The stock market wants a rate cut.

It is sliding because, Bernanke and Paulson starting talking about one-off tax rebates as a solution, and have not made much further noise about rate cuts.

What’s going on behind the scenes? President Bush recently flew to the Middle East “to ask for more oil.” Could it be that he heard some striong language from the Saudis and others about how unhappy they are about the sliding dollar? If so, that may explain why Washington is seeking to get away from such a strong reliance on rate cuts. Further cuts of 0.5% or 0.75% in the next few months would clobber the dollar. It seems that Bernanke and Paulson are struggling to find another way to restore confidence without the rate cuts.

The message from the market is loud and clear: Rates cuts now, or it will coninue its slide.

Paulson and Bernanke dare not mention the weakness of the dollar, but they are clearly concerned, and so are US trading partners, and those with their sovereign wealth invested in the US.

The US is now in an uncomfortable box, and those betting on the hyperinflation scenario are going to to have to live few a few more hours, days, or weeks of doubt. And maybe even a period where Bernanke’s confuses and frustrates the markets. I never ever thought I would say this, but I am beginning to miss Greenspan’s decisiveness.

Well done..

Great Podcast and not one mention of Uranium?!!!

Michael - Perhaps a summary below each new webcast, ie “James Turk of Goldmoney sees a big year for silver, with it perhaps reaching $30 an ounce”. This what Dom has written for MoneyWeek and this is a good teaser for readers - they’ll want to know more.

Also an overview of each company featured, so when say Harry Adams of Emed Mining was featured, EMED’s share price, mar. cap, NAV, forthcoming news etc are all listed for quick reference while listening.

A summary of your comments Michael, would also be excellent. I know all this takes time = money etc, but if some of this data is already being produced for other publications, then may be it could be re-produced here?

This is the year to be focussed, very focussed.

Good luck all.

+ Several of us are bearish on Sterling from $2.00-type levels. Falling North Sea oil production was mentioned by Rogers, Faber, and Zapata George. Sterling will be hurt by its emerging Property slide. The BofE may have to drop rates to help banks and housing. When they do, Sterling may slide, even against a weak dollar.

+ Food and agricultural commodities are likely to be helped by all the CB pumping

+ High inflation (or hyperinflation) is not likely until after a US recession hits. And only then, if the conditions become bad enough, that it is seen as a lesser evil than economic stagnation.

Thread: http://www.greenenergyinvestors.com/index.php?showtopic=2676 (Join discussion there)