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<channel>
	<title>Diamonds are a Girl&#039;s Best Friend &#187; Interest Rates</title>
	<atom:link href="http://www.antonne.com/category/interestrates/feed/" rel="self" type="application/rss+xml" />
	<link>http://www.antonne.com</link>
	<description>Thoughts and Opinions on Financial Markets</description>
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			<item>
		<title>The Bottomless Punchbowl</title>
		<link>http://www.antonne.com/blog/the-bottomless-punchbowl/</link>
		<comments>http://www.antonne.com/blog/the-bottomless-punchbowl/#comments</comments>
		<pubDate>Fri, 19 Mar 2010 17:01:16 +0000</pubDate>
		<dc:creator>antonne</dc:creator>
				<category><![CDATA[Blog]]></category>
		<category><![CDATA[Interest Rates]]></category>
		<category><![CDATA[boe]]></category>
		<category><![CDATA[capacity utilisation]]></category>
		<category><![CDATA[fed]]></category>
		<category><![CDATA[fomc]]></category>
		<category><![CDATA[GDP]]></category>
		<category><![CDATA[gilts]]></category>
		<category><![CDATA[lone hawk]]></category>
		<category><![CDATA[old adage]]></category>
		<category><![CDATA[punchbowl]]></category>
		<category><![CDATA[Treasuries]]></category>
		<category><![CDATA[unemployment rate]]></category>

		<guid isPermaLink="false">http://www.antonne.com/?p=115</guid>
		<description><![CDATA[There is an old adage about the primary role of a central bank being to play the party-pooper.  William McChesney Martin, the Chairman of the Federal Reserve from 1951 to 1970, famously said that the job of a good central banker was to take away the punchbowl just as the party gets going.  i.e. Raise [...]]]></description>
		<wfw:commentRss>http://www.antonne.com/blog/the-bottomless-punchbowl/feed/</wfw:commentRss>
		<slash:comments>2</slash:comments>
		</item>
		<item>
		<title>Fed gets its Ducks in a Row</title>
		<link>http://www.antonne.com/interestrates/fed-gets-its-ducks-in-a-row/</link>
		<comments>http://www.antonne.com/interestrates/fed-gets-its-ducks-in-a-row/#comments</comments>
		<pubDate>Fri, 26 Feb 2010 06:19:06 +0000</pubDate>
		<dc:creator>antonne</dc:creator>
				<category><![CDATA[Interest Rates]]></category>
		<category><![CDATA[3 month libor]]></category>
		<category><![CDATA[banks]]></category>
		<category><![CDATA[Bernanke]]></category>
		<category><![CDATA[deposits]]></category>
		<category><![CDATA[discount rate]]></category>
		<category><![CDATA[dollar]]></category>
		<category><![CDATA[dual mandate]]></category>
		<category><![CDATA[ducks]]></category>
		<category><![CDATA[ECB]]></category>
		<category><![CDATA[exit strategy]]></category>
		<category><![CDATA[fed]]></category>
		<category><![CDATA[fed funds rate]]></category>
		<category><![CDATA[Financial Times]]></category>
		<category><![CDATA[FT]]></category>
		<category><![CDATA[quantitative easing]]></category>
		<category><![CDATA[rate hike]]></category>
		<category><![CDATA[unemployment rate]]></category>

