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Gold/Mining/Energy : Gold Price Monitor

GDXJ 97.67

+5.0%

Nov 10 4:00 PM EST

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To: Alex who wrote (43286)	10/18/1999 12:45:00 PM
From: Alex	Read Replies (1) of 116753

Mundell on fiat currencies.............. <<National price levels of every country became unstable after 1970. This is true even for the price levels of the few currencies that have appreciated against the dollar since 1971. The most rapid inflations, as a purchasing-power-parity theorist would say, are in the countries with the most depreciating currency. The country with the lowest inflation is the country whose currency has appreciated the most. But even in Germany and Japan, whose currencies have appreciated strongly against the dollar, the price levels have increased by 240% and 290% respectively between 1971 and 1976. Prior to 1971, the international monetary system, anchored to the dollar which was in turn anchored to gold, kept world inflation in check. After 1971, when the Golden Anchor was lifted, inflation control had to depend on the slender reed of Federal Reserve discipline. The result was pandemic inflation that has all the characteristics of becoming a permanent feature that future generations will have to cope with. >>

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