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Gold/Mining/Energy : Global Platinum & Gold (GPGI) -- Ignore unavailable to you. Want to Upgrade?

To: Zeev Hed who wrote (4709)	1/9/1998 10:52:00 AM
From: Gene Veinotte	Respond to of 14226

Absolutely! Gene

To: Zeev Hed who wrote (4709)	1/9/1998 11:06:00 AM
From: Henry Volquardsen	Respond to of 14226

Zeev, I avoid the IPMCF thread myself. They don't seem to have enough to be economical and I think there is a lot of wishful thinking over there. The only two I monitor and have the slightest interest in are NAXOF and GPGI. As far as what is going on in Asia. Some of the biggest increases in money supply have been Japan. Some of the increase in money supply is to counteract the disappearance of money as worthless assets are written to zero. Yes there has been some decrease in velocity and an increase in supply counteracts that but it is a tricky game. It is tough to monitor when money velocity picks up again and with an increase in money stock it becomes more dangerous. Also the key to containing inflation is being pre emptive. If you wait until you see the velocity pick up you will be playing catch up. Yes the devaluations of the tigers vis a vis the dollar has reduced their money supply relative to the dollar. But the value of the devaluations is that it allows them export more competitively so they can restore their economic underpinnings. But if they double their money supply in order to keep the dollar value of the money supply constant that will have domestic inflationary consequences that would offset their devaluation gains. But it is not the SE Asian tigers that I am keping an eye on, it is Japan. I also believe the biggest inflation wildcard will be post EMU Europe. Also to be fair I am not concerned about an explosion in inflation. Also I am a contrarian by nature. I look at all the global concern right now about deflation, all the government and media attention to the issue and the multi billion dollar bail out packages and one thought comes to mind. It is never the problem you are focused on that winds up biting you in the end.