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Strategies & Market Trends : ahhaha's ahs -- Ignore unavailable to you. Want to Upgrade?

To: ahhaha who wrote (10286)	11/23/2007 12:46:06 PM
From: ahhaha	Respond to of 24758

Anent to my previous remarks, looks like gold is in a topping phase. This indicates that world cash is tightening, and that implies that interest rates are being tightened outside of effects of term tightening being done by RE committed banking institutions, and what FED is doing with monetary policy. FED will have to follow suit eventually, because the black market in interest rates always rules. What may be the intrinsic cause for this? It may be that interest rates are finally starting to bite in China.

To: ahhaha who wrote (10286)	11/23/2007 4:31:20 PM
From: rich evans	Read Replies (1) \| Respond to of 24758

How can the Fed control the 10 year Treas bond rate? It is under 4% and headed lower it seems. This would indicate that the FF rate is too high as the market for short 3 month paper is much lower then the FF rate. I think the Fed must follow the market which is lowering FF rate even though you think the FED should raise. Dollar value does not seem to be controlled by FF rate. When FF rate was very low in the 1% range dollar was much stronger. Supply of dollars seems to exceed the demand these days but the decline in dollar has been gradual. The Feds projections for inflation and GNP growth for 2008 and 2009 are interesting to me. They say inflation stay at 2% or so. This must mean they think commodity/oil prices have reached an end to increases- a Patinkin equilibrium? So only monetary inflation matters which they plan to keep in check. Rich