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

To: mishedlo who wrote (5801)	1/22/2004 1:36:01 PM
From: Louis V. Lambrecht	Read Replies (6) \| Respond to of 110194

You still believe they'll cut? This would make the US blackmail a success. I am neutral currently, but still believe the Euro needs a rise. Cutting the rates, and I call the ECB "bribed" or "laquey". A rate cut would only profit to very few German exporters. Germany is the largest industrial European country, but 10 new countries will join the Union before Summer. These need higher rates. They just couldn't keep it up with 2%. Btw, there are also talks of the Bundesbank willing to be granted a ticket to sell gold for "research" fundings (new "Washington Agreement" (600 tons on 5 years). For one, national Central banks may sell assets to cover budget deficits, but the Eurosystem treaty prohibits this. Two, selling gold for other purposes need a new law to be voted by the German parliament and this is not given. Third: IMHO, there is no need for a new Washington Agreement as there is no deadline set in the original one: it can be tacitely reconducted for an unspecified time! I still will watch what will happen at the G-7 meeting. This will only be a pissing contest, IMO. If not, then I will reconsider my currencies basket.