[e-gold-list] Re: Curious new thing

[Steve Schear]

At 10:11 AM 3/28/2007, John Kyle wrote:

>One thing that might explain it is an overall crunch to repay debts. If
>money is needed to pay off debts, then all markets of any kind could
>trend down as people try to get the ready cash.
>That, and as people pay off debts it tends to shrink the money supply,
>which would exacerbate the situation. A shrinking money supply can lead
>to asset deflation and a stronger fiat token, whether from private debts
>being extinguished or FED actions.
>
>So in that way, the rise and fall of all markets (stocks, gold, etc.)
>could just be riding on the same ebb and flow of the fiat money tide.
>
>No idea if anything like that is happening, but it could be one explanation.

Indeed.  The widely reported liquidations due to the Yen carry trade may be 
one cause.

Steve

 


---
You are currently subscribed to e-gold-list as: e-gold-list at kobly.com
To unsubscribe send a blank email to leave-e-gold-list-512001C at talk.e-gold.com

Use e-gold's Secure Randomized Keyboard (SRK) when accessing your e-gold account(s) via the web and shopping cart interfaces to help thwart keystroke loggers and common viruses.