SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Pastimes : The Naked Truth - Big Kahuna a Myth
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: BGR who wrote (70906)10/21/1999 5:03:00 PM
From: pater tenebrarum  Read Replies (2) of 86076
 
BGR, note that i am not a 'gold bug'. i turned bullish on gold because i saw convincing reasons to believe that it's bear market was coming to an end.
you can argue all you want, the current account and the Fed's printathon are not good for the dollar.
the trend in the trade weighted dollar index has clearly turned down...what's there to argue about?
it doesn't really matter where other currencies were in relation to the dollar in the early '90's or even a few moths ago. what counts is the current trend. if one were to look at past performance as a yardstick, the dollar is basically collapsing against the European and Japanese currencies since the end of WW2...why, as recently as 1985 the dollar was twice as high versus the D-Mark than it is now.

so basically it has just resumed it's long term downtrend...and the reason is the exploding current account deficit coupled with the increasing unwillingness of foreign funds to finance it. not to mention the dollar oversupply induced by the never tiring printing presses of the Fed.

re: gold standard, AG himself has correctly remarked that the gold standard had the big advantage of keeping the urge to print in check...he wrote an essay to that effect which i'll post to you if i can find the link. the same essay also points to the mistakes made by the Fed in the 1920's...you could substitute 1990's for 1920's in the essay and wouldn't even notice it...

hb
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News