Ron,
Sorry to take so long to reply - but I have been busy.
<<In my estimate, gold rising strongly would initially hurt the
Dollar, making it weaker vis-a-vis the Yen & Euro.>>
My point exactly. If a price rise in gold was going to be viewed as that deleterious to the world economy, then in fact the economy must be in a real mess otherwise it could withstand that increase. And it would follow then, that there is a real strong motive on the part of the global spin masters to keep it down .... kind of like curing the infection by removing the fever - while the infectious agent remains.
Presently there is a very strong demand for gold - and logically the price should be starting to recover - lease rates seem to be. Why has it not? - because there is central bank and producer forward selling activities, and rumours of same.
The reason the CBs are doing it, is to continue the charade (all is coming up roses) as long as they can. Producers are doing it to try and stay alive.
<<Gold is officially on the Treasury's books at $42/ounce. That
should frighten you even more.>>
This is nothing new, reserves have always been discounted at way below the going rate by most countries.
Fianlly, gold has brought integrity to economies for centuries. It seems to me that you want to get rid of gold - and then all of the economic problems will be solved - IMO that is nonsense. By your own admission, there has not been a gold standard for years (and of course that is correct) ... so gold should (now) have no real affect on the economy. That being said, there are a lot of people that still view gold as the ultimate indicator of economic health and as the life preserver of last resort (irrespective of there being no "official" gold standard) - and that is at the heart of gold's present demise and the reason for it being presently manipulated.
All IMHO, of course.
Regards,
MB |
