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Monday, October 29, 2007

Bernanke, `Reluctant' to Cut Rates???

Bloomberg has a story on how Bernanke is reluctant to cut rates. It talks about how he has talked about how "challenging" it is to make policy.

http://www.bloomberg.com/apps/news?pid=20601109&sid=aEnZejdWUzMk&refer=home

Isn't this the same thing they did last time? It seems like they want to surprise the markets to get the bigger bang for the buck. They are talking Hawkish but their policy is Dovish. Similar to the way Henry PaulSIV talks about the dollar and the administrations dollar policy.

As usual, the question of cutting rates is by how much and not whether to do it. Gold keeps going up and dollar keeps losing it's value. But it doesn't matter because rising dollar does not cause "CPInflation."

In other dollar news, the Yuan is rising .3 percent against the dollar. Mr. PaulSIV is quoted in the article as saying "They need to have the renminbi appreciate more quickly so it reflects economic fundamentals.."

Mr. PaulSIV, the chinese are helping the US by keeping dollar high. Be careful what you wish for. It seems odd to me that at time when there is no support for dollar, PaulSIV is trying to remove the biggest support the dollar has.

Hey Mr. PaulSIV, even the Maldives they don't like to accept the dollar anymore. Why is this important? According to William Pesek : the demise of the dollar!

http://www.bloomberg.com/apps/news?pid=20601039&refer=columnist_pesek&sid=ahcvx7iJ4tXM


I have a question, has there been any rate cuts in the past when the stock market was hitting new highs?

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