, shuddering as the bubble broke, now aghast that 11 rate cuts has failed to stimulate the stock market
but a bunch of old inept Fed policymakers pissing in their pants behind closed doors dont make gold rise

you dont think their fear results in immediate gold rise, do you?
investor fear does, not policymaker hidden fear
that fear must contain a component of dreaded inflation revival
when MZM money supply rises in the next few months, you will see another entirely new round of mudslinging

the Pro-Liquidity crowd will love the new fresh money coming to rescue the markets
but its size will alert the Inflation watchers who claim monetary inflation will soon bring price inflation

gold needs some price inflation real evidence
more Fed fear will lead to more inflation seeds planted

hang in there
we are walking side by side
/ jim