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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: BigBull who wrote (36730)	2/4/1999 11:23:00 AM
From: JungleInvestor	Respond to of 95453

All of these worldwide interest rate cuts, IMF bailouts and big government spending in Asia (e.g., Japan and Korea) that began in '98 will give a big upward boost to the price of oil as the year wears on - even if the "excess" oil inventory stays the same (which it won't)! Watch for the price of gold to also mount a steady rise. Money supply growth has a significant effect on the price of these two commodities. England needed to cut interest rates because it is in a recession. Greenspan could not cut rates yesterday because the risk of a global recession is still there (as exemplified by problems in Brazil which could cascade to the rest of Latin American). When the central banks need to raise interest rates to stem inflation, it will be too late because it takes 6 months to a year for these moves to start to have an effect on the money supply.