[RT] gold, yen, dollar and inflation.

["mr.ira" <mr.ira@xxxxxxxxxxxxx>]

Here is another opinion on what is happening in the 
markets.  He is also looking at inflation or stagflation and its effect 
up0on the markets. 
 


  
  
    
    
      
        
        
          
            
            
              
              
                <FONT 
                  class=ART_TITLE>Saturday, March 20, 2004, 
                  5:53:00 PM EST<IMG height=5 
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                  border=0>Gold 
                  Community Heads Up<IMG height=5 
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                  class=ART_DATE>     Author: Jim 
                  Sinclair<IMG height=5 
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            Japanese Authorities May Cease 
            Yen-Selling Interventions  Informed 
            discussions in Japan concerning the possibility that the Bank of 
            Japan (BOJ) might cease intervention in the yen is being seen in the 
            currency trading fraternity as a possible trap for the dollar bears 
            in terms of the yen. 
     

  
  
    
      
        
        
          
            
            However, reports of these discussions 
            lend credence to my sources who argue that the Federal Reserve is 
            scared to death of a potential inflationary price explosion caused 
            by Japanese market intervention. 
            The real purpose for that intervention is 
            nothing less than keeping the world's equity markets intact by 
            flooding it with liquidity via the purchase of all the dollars 
            raised in this process under the management of the NY Federal 
            Reserve Bank. I do not believe the BOJ can simply walk 
            away from intervention so my feeling is there will be some 
            technically-timed intervention by the BOJ in the dollar/yen 
            equation. Nonetheless, the use of this dangerous “Made in Japan” 
            Bernanke Electronic Money Printing Press has run its course. The 
            damage has been done.  It will take generations to set this 
            right. 
            A deceleration in the use of this 
            Japanese monetary experiment at the request of the Federal Reserve 
            now places the world's equity and bond markets in potential 
            jeopardy, setting up the probability of Stagflation and the 
            inclusion of inflation into the weak dollar 
            equation. All that being said,  I am changing my 
            strategy in gold and suggesting you do the same. Having bought 
            correctly and made some sales into strength, I will now hold the 
            balance of my position, adding to it on any price weakness but not 
            making any further sells at these levels. 
            If gold chops down in this breakout 
            phase, I will simply go to a full long position according to my 
            means and risk acceptance. I might consider a "Texas Spread" in gold 
            if the price is right over the next week . 
            The impact of running up historically 
            huge dollar amounts of intervention and splashing it willy-nilly 
            into the  bond market to maintain a false interest rate and 
            then falling away hard from that volume will push gold to 
            significantly higher prices in my opinion.  We will 
            still buy weakness and sell strength but the major change is that we 
            want a better price on the sells. 
            I'll keep you 
        posted.







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