EUROPE & ASIA: Japan's interest rates fall below zero

Financial Times/FT.com ^ | Jan 25, 2003 | Mariko Sanchanta and Christopher Swann

[Porterville]

This is terrible news and perhaps the most frightening. If North Asia goes what will be the chain of events??? Any takers??

[jwh_Denver]

I understand that he was given some sort of financial compersation not to push the issue at the time.

This was in my mind that there would be some smoothing over to keep it from getting out. I did not here of the GG case at all. Kudos for you knowing this but if I did not see this then I wonder who did? Or more importantly, who didn't? If delivery problems become widely known then the sharks will go into a feeding frenzy. Not necessarily goldbugs but pushers and momentum players. If this happens, which I believe it will, gold will blast off and then correct itself. It's still a fuzzy picture but long term I have no doubts about what gold will do.

[arete]

The GG information was out there and was also mentioned in the "Checkmate" report that was making the rounds 5 or 6 weeks ago.

"Rob McEwen, the irrepressible CEO of Goldcorp, a producer that proudly eschews hedging, recently tested the liquidity of the spot market by placing an order to purchase 40,000 ounces and encountered significant constraints in availability"

The report itself is quite extensive and complicated but you are welcome to work your way through it. Here's the link:

Moving Toward Checkmate

Richard W.

[imawit]

But also everyone's forgetting that the bullion banks could be making millions if they just sat on the gold they have.

Whose to say they won't change their viewpoint and become investors at 20-40% per year rather than leasing at 1-2%.

And also want all their gold back which has appreciated close to 37% since 911. But then they could say they earned that much already. Their ledger says they still on the gold they have leased. But then they may want to prove that they still do own that gold on their ledgers and call it all back in.

Interesting scenario huh. Kinda like a game of chicken before some event occurs where they could really use the value gained but can't get the gold back. Maybe it's damed if you do and damned if you don't. Really bad position to be in when you're talking billions and a no way out scenario.

[Tauzero]

"Sounds to me like it's almost time to buy...."

Perhaps, but it would've been much better to buy back near $260/ounce.

[Orion78]

I almost did, I was considering buying about 3000$ worth about a week before Sept 11th. I decided I shouldn't risk it. Wish I had now.

[arete]

When it was trading in the 3teens, I said that I was going to wait until it fell back under 300 to buy. Everyone (the pundits) said it would. Geez.

Richard W.

[steve50]

Looks like the futures market is taking another dive this morning, should be an interesting next couple of weeks.

[arete]

Looks like the futures market is taking another dive this morning,

Don't trust the futures. They are too easy to manipulate to get the heard all moving one direction. I expect them to defend the averages today and throw all they have into keeping the market up.

Richard W.

[steve50]

Seems like the big boys are taking advantage of the interest rate to re-schedule debt, instead of removing it from the books. Taking advantage of the inevitable interest rate increases?

[arete]

Seems like the big boys are taking advantage of the interest rate to re-schedule debt, instead of removing it from the books

Everyone is doing it from the government on down to the average guy on the street. Using debt to pay debt thereby extending the day of reckoning. No way out of it because if the debt isn't getting bigger, then the economy will contract.

Richard W.