		<guid isPermaLink="false">http://www.antonne.com/?p=462</guid>
		<description><![CDATA[Last Thursday the Fed raised its discount rate by 25 bps to 0.75%, as highlighted 8 days previously in Bernanke&#8217;s Exit Strategy speech on 10 Feb 2010.  As a result it now stands 50 bps above the upper limit of the current 0% &#8211; 0.25% range for the Fed Funds rate.  The Fed also took the opportunity [...]]]></description>
		<wfw:commentRss>http://www.antonne.com/interestrates/fed-gets-its-ducks-in-a-row/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>Merkel Re-ignites the Convergence Trade.</title>
		<link>http://www.antonne.com/interestrates/merkel-re-ignites-the-convergence-trade/</link>
		<comments>http://www.antonne.com/interestrates/merkel-re-ignites-the-convergence-trade/#comments</comments>
		<pubDate>Fri, 12 Feb 2010 06:28:10 +0000</pubDate>
		<dc:creator>antonne</dc:creator>
				<category><![CDATA[Interest Rates]]></category>
		<category><![CDATA[budget deficits]]></category>
		<category><![CDATA[bunds]]></category>
		<category><![CDATA[convergence]]></category>
		<category><![CDATA[devalue]]></category>
		<category><![CDATA[drachma]]></category>
		<category><![CDATA[Germany]]></category>
		<category><![CDATA[Greece]]></category>
		<category><![CDATA[GSP]]></category>
		<category><![CDATA[IMF]]></category>
		<category><![CDATA[Merkel]]></category>
		<category><![CDATA[trade]]></category>
		<category><![CDATA[UK]]></category>

		<guid isPermaLink="false">http://www.antonne.com/?p=451</guid>
		<description><![CDATA[German Chancellor Angela Merkel has extracted the necessary promises from Greece that they will be good in future and properly respect the rules of the euro-zone&#8217;s Growth &#38; Stability Pact (i.e. bring their budget deficit back down to less than 3% of GDP).  Whilst the bigger &#38; stronger countries within the euro haven&#8217;t quite worked [...]]]></description>
		<wfw:commentRss>http://www.antonne.com/interestrates/merkel-re-ignites-the-convergence-trade/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>The PIIGS will escape slaughter.</title>
		<link>http://www.antonne.com/blog/the-piigs-will-escape-slaughter/</link>
		<comments>http://www.antonne.com/blog/the-piigs-will-escape-slaughter/#comments</comments>
		<pubDate>Fri, 05 Feb 2010 12:10:27 +0000</pubDate>
		<dc:creator>antonne</dc:creator>
				<category><![CDATA[Blog]]></category>
		<category><![CDATA[Interest Rates]]></category>
		<category><![CDATA[bond markets]]></category>
		<category><![CDATA[dollar]]></category>
		<category><![CDATA[ECB]]></category>
		<category><![CDATA[enhanced credit support]]></category>
		<category><![CDATA[euro]]></category>
		<category><![CDATA[Euro-zone]]></category>
		<category><![CDATA[government bonds]]></category>
		<category><![CDATA[Greece]]></category>
		<category><![CDATA[Greek]]></category>
		<category><![CDATA[Jean-Claude Trichet]]></category>
		<category><![CDATA[PIIGS]]></category>
		<category><![CDATA[Portugal]]></category>
		<category><![CDATA[QE]]></category>
		<category><![CDATA[quantitative easing]]></category>
		<category><![CDATA[Spain]]></category>
		<category><![CDATA[sterling]]></category>

		<guid isPermaLink="false">http://www.antonne.com/?p=435</guid>
		<description><![CDATA[The Euro continues to trend lower against the Dollar as the recent turmoil in Greece’s government bond markets has started to spread to Portugal and Spain too.  Events are starting to spiral out of control, evidenced by 10-year Greek bond yields rising from below 6% to more than 7% over the past few weeks (inflicting losses on the [...]]]></description>
		<wfw:commentRss>http://www.antonne.com/blog/the-piigs-will-escape-slaughter/feed/</wfw:commentRss>
		<slash:comments>3</slash:comments>
		</item>
		<item>
		<title>Hoenig the Hawk Hoists the Flag</title>
		<link>http://www.antonne.com/interestrates/hoenig-the-hawk-hoists-the-flag/</link>
		<comments>http://www.antonne.com/interestrates/hoenig-the-hawk-hoists-the-flag/#comments</comments>
		<pubDate>Fri, 29 Jan 2010 20:30:22 +0000</pubDate>
		<dc:creator>antonne</dc:creator>
				<category><![CDATA[Interest Rates]]></category>
		<category><![CDATA[bond market]]></category>
		<category><![CDATA[CRB index]]></category>
		<category><![CDATA[dollar index]]></category>
		<category><![CDATA[dx]]></category>
		<category><![CDATA[economic recovery]]></category>
		<category><![CDATA[fed]]></category>
		<category><![CDATA[fomc statement]]></category>
		<category><![CDATA[Hoenig]]></category>
		<category><![CDATA[rate hike]]></category>
		<category><![CDATA[US Dollar]]></category>
		<category><![CDATA[US Treasuries]]></category>

