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

To: russwinter who wrote (8070)	2/13/2004 5:53:45 PM
From: ild	Read Replies (1) \| Respond to of 110194

Chinese oil imports jump 23 percent #reply-19803646 Red lights flashing for China's economy #reply-19803815

To: russwinter who wrote (8070)	2/13/2004 6:04:50 PM
From: yard_man	Read Replies (2) \| Respond to of 110194

Message 19806209 I like zinc

To: russwinter who wrote (8070)	2/13/2004 7:26:00 PM
From: mishedlo	Respond to of 110194

What's up with WHT ah? M

To: russwinter who wrote (8070)	2/14/2004 8:08:45 AM
From: mishedlo	Respond to of 110194

WHT - popped .16 ah friday and I can not find any news other than this moneysense.ca

To: russwinter who wrote (8070)	2/15/2004 11:01:28 AM
From: Silver Super Bull	Respond to of 110194

RW, RE: "However, if one thinks the Wizards will just continue and stand by as the inflation evidence continues to ratchet up, then all these precious and other metals will continue to go ballast." This is my thinking exactly. I think in the most basic terms rates will be kept very low to aid economic growth, and more importantly, to keep the debt bubble and its dependents (housing, derivatives, etc) somewhat stable. At this time, raising rates high enough to counter the inflation problem won't happen (and arguably can't happen without serious calamity) because the assumed benefits aren't worth it compared to facing the known hazards a rate increase would engender. Only when the perceived cost/benefit equation changes will we see potential rate increases, and I don't think this will happen until the overall situation changes very significantly. After all, what interest rate would be needed to totally quell the inflationary pressures? A fed funds rate of 5%? 10%? And how quickly would this have to happen?? To use your classic drug addict analogy, these types of rate hikes would be akin to taking a junkie with a big time dependency and a) having him go cold turkey immediately and b) telling him that he is joining a chain gang that is working in 110 degree heat effective immediately. Great therapy if he can survive it, but can you imagine the initial reaction?? DB