Market WrapUp (05-06-03)

Financial Sense Online ^ | 5/6/03 | Jim Puplava

[Concentrate]

Yes, but a half century of it is not an entirely bad record.

[agincourt1415]

You, me and Neil Cavuto share the same opinion of GREENSPAN.

[steveegg]

Are you sure that the fed doesn't want the US to fall off the cliff and become a 3rd world country?

You beat me to the punch. That does seem to be the agenda for most of Greenspan's term (except for 1998, when the realization of that goal would have cost Clinton his job).

[arete]

Yes, but a half century of it is not an entirely bad record.

I believe that 50 years of fiscal discipline would have served us well. As it is, we're getting close to the time when the piper is going to demand payment for all that dancing.

Richard W.

[arete]

You, me and Neil Cavuto share the same opinion of GREENSPAN.

That is one of the few things that Cavuto has ever been right about.

Richard W.

[dalereed]

"That does seem to be the agenda for most of Greenspan's term"

It's not just Greenspan, in my estimation it was the origional purpose of starting the Federal Reserve/central bank.

The entire communist agenda is central to reducing the industrialized countries to poverty level since no world government can be formed/succede unless the world population is equal and they know well that they can never raise the rest of the world to our standards.

Their plan is succeding at race horse speed when you remember that their goals are not set to be met within their lifetimes but only that advancment is made toward them, something that is hard for us to understand since we set goals to be achieved within our lifetimes.

I still believe that the depression of the 30s was planed and perpetrated to steal the industrial wealth of the nation and the coming depression is being set up to steal the real estate of this nation through the crashing of the real estate bubble that they have intentionally created.

[Soren]

IMO a lower dollar will help bring the current account deficit comes into line, make our exports more competitive and help bring the moribund manufacturing sector off life support. The problem is that foreigners own a large amount of US assets (e.g. roughly 45% of the Treasury market) and foreigners, including foreign CBs, hold a lot of US$. No one wants to sit tight holding a depreciating asset. So once a falling dollar gets going, it can have a reinforcing effect as foreigners sell US assets and dollars, pushing US markets and the dollar down further. This is a double whammy for foreigners, as they take a hit on the asset value in dollars and the conversion to their domestic currency, and can be expected to result in further sales of US assets as more foreigners bail out, etc, etc. I think the plan is for a gradual controlled descent, but it will be very hard to achieve, IMO.

[SierraWasp]

What do you make of this "deflation" rumor?

11:33AM Crescenzi: Fed bond purchase rumors in Treasury market by Rachel Koning

Among the factors driving a Treasury rally, and pushing benchmark yields to two-month lows, is speculation the Federal Reserve will purchase Treasury securities in the open market in an effort "to boost reserves in the banking system in order to combat deflation pressures," said Tony Crescenzi, analyst with Miller Tabak. "This rumor, which has circulated in the markets over the past few weeks, was reinforced by the Fed's policy statement wherein the Fed indicated a concern over the potential for a further decline in the inflation rate," he said.

From: http://bigcharts.marketwatch.com a few minutes ago.

[DarkWaters]

I think the plan is for a gradual controlled descent, but it will be very hard to achieve, IMO.

No arguments from me on this, this snow balling into something worse as the dollar goes down will indeed be very hard to control.