		<guid isPermaLink="false">http://www.antonne.com/?p=425</guid>
		<description><![CDATA[The first hint of higher interest rates in the States arrived after this week&#8217;s FOMC meeting.  Thomas Hoenig (President of the Kansas City Fed) emerged as the first interest rate hawk on the FOMC and voted against an unchanged monetary policy.  Hoenig &#8220;believed that economic and financial conditions had changed sufficiently that the expectation of exceptionally low levels [...]]]></description>
		<wfw:commentRss>http://www.antonne.com/interestrates/hoenig-the-hawk-hoists-the-flag/feed/</wfw:commentRss>
		<slash:comments>2</slash:comments>
		</item>
		<item>
		<title>Intentionally Falling Behind the Curve</title>
		<link>http://www.antonne.com/blog/intentionally-falling-behind-the-curve/</link>
		<comments>http://www.antonne.com/blog/intentionally-falling-behind-the-curve/#comments</comments>
		<pubDate>Fri, 11 Dec 2009 17:34:33 +0000</pubDate>
		<dc:creator>antonne</dc:creator>
				<category><![CDATA[Blog]]></category>
		<category><![CDATA[Interest Rates]]></category>
		<category><![CDATA[behind the curve]]></category>
		<category><![CDATA[boe]]></category>
		<category><![CDATA[Conservatives]]></category>
		<category><![CDATA[curve]]></category>
		<category><![CDATA[employment report]]></category>
		<category><![CDATA[fed]]></category>
		<category><![CDATA[GDP]]></category>
		<category><![CDATA[general election]]></category>
		<category><![CDATA[gilts]]></category>
		<category><![CDATA[Labour]]></category>
		<category><![CDATA[NFP]]></category>
		<category><![CDATA[rate hikes]]></category>
		<category><![CDATA[unemployment]]></category>
		<category><![CDATA[US Dollar]]></category>
		<category><![CDATA[yield curve]]></category>

		<guid isPermaLink="false">http://www.antonne.com/?p=320</guid>
		<description><![CDATA[The Fed and the BoE are going to allow themselves to fall behind the curve as they seek to hold rates low whilst an economic recovery gains traction and begins to absorb some of the spare capacity which has been created by the recent recession (i.e. unemployment falls and manufacturers&#8217; capacity utilisation rises).
We saw the [...]]]></description>
		<wfw:commentRss>http://www.antonne.com/blog/intentionally-falling-behind-the-curve/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>Two Swallows don&#8217;t Make a Summer either.</title>
		<link>http://www.antonne.com/interestrates/two-swallows-dont-make-a-summer-either/</link>
		<comments>http://www.antonne.com/interestrates/two-swallows-dont-make-a-summer-either/#comments</comments>
		<pubDate>Fri, 06 Nov 2009 22:26:30 +0000</pubDate>
		<dc:creator>antonne</dc:creator>
				<category><![CDATA[Interest Rates]]></category>
		<category><![CDATA[Australia]]></category>
		<category><![CDATA[boe]]></category>
		<category><![CDATA[China]]></category>
		<category><![CDATA[commodities]]></category>
		<category><![CDATA[ECB]]></category>
		<category><![CDATA[fed]]></category>
		<category><![CDATA[GDP]]></category>
		<category><![CDATA[goods and services]]></category>
		<category><![CDATA[Ireland]]></category>
		<category><![CDATA[Norway]]></category>
		<category><![CDATA[pound]]></category>
		<category><![CDATA[QE]]></category>
		<category><![CDATA[quantitative easing]]></category>
		<category><![CDATA[rate rise]]></category>
		<category><![CDATA[Spain]]></category>
		<category><![CDATA[sterling]]></category>
		<category><![CDATA[unemployment]]></category>

