N.Y. Fed's Repo Move Clips Gold - WSJ.com

N.Y. Fed's Repo Move Clips Gold - WSJ.com:

"Gee - let's see.

The government plans to borrow and borrow (read: more demand for money).

The government (plus others) don't project a big decrease in the unemployment rate (read: not much growth and not much more money to tax).

Business and consumers need money to borrow. The government needs money to borrow. The Fed is going to drain reserves (read: less money to borrow).

Oh yes, and the government wants the banks and brokers to have more equity (i.e. less leverage) - (read: less money to lend).

So, more demand for money, less money to lend? Could this mean higher (and much higher) interest rates?

And, if interest rates have to go up; and, we've already been told tax rates on business will be going up, can we expect job growth?

So, if no job growth (i.e. 16.8 or whatever percent one likes unemployment), more and more borrowing, what will the Fed do?

In the 1970's the term was 'stagflation'. Sure sounds like it will be worse this time around.

Hmmm, gold????"