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Politics : Welcome to Slider's Dugout -- Ignore unavailable to you. Want to Upgrade?

To: c.hinton who wrote (3110)	10/29/2006 10:23:34 AM
From: wsw1	Respond to of 50724

rising rates as well as falling rates are good for gold in the current economic environment.... the fed is caught between a rock and a hard place...they know it, as well as the large investment banks do.... raise rates too far, and you have a recession...bad for the economy...bad for the dollar...good for gold... lower rates, and you induce more credit-based inflationary pressures...might be good for the economy short term...bad for the dollar...good for gold... we are truly beyond the point of no return... the only way to repair the gross imbalances within the world economic system is for gold to do it's thing again...this will happen once gold trades over $887.50...following that the vast amount of liquidity marked as momentum, hedge fund (whatever you want to call it) money will push gold towards new all-time highs north of $1000/oz... just think of what gold juniors and explorers will be worth at that point down the road...