11/08/2004

Extreme Economic Numbers

Hello!

The economic numbers are coming in with extremes. New low on the dollar. Sixteen year high on gold. We may see a possible 1/4% interest rate hike by the Fed this week. What is causing all this?

We could run with the media herd and say that this activity is merely a "reflection of the election". However, we believe that the possible catalyst is the Chinese Government being tired of having their currency tied to a dropping dollar. In order to let their currency trade more freely, they may purchase fewer US Treasury Bonds. If this were to occur, then the US Government may consider raising interest rates on its bonds in order to attract new buyers.

Now is a good time of year for donors to consider adding your organization as a partial beneficiary to their retirement account. What an easy way for your organization's supporter to become philanthropists!

Terri G. Millson, CIMC President

Ray Dicius, GEPC LPL Branch Manager