		<guid isPermaLink="false">http://www.antonne.com/?p=212</guid>
		<description><![CDATA[So two central banks have led the way and raised interest rates (Australia and Norway), starting their journey on the long way back to interest-rate normality.  But it does not necessarily follow that just because two commodity-linked countries have started to hike rates, the Fed, BoE and the ECB are about to follow suit anytime soon. Speculation [...]]]></description>
		<wfw:commentRss>http://www.antonne.com/interestrates/two-swallows-dont-make-a-summer-either/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>Race to the Bottom &#8211; Part III</title>
		<link>http://www.antonne.com/interestrates/race-to-the-bottom-part-iii/</link>
		<comments>http://www.antonne.com/interestrates/race-to-the-bottom-part-iii/#comments</comments>
		<pubDate>Fri, 02 Oct 2009 06:47:59 +0000</pubDate>
		<dc:creator>antonne</dc:creator>
				<category><![CDATA[Currencies]]></category>
		<category><![CDATA[Interest Rates]]></category>
		<category><![CDATA[bank rate]]></category>
		<category><![CDATA[boe]]></category>
		<category><![CDATA[commercial bank reserves]]></category>
		<category><![CDATA[depreciate]]></category>
		<category><![CDATA[ECB]]></category>
		<category><![CDATA[euro]]></category>
		<category><![CDATA[GBP]]></category>
		<category><![CDATA[gilts]]></category>
		<category><![CDATA[Governor]]></category>
		<category><![CDATA[libor]]></category>
		<category><![CDATA[QE]]></category>
		<category><![CDATA[quantitative easing]]></category>
		<category><![CDATA[real assets]]></category>
		<category><![CDATA[sterling]]></category>

		<guid isPermaLink="false">http://www.antonne.com/?p=165</guid>
		<description><![CDATA[The Bank of England continues to do its best to debase Sterling by printing as much money as possible without scaring the gilts market.  The only reason Sterling hasn&#8217;t collapsed against other currencies is that the other major central banks are all involved in various forms of printing money (quantitative easing) themselves.  Sterling is however [...]]]></description>
		<wfw:commentRss>http://www.antonne.com/interestrates/race-to-the-bottom-part-iii/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>General Election Likely to Precede a Base Rate Rise</title>
		<link>http://www.antonne.com/interestrates/general-election-likely-to-precede-a-base-rate-rise/</link>
		<comments>http://www.antonne.com/interestrates/general-election-likely-to-precede-a-base-rate-rise/#comments</comments>
		<pubDate>Fri, 24 Jul 2009 06:54:45 +0000</pubDate>
		<dc:creator>antonne</dc:creator>
				<category><![CDATA[Interest Rates]]></category>
		<category><![CDATA[bank of england]]></category>
		<category><![CDATA[base rate]]></category>
		<category><![CDATA[budget deficit]]></category>
		<category><![CDATA[economic recovery]]></category>
		<category><![CDATA[Gordon Brown]]></category>
		<category><![CDATA[incoming government]]></category>
		<category><![CDATA[inflation]]></category>
		<category><![CDATA[MPC]]></category>
		<category><![CDATA[taxes]]></category>
		<category><![CDATA[unemployment rate]]></category>

		<guid isPermaLink="false">http://www.antonne.com/?p=120</guid>
		<description><![CDATA[The Bank of England is likely to wait until the first Budget after the next General Election (due before June 2010) before seriously contemplating raising the Base Rate from its current level of 0.5%.
There is an outside chance Gordon Brown will call an election this autumn but it is far more likely to take place in May 2010.  [...]]]></description>
		<wfw:commentRss>http://www.antonne.com/interestrates/general-election-likely-to-precede-a-base-rate-rise/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>Gilt Yields &#8211; Supply Concerns or Economic Recovery?</title>
		<link>http://www.antonne.com/interestrates/gilt-yields-supply-concerns-or-economic-recovery/</link>
		<comments>http://www.antonne.com/interestrates/gilt-yields-supply-concerns-or-economic-recovery/#comments</comments>
		<pubDate>Fri, 05 Jun 2009 06:09:14 +0000</pubDate>
		<dc:creator>antonne</dc:creator>
				<category><![CDATA[Interest Rates]]></category>
		<category><![CDATA[bank of england]]></category>
		<category><![CDATA[bond investors]]></category>
		<category><![CDATA[double top]]></category>
		<category><![CDATA[economic recovery]]></category>
		<category><![CDATA[food processors]]></category>
		<category><![CDATA[gilt yields]]></category>
		<category><![CDATA[mining]]></category>
		<category><![CDATA[oil price]]></category>
		<category><![CDATA[pharmaceuticals]]></category>
		<category><![CDATA[retailers]]></category>
		<category><![CDATA[reversal pattern]]></category>
		<category><![CDATA[siv]]></category>
		<category><![CDATA[treasury yields]]></category>
		<category><![CDATA[utilities]]></category>
		<category><![CDATA[yield backup]]></category>

