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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?


To: Moominoid who wrote (136)8/30/2005 9:40:48 PM
From: energyplay  Read Replies (1) | Respond to of 219194
 
I have been told that the Fed is contracting the money supply, selling bonds to soak up excess USD. This explains part of the USD up / Gold down.

This is based on the "Austrian" measurement of money supply, not MZM. I hope to learn the detail later.

This might be to slow/stop the housing bubble, or absorb all the re-patriated money US corporations are getting from overseas.

By the way, the yield curve inverted, with the 10 year under 4.09 % I think 5 year is slightly higher.