Gold Over $400
Jude Wanniski
December 2, 2003


To: Ben.S.Bernanke@***.gov
Subject: Gold over $400
Cc: Ferguson

From Jude Wanniski, 3:37 pm 12/2/2003

The only way to get gold down is by increasing the demand for dollar liquidity or by reducing the supply of dollar liquidity. Once you got the funds rate down to 1%, the only way you could keep it there is by adding more liquidity than the market needs or wants. How you behave next week is very important... Probably no hike in the funds rate, although there should be, but you should at least mention gold, letting the markets know it is a concern. Just a helpful hint.

Jude Wanniski