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Post# of 42555
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Re: Ataglance2 post# 6487

Saturday, 02/03/2007 1:28:08 PM

Saturday, February 03, 2007 1:28:08 PM

Post# of 42555
This how it works:

If gold goes up that means inflation is goin up.
If inflation goes up you need to raise interest rates to counter thus the German Bund goes up.
If the German Bund goes up then more people are gonna need euros to buy the bund.
If The EUR/USD goes up then the european exporters are screwed.

The problem is that the M3 money supply exploded and they HAVE TO RAISE interest rates to control it. But guess what? With all that cheap money out there the European stock market exploded up.

So if Trichet raised interest rates the european stock market will crash hard.

Trichet should have never let the money supply get out of hand like that!
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