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

To: Albert V who wrote (5195)	1/4/1998 12:27:00 AM
From: Alex	Read Replies (2) \| Respond to of 116753

CHICAGO ( Reuters ) - Federal Reserve Chairman Alan Greenspan Saturday warned of dangers if the U.S. economy should enter a period of falling prices, reinforcing beliefs he is not inclined to raise interest rates. In his most detailed talk yet on the potential for deflation, Greenspan said a debate on the issue was hampered by faulty price measures and lacked clarity."Some observers have begun to question whether deflation is now a possibility," the central bank chief told the annual meeting of the American Economic Association ( AEA ) . "Even if deflation is not considered a significant near-term risk for the economy, the increasing discussion of it could be clearer in defining the circumstance," he added. Deflation has not occurred in the United States on a broad scale since the Great Depression of the 1930s. Greenspan declined to say whether there was an imminent risk of a deflationary cycle, but said it could be at least as bad for the economy as inflation. "Both rapid or variable inflation and deflation can lead to a state of fear and uncertainty that is associated with significant increases in risk premiums and corresponding shortfalls in economic activity," he said. Economists listening to Greenspan's speech were struck by the attention on deflation after decades in which the Fed has made the fight against rising prices its overriding mission. "Today, he devoted a full 15 minutes to discussing the negative consequences of deflation," said Peter Kretzmer, an economist at NationsBank. "It indicates that Greenspan will take a lot of care before he decides to tighten monetary policy and there is even a possibility of an easing." Inflation, running at 2.1 percent, is at its lowest level in a generation and Fed research suggests even that figure may be double the actual rate of price increases. Asia's financial crisis has put a spotlight on deflation as producers in the battered region are expected to unload a glut of cheapened goods, bringing down global prices. Before the Asian troubles mounted, Fed policymakers were leaning in favor of higher interest rates because of worries that the nation's tight labor market would generate wage pressures that could feed inflation. Allen Sinai, chief economist at Boston-based Primark Decision Inc., said Greenspan's remarks on Saturday clearly showed that deflation was at least on the Fed's radar screen. "It's a tip-off they will not raise interest rates," he said. "The Fed will be on guard in either direction." Fed policymakers next meet on Feb 3-4 to consider interest rates. The key overnight federal funds rate currently stands at 5.5 percent and has remained unchanged since last March. Discussing deflation, Greenspan drew a distinction between declines in the prices of assets, such as stocks and houses, and those of goods and services. He said a gradual fall in asset prices had contributed to the recent troubles in Asia but that in most cases this type of deflation could be absorbed by the economy. "But historically, it has been very rapid asset price declines -- in equity and real estate, especially -- that have held the potential to be a virulently negative force in the economy," he added. The Fed is charged with seeking an environment of stable prices, in which neither inflation nor deflation is a threat, while maintaining the maximum level of employment. Greenspan said the "remarkable progress" that had been made in bringing down inflation had brought the issue of price measurement into especially sharp focus. He said there were "uncertainties surrounding the accuracy of our measured price indexes," adding his weight to criticism of the main U.S. inflation gauge, the consumer price index. Inflation had declined to the point where even an upward bias of a few tenths of a point mattered, he said. "Inflation has become so low that policymakers need to consider at what point effective price stability has been reached," he noted

To: Albert V who wrote (5195)	1/4/1998 2:42:00 PM
From: Crimson Ghost	Read Replies (1) \| Respond to of 116753

Albert: Right on! We may see the following headline soon -- "Fed cuts rates, stocks plunge".

To: Albert V who wrote (5195)	4/18/2002 8:31:16 AM
From: long-gone	Read Replies (1) \| Respond to of 116753

BW2037 APR 17,2002 4:01 PACIFIC 07:01 EASTERN ( BW)(NY-WORLD-GOLD-COUNCIL) World Gold Council Creating New Relevance and Image for Gold Business Editors NEW YORK--(BUSINESS WIRE)--April 17, 2002-- Australian meeting focuses on crucial Global Industry Issues More than 150 gold industry leaders, together with delegates and media from around the world gathered in Melbourne today to attend the World Gold Council Annual Meeting, the first to be held in Australia. The meeting focused on a number of global industry issues, including perception, demand and retention of gold and the liberalization of the gold industry in developing markets, such as China and India. It also considered the three functions of gold, as money, as jewelry, and as an industrial commodity. Addressing the Meeting today, Haruko Fukuda, CEO of the World Gold Council, said that the past few months had given a stunning demonstration of gold's value as an investment and that the World Gold Council was helping to influence the huge demand for gold triggered by the Japanese anxiety about the safety and soundness of their banking system. Meanwhile a new study with the World Gold Council by Bain & Co. had identified, researched and documented a longer term strategy to promote gold to individuals and institutions worldwide. "In this field as in so many others, new products need to be developed and designed to meet today's rapidly changing marketplace and we have made considerable progress along this road", she said. In discussing gold's continuing role in the world's financial markets and as an official reserve, Miss Fukuda said that governments continue to hold gold broadly for the same reasons as private individuals - because it is money that can be relied on in the long term. However, she warned of the threat to gold's role as an official reserve asset and said that the World Gold Council vigorously counters that threat at every opportunity. "The latest threat comes from an unexpected quarter - Germany's Bundesbank - but that too, I hope, has been contained," she said, adding that the markets muted reaction arose out of its growing confidence in the Washington Agreement on Gold and that this underlined the importance of securing a renewal of the agreement on appropriate terms. With regard to jewelry, the World Gold Council has had to remind consumers of gold's enduring values. Miss Fukuda said: "In a major advertising campaign launched in the US and Europe last year, we responded to the marketplace and began to move it again in gold's favour. With our latest development of that campaign we really are changing the way millions of people around the world think and feel about gold." "Gold", said Miss Fukuda, "has adapted to changes in the marketplace and the World Gold Council is helping to find new roles for it in today's market, as money, as jewelry, and as an industrial commodity". "Looking to the future, we recognize the constant requirement to innovate and refine the mode of our communication. To respond to the challenges of a rapidly changing environment in the gold industry, the World Gold Council is this year embarking on a strategic study of how gold producers can best promote gold collectively," she said. The World Gold Council is an international organization formed and funded by leading gold mining companies from around the world to promote and expand the market for gold and gold products through a research-driven approach to market and product development. Editors Note A full transcript of Miss Haruko Fukuda's speech is available upon request to Marston Webb or by visiting our website at www.marstonwebb.com. --30--kf/ny* sw/ny CONTACT: Marston Webb International, New York Victor Webb, 212/684-6601 marwebint@cs.com or World Gold Council, London Neville Wells, (011 447785) 903401 Neville.wells@wgclon.gold.org businesswire.com