Comments on: BoE Slashes Interest Rates 150 Basis Points

By: Pat G.

Pat G. — Thu, 06 Nov 2008 23:55:35 +0000

I agree. BW II would make a great TBP thread. Got plenty of candles. Need infrastructure. I’ve heard I might get some. LOL

By: Mark E Hoffer

Mark E Hoffer — Thu, 06 Nov 2008 22:24:46 +0000

Pat,

I hear ya, I’ll have to think about that some..

Though, to me, I think BW II would make for a good TBP post..

Past that, with those power failures, remember, it’s always helpful to have more than a few candles~..

By: Pat G.

Pat G. — Thu, 06 Nov 2008 21:53:18 +0000

Hey Mark sorry for the delay but we had a power failure. I think Poe’s introduction of HR6690 is the beginning of a coordinated effort by the G7 to reign in the price of gold by using the weak dollar as its excuse ahead of Bretton Woods II. I don’t see these actions as mutually exclusive. I could be wrong.

By: ReturnFreeRisk

ReturnFreeRisk — Thu, 06 Nov 2008 19:57:28 +0000

Good old fashioned, red-blooded, massively moral hazard inducing 150 bp rate cut. Way to go BOE !!! This is exactly what is needed. No idea if it will help. Proabably not.

By: Mark E Hoffer

Mark E Hoffer — Thu, 06 Nov 2008 17:56:29 +0000

Pat,

I had forgotten about Poe’s 6690, I agree, more manipulation is not what’s needed.

I was referring to this:
http://clusty.com/search?input-form=clusty-simple&v%3Asources=webplus&query=Bretton+Woods+II
idea, in general.

http://www.eurodad.org/whatsnew/articles.aspx?id=3008
more specifically, gives an intro. outline..

By: Pat G.

Pat G. — Thu, 06 Nov 2008 17:46:12 +0000

Hey Mark, I don’t think HR6690 gets passed. The horse has already left the barn. Targeting gold to firm the dollar is more manipulation. What’s happening in the Comex is that contractees are taking delivery then selling it (at a rather handsome profit) in the physical markets. The paper price is much lower than the “actual” physical price and that won’t last forever. That will be one hell of a short squeeze.

By: Mark E Hoffer

Mark E Hoffer — Thu, 06 Nov 2008 17:15:24 +0000

I’d like to understand what the prevailing take is on ‘Bretton Woods II’–

past that, to Katie’s point, I think the PMs, in the physical market, have started to pick up on “the race to the bottom”, the paper PM ‘markets’, specifically COMEX, seems ready to stand for a major stress-test basis the Dec. contracts..

By: Pat G.

Pat G. — Thu, 06 Nov 2008 16:56:41 +0000

“unexpectedly” There’s that word again. In addition, the ECB, Swiss and Denmark cut rates. Katie’s point is spot on…” the race to the bottom has begun”…for world currencies. Precious metals, especially silver due to the physical shortage are screaming buys right here. Not trying to persuade anybody just making a point.

By: devil_futility

devil_futility — Thu, 06 Nov 2008 16:33:52 +0000

So, I know Jim Cramer is not liked on this site, but if everyone was going to make big interest rate cuts shouldn’t they have done so more aggressively like he wanted?

By: slappy

slappy — Thu, 06 Nov 2008 15:18:58 +0000

gold up 14
all this liquidity has to go somewhere
smart people are buying gold