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


To: elmatador who wrote (60807)2/7/2010 10:34:16 AM
From: gregor_us  Read Replies (4) | Respond to of 218038
 
Cheers. I should go back and read my previous messages more often. That Obama quote struck me at the time as being very key. And it turns out to have been so.

My current question: how do the FED and Congress unleash another wave of stimulus that makes it seem like the FED is not doing a climb-down from its stated position to end monetization?

Like others, I just don't see how the FED stops QE via whatever vehicle they choose: MBS, Treasuries, whatever.

G



To: elmatador who wrote (60807)2/7/2010 1:33:11 PM
From: koan  Respond to of 218038
 
I agree, deflation must be avoided at all costs.

We know how to deal with inflation, but not deflation and deflation woul dsurely sink us. Inflation (although unfair)would lighten our load, although I am not sure how we deal with the attendant higher interest rates? Very complicated.

The equation I have been using for gold is that the US cannot allow the dollar to rise too far and as there is a better than 90% inverse correlation with the dollar should put a floor under gold.

The last few weeks have sure blown that theory and made me wonder-lol?? I am sure it was a flight to safety given the euro's problems.