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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: Jim Ilchyshn who wrote (4121)	12/10/1997 3:11:00 PM
From: PaulM	Read Replies (1) \| Respond to of 116868

The news this morning mentioned another "coupon pass," stating that the Fed made yet another permanent addition to the money supply. It's now clear we are buying Japanese bonds with crisp, hot off the presses greenbacks. In the short run, (the very short run) this will stabilize interest rates (as banks can charge less for the use of money which is instantly more plentyful). Rates are headed up nevertheless, because of the obviously inflationary implications of these moves. This probably also helping the metals. There's no doubt that gold would be leading silver up if it were not for the CB's holding gold. Which says somethign about the irrationality of recent CB moves and statements. The virtues of filling bank vaults with interest bearing assest will lose appeal in the coming months, as the interest is paid in currency that becomes more worthless everyday