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Strategies & Market Trends : Strictly: Drilling II -- Ignore unavailable to you. Want to Upgrade?

To: nspolar who wrote (19199)	9/19/2002 3:50:00 AM
From: TheBusDriver	Respond to of 36161

<<iso, yeh the wages>> But aren't wages the LAST thing to go up in an inflationary period? Firemen here in UK are asking for a 40% increase!! I almost fell off my chair. Wayne

To: nspolar who wrote (19199)	9/19/2002 8:11:07 AM
From: Frank Pembleton	Respond to of 36161

Where's Coalie? From yesterday: Gold up 3 bucks today, but gold stocks flat. A classic sell signal for the gold sector. Gives some ammunition to the stock bulls. investorshub.com Regards, Frank P.

To: nspolar who wrote (19199)	9/19/2002 8:46:24 AM
From: Sharp_End_Of_Drill	Read Replies (2) \| Respond to of 36161

Nspolar, not many people discuss the deflation impacts on gold, because as you say they are murky. Prechter says gold gets hit in the beginning along with anything else, and then flies in the inflation that is sure to follow deflation. That doesn't get much (any?) airplay on this thread as nobody wants to believe their safety net has holes in it. I was swaying in that direction for a while, but now I believe the powers that be will do anything and everything to avoid deflation. To me that means inflation is as sure as taxes, and coming soon. There are several magic bullets left to combat deflation. One is further cuts to the discount rate - down to zero if needed. A more powerful one would be a reduction in bank loan to capital requirement which would give banks tremendous liquidity and ability to lend more funds. Of course, if you believe the banks are barely solvent, or insolvent, then there will be a bill to pay for that at a later date. And of course, there is running the money printing presses at full speed for the foreseeable future. I think that's happening now and will continue to. There is a battle going on between the flood of new liquidity and the destruction of wealth going on with bad loans & bankruptcies - a hurculean tug of war if there ever was one. All in all, I don't think we see the nasty deflation getting discussed simply because one in there is no way out. Our powers that be understand inflation, and will move heaven & earth to make sure we have it instead of the alternative. That's my take. V-Snakes. Sharp