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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: maceng2 who wrote (45367)	1/29/2004 3:48:35 PM
From: Louis V. Lambrecht	Respond to of 74559

One paper is not the other: this one for rises: bankofengland.co.uk In relation to the UK position, Mr Tucker says "the recent position here has been that if the economy proceeds along the path implied by our November 2003 Inflation Report projections, the MPC's repo rate will need gradually to rise to keep inflation in line with the target" - a point reported in the minutes of recent MPC meetings. He says there have been few periods over the short life of the MPC when policy has "proceeded to unwind its response to past shocks and so return the official rate towards 'neutral' along a smooth path". So "there have been few opportunities for market participants and others to observe how the MPC would choose to return rates back to around 'neutral'.

To: maceng2 who wrote (45367)	1/29/2004 6:44:48 PM
From: Maurice Winn	Read Replies (1) \| Respond to of 74559

PB, the interest rate rises have begun, led by NZ, which raised rates just a tad, which did create a bit of squeaking from the indebted. Uncle Al KBE has now moved towards warning that one day rates will rise. Now it's on BBC World, Asian Business Report, as I type - discussing when, not if rates will rise. Meanwhile, gold has tanked as the Aztecs scurry for cover while they wait to see if Uncle Al is going to send a fleet of AC-130 Spectres over their positions. Aztec totem now down to just below $400. Meanwhile, Mighty Q = $575, nearly 50% more than the Aztec bauble, G, after being behind G when the contest began a couple of years ago. As interest rates rise, debt-free productive assets will become more valuable compared with gold and the US$ will once again be seen to be more than a finger-wagging promise by Bill Clinton or fantasy WMD by King George II. Uncle Al KBE is in a different game. He's not chasing the girls or bashing the tyrants to get their oil. He's in the Big League, but he will lose to the Q eventually. It's just a matter of time. Mqurice