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Politics : Dutch Central Bank Sale Announcement Imminent? -- Ignore unavailable to you. Want to Upgrade?

To: sea_urchin who wrote (21902)	11/18/2004 11:51:54 AM
From: The Wharf	Read Replies (1) \| Respond to of 80963

I imagine if interest rates do rise we will see some strengthening of the dollar and a fall in POG -- but who knows? ME I think that if interest rates rise you will see that gold will still continue to rise. It is impossible to control the inflation that we world are heading towards. Part of inflation will stem from Asia who living standards are increasing. The higher wage areas of the world seeking to thwart inflation with interest rates will not realize this is commodity based inflation caused by an increase in world living standards and subsequent demand. Asia's own inflation is being passed on to her labor users. Interest rates will increase to halt inflation. Higher rates hamper start up costs so there will be little positive affect with any of interest tinkering .. China has now left it to her commercial banks to determine interest rates. This an attempt to allow self adjustment of rates but she remains pegged to a decreasing value dollar which insures inflation for her as well as the US. Add to this US$ is plagued with additional cost of war. World is plagued with terrorism world fear and the increased costs of protection. . The mere thought that terrorism could happen anywhere means increases the costs of self defense so you have inflation world wide. The other question as clearly stated in the review of the government was the connection base of possible Iraq and Al Queda which from my point of view does not connect al queda but to me leaves a question to every nation in the mid east wondering about if the US could invade their grounds. If you want to speak about this war in terms of human rights and include women's rights Iran would definitely be next or should of been first. This type of thought process does not ease world tensions. There of I strongly believe because of total world uncertainty and lack of trust all the pieces are in place for continued rise in gold. How high?