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Gold/Mining/Energy : At a bottom now for gold? -- Ignore unavailable to you. Want to Upgrade?

To: Mark Bartlett who wrote (1749)	9/30/1998 8:54:00 PM
From: ahhaha	Read Replies (1) \| Respond to of 1911

The Japanese banks are still pulling their dough out of duress, shrinking the base upon which their debt rests, making the whole thing a house of cards. The MOF will have to impose capital controls or the BOJ will have to start pumping. The T-Bond and gold both rose today. Either the world is deflating or the situation is what I claim, merely capital in flight and unsupported worldwide fear of windmills. If the BOJ would have started pumping six months ago, they wouldn't have themselves painted into a corner. They still believe that if they create a little money and bank cost of funds drops in half, that that serves to reverse the circumstance. It doesn't. You have to get aggressive. Now they are quaintly talking, talking, and talking about bigger tax cuts and maybe even a reserve requirement adjustment. While they fiddle, Japan burns. That is, Japanese banks vote no confidence and buy more US T-bonds exacerbating the base deterioration. Then we have FED. They generated a mountain of money to make people feel secure because they knew the glorious stock market was going to hit the skids. You'd have to be a Wall Street buzzer to have missed it. Instead of doing that they should not have shown their hand and jawboned BOJ to start the presses. That combo would have slowed the dollar flight. Maybe FED's strategy was to generate some monetary inflation and discourage the flight. Unlikely. The situation now is BOJ must pump and FED has to start backing off. Any other combo is trouble. If MOF continues their hoodwinking, they'll only make the windmills fly, and cause FED to get out the money lance to get them down. You can't lance a windmill just like you can't pull on a noodle.