merrill@gigi.DEC (Rick GIGI::Merrill DECRITE) (08/03/84)
Latest market activities look like we'er in for a rollercoaster ride for the rest of the year! US debt is now VERY financed by foreign money seeking our high interest rates which pushes up the value of the dollar so that if they want their money back to finance their growing economies they have to take a loss from the currency conversion; on the other hand as our deficit increases interest rates get poked up and back they come! Does this mean that non-US investors must sell gold, etc. to raise funds? Of course the US elections tend to increase everybody's jitters and people buy hard money. Also the Fed is loosing monitary leverage over inflation because of the widespread use of COLA (cost-of-living-adjustment) and variable rate mortgates (VAT's dat:?) THEREFORE inflation INCREASES with interest rates! [The heck with logic! Got any HOT tips?] Rick