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

To: long-gone who wrote (25665)	1/8/1999 11:18:00 AM
From: Hawkmoon	Respond to of 116871

Milton Friedmen has a "sock-puppet" in Lawrence Kudlow. Apparently, they feel that since the Fed reacted to inflationary pressures of commodities, especially oil, back in the '80's, they should be easing rates and increasing money supply to deal with deflationary pressures on the CRB as well. Makes sense to me.... except if they fail (which the powerful physical and psychological effects of Y2K on investor's decision making indicate is quite probable), the result will be a collapse in confidence. Increasing liquidity/money supply is a euphenism for "printing money". In deflatinary times, it is necessary for price stability. But should the financial and economic stimulus fail, then it becomes inflationary and we find ourselves becoming larger versions of Japan where no matter how low we lower rates, we can't boost economic growth or profits. (relatively speaking) Btw, the 11 CB's of the new Euro are believed to have as much as 30% backing in gold. That has been the worry of the markets in believing that these bankers can sell off gold to prevent a confidence crisis in the Euro or dollar, both of which would be bad for price stability. Regards, Ron