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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 (13341)	5/7/2004 9:09:52 AM
From: Crimson Ghost	Read Replies (1) \| Respond to of 110194

Hathaway made a good point distinguishing real rates from nominal rates. There is little doubt nominal interest rates will be rising, but I doubt we will see positive real rates (even using doctored CPI data) at the short end for some time to come.

To: russwinter who wrote (13341)	5/7/2004 9:14:03 AM
From: gregor_us	Read Replies (2) \| Respond to of 110194

More Reasons Why Gold Should Be Higher Right Now. That's what I'm getting from your remarks, and my continued thinking about this subject. Gold should be higher right now to discount a nearer-term future of terrible credit spreads (as you say) and as the effects of real vs. nominal rates are revealed more fully. It appears increasingly likely that a stagflationary or inflationary period stands between us now, and the deflationary period. If this is true: then Gold has responded very early. (Impressive). What gold needs to do now is calm down and realize there is plenty of time to perform to the upside before the higher interest rates enact the deflationary period.