Can anybody here envision a scenario where interest rates will actually rise ? and any guesses, at all, on time frame(s) ? Just curious . . . . .
When/if the dollar weakens in a serious way (it has already started) the Fed will be forced in between a rock and a hard place. That may be the nightmare keeping Greenie up at night. That is why the guys at GATA have been clammering for gold's manipulation. If the price of gold is kept down, then the dollar 'seems' strong. If/when gold continues to rise and the dollar weakens (they have established a recent negative correlation) then this scenario could unfold. I think Greenie has no clue what is going on but all he can think about is to ram his fingers into the new cracks to stop the water and hope that the dam holds up. www.gata.org
Who is keeping the price of gold down? As far as I know it has gone up this year. Those guys at gata are nuts.......they are so obsessed with conspiracies that they are having serious trouble with reality.
That is certainly a plausible scenario and I agree with Greenspan trying to keep a finger in the dike. The dollar index is holding on by its fingernails to around the 105 level. If that support breaks I do not believe it will be very good for the markets. Gold did have a nice rise up until about the first of June but has backed off (with minor flucuations) since then.