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 : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (5205)	1/16/2004 9:46:55 AM
From: russwinter	Read Replies (5) \| Respond to of 110194

If gold trades off knee-jerk on a Euro rate cut, it will be a gift buy. But, I think the problem right now on gold is not a rate cut, it's talk of ECB selling gold to buy USD in interventions, as unfortunately it's the only reserve currency they could use. More Sgt. Friday "just the facts" rebuttals into the Bernanke, "inflation is too low for my taste" nonsense. Bernanke said the following on intermediate goods inflation, "the 12 mo change in core PPI for IG has risen to plus 1.8%". Several points to be made from the Northern Trust figures. northerntrust.com First taking the new and important Dec. release, core IG PPI yoy is now 2.1%. Interestingly, the 3 mo core and all item PPI change is now 2.6%, and 2.7%. Again that excludes two vital subgroups, energy and food, which make up 17% (and rising) of consumer spending. PPI, all items is up 3.9%. Actually finished goods inflation for all items is up 4.0%. Obviously that's because food and energy must be used, and are "survival goods". Of course the Fed just chooses to ignore that and focus on core PPI of 1.0%. The PPI on crude goods (pipeline inflation) all items speaks for itself, with core up 20.8% yoy, all items 18.5%. Most of that is in the last three months, up a shocking 52.5%. That's the up-chuck moving through the python right now. These Fed Govs are on the deck of the Titanic, waving pom poms and leading cheers as the inflation tidal wave coming sweeping in on them.

To: mishedlo who wrote (5205)	1/16/2004 10:09:01 AM
From: mishedlo	Read Replies (1) \| Respond to of 110194

Thoughts on that paradox from Mr Plunger on my board. Lower Euro interest rates means 1. Lower US rates, and so gold becomes more attractive in USD terms, less negative carry 2. Euro no longer a safe haven for capital preservation - gold and silver will take off. Watch it happen, very soon now. Actually I am beginning to like silver more than gold - less chance of a central bank swamping action IMO. And I am taking the "plunge" and have an Australian road train sized truck backed up to load up on HUI stocks this morning. (I wish!). Plunger.