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: Terry Rose who wrote (21775)	10/16/1998 12:04:00 AM
From: PaulM	Respond to of 116779

U.S. Wholesale Prices Up But Spur No Worries biz.yahoo.com P.S. Interesting that the Fed lowered rates on a day that the PPI numbers showed an uptick. The FED is wetting its pants over the liquidity crisis to the point where it's surendering the dollar. What this market still doesn't understand is that you can have price inflation and asset deflation at the same time. We can, and we will, have an inflationary depression ala Asia. Dollar fundamentals are now absolutely horrendous. I suspect the dollar will get crushed over the next six months.

To: Terry Rose who wrote (21775)	10/16/1998 8:09:00 PM
From: Little Joe	Respond to of 116779

Terry: RE: "I have a more cynical take on the surprise .25% rate cut. An election is less than three weeks away and with this rate cut and IMF funding the world is now saved at least until after the election." Well you could be right, but I still think the FED is scared because the situation is worse than we know. If the rate cut were politically motivated, I think it would have happened sooner so that the effect would be in the economy by the election. Also, it seems from all that has been published that the FED was worrried about inflation. These interest rate cuts at this stage in the economic cycle practically assure inflation. It seems to me that this was motivated by a lot more than just political considerations. It will be interesting to see how this plays out. If you are right we should see rate increases shortly after the elections. Live long and prosper, Little joe