		<guid isPermaLink="false">http://www.antonne.com/?p=108</guid>
		<description><![CDATA[Notwithstanding the Bank of England doing its best to inject £125 bln into the Gilts market, Gilt yields are backing up along with US Treasury yields and those of German Bunds.
There are basically two schools of thought as to why gilt yields are rising.  The more popular at the moment is that government bond investors [...]]]></description>
		<wfw:commentRss>http://www.antonne.com/interestrates/gilt-yields-supply-concerns-or-economic-recovery/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>Race to the Bottom &#8211; Part II</title>
		<link>http://www.antonne.com/interestrates/race-to-the-bottom-part-ii/</link>
		<comments>http://www.antonne.com/interestrates/race-to-the-bottom-part-ii/#comments</comments>
		<pubDate>Fri, 10 Apr 2009 10:03:53 +0000</pubDate>
		<dc:creator>antonne</dc:creator>
				<category><![CDATA[Currencies]]></category>
		<category><![CDATA[Interest Rates]]></category>
		<category><![CDATA[boe]]></category>
		<category><![CDATA[central banks]]></category>
		<category><![CDATA[CHF]]></category>
		<category><![CDATA[currency devaluations]]></category>
		<category><![CDATA[euro]]></category>
		<category><![CDATA[Germany]]></category>
		<category><![CDATA[global recession]]></category>
		<category><![CDATA[government bonds]]></category>
		<category><![CDATA[Japan]]></category>
		<category><![CDATA[nominal gdp]]></category>
		<category><![CDATA[pound note]]></category>
		<category><![CDATA[punch bowl]]></category>
		<category><![CDATA[quantitative easing]]></category>
		<category><![CDATA[real assets]]></category>

		<guid isPermaLink="false">http://www.antonne.com/?p=87</guid>
		<description><![CDATA[A recession can be viewed as too little demand for goods &#38; services (nominal GDP). One way for a country to bring itself out of recession is to depreciate its currency (which effectively moves GDP, via exports, to the country in recession from other countries, boosting the former&#8217;s GDP). However the problem with the current global [...]]]></description>
		<wfw:commentRss>http://www.antonne.com/interestrates/race-to-the-bottom-part-ii/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>Race to the Bottom</title>
		<link>http://www.antonne.com/interestrates/race-to-the-bottom/</link>
		<comments>http://www.antonne.com/interestrates/race-to-the-bottom/#comments</comments>
		<pubDate>Fri, 27 Mar 2009 10:08:32 +0000</pubDate>
		<dc:creator>antonne</dc:creator>
				<category><![CDATA[Currencies]]></category>
		<category><![CDATA[Interest Rates]]></category>
		<category><![CDATA[central banks]]></category>
		<category><![CDATA[CHF]]></category>
		<category><![CDATA[DMO]]></category>
		<category><![CDATA[ECB]]></category>
		<category><![CDATA[euro]]></category>
		<category><![CDATA[fiat currencies]]></category>
		<category><![CDATA[GBP]]></category>
		<category><![CDATA[gilt auction]]></category>
		<category><![CDATA[Gold]]></category>
		<category><![CDATA[Gordon Brown]]></category>
		<category><![CDATA[government bonds]]></category>
		<category><![CDATA[Greece]]></category>
		<category><![CDATA[Ireland]]></category>
		<category><![CDATA[Italy]]></category>
		<category><![CDATA[John Maynard Keynes]]></category>
		<category><![CDATA[Oil]]></category>
		<category><![CDATA[Portugal]]></category>
		<category><![CDATA[real assets]]></category>
		<category><![CDATA[real estate]]></category>
		<category><![CDATA[Spain]]></category>
		<category><![CDATA[USD]]></category>
		<category><![CDATA[Yen]]></category>

