Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Abner Hosmer who wrote (11182)	5/3/1998 6:59:00 PM
From: Alex	Respond to of 116906

Chirac- ECB president must be independent PARIS, May 3 (Reuters) - French president Jacques Chirac said on Sunday Wim Duisenberg would be an excellent president for the European central bank and clearly independent, now that he had been named. Speaking on French television about the position he took at the Brussels summit to launch the euro -- where Duisenberg was only chosen after tortuous wrangling -- Chirac said: ''I had a position which has nothing to do with the personality of Mr Duisenberg, who is a thoroughly eminent man, who has proved his worth and who will be an excellent president,'' he said. ''But I made two points -- the first is that the president of the central bank ... should be independent, that is true ... but he must be independent after he has been named,'' he said, referring to France's objections to choosing the candidate solely on the basis of the will of central bankers. ''Nothing is worse than letting politics manipulate interest rates in today's world,'' he said, discussing the euro-x council of European politicians that France proposed. ''This euro council does show that there is a political power opposite the power of the central bankers and I think that is a good thing,'' he said. Chirac said that for France, what was important was that it would have a prominent role in the bank from the outset. The summit chose Dutch central banker Wim Duisenberg as the first president of the central bank, but he said he would ''voluntarily'' step down after four years. A Frenchman, former Paris Club head Christian Noyer, will be his deputy for four years and following Duisenberg's departure, France's candidate, central banker Jean-Claude Trichet was slated to replace him for an eight-year term, Chirac said.

To: Abner Hosmer who wrote (11182)	5/3/1998 7:17:00 PM
From: Gabriela Neri	Respond to of 116906

Precisely my point, but I didnt mention it. There is a tie in to the economic depression or recession in Japan and the economic growth and liquidity bubble here in the USA. The liquidity they are creating in Japan with .5% interest rates, as you accurately point out, is finding its way over here in order to generate returns. That keeps the liquidity pumps primed over here and the real economy in Japan depressed as money exits its shores and currency. There is a beautiful assymetry between Japan and the US. And, this assymetrical process cant keep going this way forever without something giving in. We are , after all, dealing with societies also, not just numbers. And you speak of efficiencies, but inflation is a money thing-where too many dollars in circulation inflate the price of exisiting goods and services. I dont believe inflation is a cost driven process, as far as goods are concerned, outside of labor, its major constituent .