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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Chispas who wrote (14274)	10/29/2004 1:01:00 AM
From: Elroy Jetson	Respond to of 116555

My Grandfather's cousin, Charles Rist, was the Governor of the Bank of France and a strong proponent of the Gold Standard for France and other nations. It prevents many problems. One of his books was translated into English and published in 1955 as "The Triumph of Gold". A more recent translation is now available as "History of Monetary and Credit Theory from John Law to the Present Day" available from Amazon.com.fr. amazon.fr However as an investment for individuals I think it sucks because, as I pointed out, the majority of gold supplies are held by central banks who are inclined to sell when ever gold shows any strength. That is just one lousy set-up for a potential investor.

To: Chispas who wrote (14274)	10/29/2004 1:10:34 AM
From: mishedlo	Respond to of 116555

Bank of Japan board votes unanimously to leave monetary policy unchanged Friday, October 29, 2004 4:32:48 AM afxpress.com TOKYO (AFX) - The Bank of Japan said its nine-member policy board voted unanimously again after a one-day meeting to leave its super-loose credit policy unchanged The nine-member board has voted unanimously at 13 consecutive meetings now to maintain its so-called quantitative easing policy The decision, which was expected, means the BoJ board will leave in place its policy aimed at keeping short-term interest rates around zero by flooding the short-term money market with excess cash. This quantitative easing policy is aimed at ending Japan's six-year battle with deflation The BoJ said the board resolved to maintain its target for the outstanding balance of current account deposits held by private financial institutions at the central bank in a range of 30-35 trln yen. This is the bank's primary tool for keeping lending rates near zero No change was expected as the core consumer price index (CPI), the central bank's primary gauge of price trends, is still declining, and recent data have pointed to a slowdown in Japan's overall economic growth BoJ Governor Toshihiko Fukui, who heads the board, has repeatedly vowed that the central bank will not abandon its super-loose credit stance until the year-on-year change in the monthly core CPI, which strips out volatile food prices, remains at or above zero for a prolonged period The nationwide core CPI was unchanged in September, the government reported earlier today. It fell 0.2 pct the two previous months Sometime today the BoJ will release a biannual report, containing updated forecasts for price trends and economic growth for the remainder of the current fiscal year to March 2005, and for the following year Fukui is also scheduled to hold a news conference beginning at 3.30 pm (0630 GMT) In April, the policy board members projected an average 0.2 pct fall in the CPI over the current fiscal year to March 2005 In updating that forecast in July, the BoJ said prices at the wholesale level are "expected to deviate above the April forecasts for fiscal 2004, reflecting the strengthening of commodity prices, such as crude oil prices" But it added these increases are expected to be absorbed by such factors as improved corporate productivity, and are thus unlikely to be passed on in the form of retail price hikes Economists believe the BoJ board is also unlikely to change policy when data shows economic growth is slowing Real, annualized growth slowed to 1.3 pct in April-June, from 6.6 pct the previous quarter and 7.3 pct in the final three months of 2003 The policy board in July still forecast the world's second-largest economy would grow at a real 3.0-3.2 pct for the year to March 2005

To: Chispas who wrote (14274)	10/29/2004 1:42:47 AM
From: mishedlo	Respond to of 116555

BoJ may not abandon ultra-easy credit policy until 2006 [someone tell me why the YEN is such a great deal when Japan is doing everything they can to sink it? mish] Friday, October 29, 2004 3:48:27 AM afxpress.com TOKYO (AFX) - Consumer price index (CPI) data released early today shows the Bank of Japan almost certainly will not abandon its ultra-easy credit policy anytime soon, said Hiroaki Muto, senior economist at Sumitomo Mitsui Asset Management Co The core consumer price index (CPI) for metropolitan Tokyo, a leading indicator of nationwide price trends, remained unchanged in October from the previous month, according to the Ministry of Public Management, Home Affairs, Posts and Telecommunications said. "The figures were in line with market expectations," Muto said. Year-on-year the Tokyo area core rate fell 0.3 pct, the 61st straight monthly decline, showing Japan remains troubled by deflation Muto said the latest drop in the Tokyo core rate was largely due to Tokyo Electric Power Inc, which lowered its billing rate. The core rate excludes volatile fresh food prices, and thus gives a clearer picture of the underlying rate of inflation or deflation On a nationwide basis the core rate rose 0.2 pct in September from the previous month, following a rise of 0.1 pct in August Year-on-year the core rate -- the Bank of Japan's primary measure of price trends -- was unchanged, after falling 0.2 pct in both July and August and by 0.1 pct in June Muto expects the nationwide core CPI to rise above zero late next year "Since the BoJ needs several months to see if the CPI could stabilize above zero for a sustained period, it is unlikely to abandon its super-loose monetary policy until at least the July-Sept quarter of 2006," Muto said. The Bank of Japan has declared it will maintain its ultra-easy credit stance, under which it seeks to keep short-term interest rates near zero in an effort to stem deflation, until the core CPI "stably" remains at or above zero The BoJ will release today a biannual report, containing updated forecasts for price trends and economic growth for the remainder of the current fiscal year to March 2005, and for the following year Fukui is also scheduled to hold a news conference beginning at 3.30 pm (0630 GMT) In April, the central bank predicted that CPI would continue to edge down in fiscal 2004 "The market expects the BoJ's (nine) policy board members' projections for fiscal 2005 to come in at around 0.1 pct," Muto also said, representing an end to the deflation which has ravaged the world's second-largest economy for more than six years.