		<guid isPermaLink="false">http://www.antonne.com/?p=83</guid>
		<description><![CDATA[All this currency printing (Dollars, Sterling, Yen &#38; Swiss Francs) by central banks as they engage in their various forms of quantitative easing is leading to a depreciation of their currencies against real assets. This is being disguised by talk of currencies engaging in competitive devaluations against one another but eventually it will show up [...]]]></description>
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		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>Are we there yet?</title>
		<link>http://www.antonne.com/interestrates/are-we-there-yet/</link>
		<comments>http://www.antonne.com/interestrates/are-we-there-yet/#comments</comments>
		<pubDate>Fri, 13 Mar 2009 10:03:00 +0000</pubDate>
		<dc:creator>antonne</dc:creator>
				<category><![CDATA[Interest Rates]]></category>
		<category><![CDATA[asset protection scheme]]></category>
		<category><![CDATA[Asset Purchase Facility]]></category>
		<category><![CDATA[bank reserves]]></category>
		<category><![CDATA[boe]]></category>
		<category><![CDATA[capital ratio]]></category>
		<category><![CDATA[DMO]]></category>
		<category><![CDATA[LLOY]]></category>
		<category><![CDATA[magic wand]]></category>
		<category><![CDATA[quantitative easing]]></category>
		<category><![CDATA[reserve accounts]]></category>
		<category><![CDATA[return free risk]]></category>
		<category><![CDATA[tier 1 capital]]></category>
		<category><![CDATA[virtuous circle]]></category>

		<guid isPermaLink="false">http://www.antonne.com/?p=79</guid>
		<description><![CDATA[One deliberate side-effect of the Bank of England&#8217;s quantitative easing program is that their purchases of bonds will be financed by creating central bank reserves.  Literally the UK banks&#8217; combined reserve accounts at the BoE will be credited with £75 bln (created with a wave of the BoE&#8217;s magic wand).  The BoE has decided to go [...]]]></description>
		<wfw:commentRss>http://www.antonne.com/interestrates/are-we-there-yet/feed/</wfw:commentRss>
		<slash:comments>0</slash:comments>
		</item>
		<item>
		<title>Deflation &#8211; Don&#8217;t Bet on It.</title>
		<link>http://www.antonne.com/interestrates/deflation-dont-bet-on-it/</link>
		<comments>http://www.antonne.com/interestrates/deflation-dont-bet-on-it/#comments</comments>
		<pubDate>Fri, 13 Feb 2009 17:04:03 +0000</pubDate>
		<dc:creator>antonne</dc:creator>
				<category><![CDATA[Interest Rates]]></category>
		<category><![CDATA[bear market]]></category>
		<category><![CDATA[ben bernanke]]></category>
		<category><![CDATA[boe]]></category>
		<category><![CDATA[bond yields]]></category>
		<category><![CDATA[corporate debt]]></category>
		<category><![CDATA[deflation]]></category>
		<category><![CDATA[disrepect]]></category>
		<category><![CDATA[employment reports]]></category>
		<category><![CDATA[gold standard]]></category>
		<category><![CDATA[Great Depression]]></category>
		<category><![CDATA[lex column]]></category>
		<category><![CDATA[MPC]]></category>
		<category><![CDATA[printing presses]]></category>
		<category><![CDATA[trading range]]></category>
		<category><![CDATA[Treasuries]]></category>

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		<description><![CDATA[Expecting deflation to take hold is essentially betting against the combined power of the MPC, BoE and Government and the efforts of their counterparts in the US and elsewhere to prevent deflation.  Ultimately they control the printing presses and given that we are not shackled to a Gold Standard (and neither Sterling nor the Dollar are [...]]]></description>
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