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

To: Surething who wrote (6451)	1/21/1998 10:38:00 PM
From: Gabriela Neri	Read Replies (4) \| Respond to of 116756

US cut a deal with China, IMO. China will not devalue currency in return for something-not out of the goodness of their heart.. Japan is going to reflate, or attempt to reflate in a serious way the likes of which have not been seen before. The promise US made to China was to engage in a policy to rehabilitate the Asian currencies. Of course US had to promise this, because otherwise, China would have no choice but to devalue, and thus unleash a new round of destructive competitive devaluations. China cant afford to allow their economic growth to stagnate due to tremendous dislocations going on as a result of their downsizing the state owned enterprises. So, US has to fulfill its promise. Only way to rehabilitate Asian currencies and reflate world economy is to engage in a coordinated (globally) round of interest rate reductions. It just makes too much sense. Asian currencies can not be allowed to remain as devastated as they are. Look for coordinated G-7 policy response, with a reasonably probable chance of coordinated interest rate cuts around the globe. There is a plan and the clues are beginning to emerge. Good for gold, good for bonds(initially) but bad later for bonds.