GREY:RGVNF - Post by User
Post by
stocktalk2on Jun 13, 2006 1:19pm
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Post# 10983110
Z- it's about fear & greed
Z- it's about fear & greedFear is winning! Or maybe I should say the Fed is winning. If there is anything the U.S. hates it's when Gold is doing well. It highlights two weaknesses investors fear about the dollar. They got rid of their gold long ago, and the only thing that has ever backed the greenback is consumerism. When they see the world losing confidence like they have over the past 2 years they raise interest rates. That rock & a hard place is tricky business. Let's not forget that when the Fed raises interest rates they need to borrow a lot more money to pay the interest on several trillion dollars worth of debt. Government competing for dollars, with the only source being the taxpayers, will kill an economy everytime. But, since the Fed always over reacts until it's obvious to a 2nd grader, we keep getting these ridiculous swings. Big money loves it!