Top Financial News Mon, 11 Oct 1999, 4:05am EDT Dollar Falls Against Yen Amid Concern Federal Reserve May Soon Raise Rates By Tom Giles

Dollar Falls vs Yen on Concern That U.S. Rates May Be Raised

London, Oct. 11 (Bloomberg) -- The dollar fell against the yen on renewed concerns that the Federal Reserve may soon raise interest rates.

Worries about higher rates were revived Friday by a U.S. report showing rising wage costs and low unemployment. ``The record low level of unemployment and the persistent strength of domestic demand suggest that a further hike in (U.S. rates) may prove necessary,'' said Derek Halpenny, a currency economist at Bank of Tokyo-Mitsubishi.

Ok so---let us just see here--hmmmmmm!!

3 day weekend, but on MOn. The yen does its thang, while we celebrate columbus. No doubts what gold is going to do this week. What do you think the Stock market will be like around 10:00am on Tues.

Then watch the sudden buying towards the end of the day as the fed steps in one more time and stops it, but they cant stop the broad base now can they??

The prospect of higher borrowing costs could hurt U.S. stocks and bonds, damping demand for the U.S. currency

-- D.B. (dciinc@aol.com), October 11, 1999

Answers

Since the U.S. stock market is open and the Japanese stock market is closed today and gold opened five dollars lower in London, does that mean that your conclusion should be the exact opposite also?

-- X (X@X.MIL), October 11, 1999.

OK, I'll tell you "this wont be BACK breaker on Tues. AT the ring of the bell". Or, for that matter, any other day of this week. Worries about FED interest rate nudges have been up and down the flag pole for months, and have not appeared to have coincided with recent dollar/yen moves. IMHO, it would seem that other factors are having more influence on dollar/yen rates than worries about FED short term rate tinkering.

Jerry

-- Jerry B (skeptic76@erols.com), October 11, 1999.

Chief Financial officer, Jim Ray, of Barrick Mining stated the following:

"'As everyone on this list is surely aware, there is a screwy situation in the precious metals (especially gold) markets. The published spot price for gold does not seem to be the market clearing price for actual physical bullion. The prices published in the financial press are for PAPER gold -- that is, for promises purportedly payable in gold. But anyone who attempts to buy large quantities of actual physical bullion for immediate physical delivery/allocation is likely to be stonewalled. From our vantage point it appears that there is already a de-facto holiday involving the gold bullion banks. Slow delivery and rationing differs little from explicit default.'"

I think what this guy is saying is going to have a lot more to do with what's going to happen to our dollar and the stock market in a very short amount of time. Remember what the definition of panic is. You're about to experience one.

-- OR (orwelliator@biosys.net), October 11, 1999.

OR,

I'll venture to say that those who are short a bunch of gold are already experiencing panic or something close to it. Their major creditors may share some of that panic depending on the relative size of their credits to the shorts as compared to their other assets. However, the further one is from that end of the daisy chain, the less likely one is to feel their pain.

Jerry

-- Jerry B (skeptic76@erols.com), October 11, 1999.

Jerry, time to take them fogged up rose colored glasses off. Yeah, I know the mainstream media has been offering next to NO broadcasting on this development. Like the gold market and the price of gold doesn't matter to the average Joe. That ought to give you a clue right there. It isn't being broadcasted because it would hurry up the panic about to ensue. Actually, you can thank them for buying you a little more time at your current level of prosperity and comfort.

A default in the gold market is going to spell trouble for you, me and the rest of the world. Can you say financial lock up?

-- OR (orwelliator@biosys.net), October 11, 1999.

OR,

If most people still used gold coins as money, they might be concerned about the bullion short squeeze. But they don't, and they are not, and the mainstream media would have to work overtime to get people upset about it.

Some of the gold shorts will lose big time, and some of them may fold. Some of their creditors may be expected to lose big time, and some of them may fold. But whether short or creditor, if they have substantial assets, they either will survive or be acquired by some other outfit.

Getting from there to "financial lockup" would take some doing; if anyone has made the case, I would be interested in seeing it. Simply asserting it doesn't make the case.

Jerry

-- Jerry B (skeptic76@erols.com), October 11, 1999.