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Gold/Mining/Energy : Gold Price Monitor
GDXJ 101.44+3.5%Nov 12 4:00 PM EST
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To: Bobby Yellin who wrote (43607)10/22/1999 8:46:00 PM
From: Hawkmoon  Read Replies (4) of 116756
 
I guess you refuse to think of gold as insurance for loss of faith in fiat money...

Interesting perspective Bobby. Exactly how is confidence in the Dollar "enhanced" by holding gold in a monopolized status?

Were the CBs to completely dump their gold holdings upon the market, you'd see an INCREDIBLE SPIKE in the value of the dollar.

So what we have right now is a situation where the POG only reflects what the CB's or buillion manipulators CHOOSE IT TO REPRESENT.

The Euro banks obviously were concerned about the dollars growing strength against the Euro currency. They were probably concerned also about the amount of counter-party risk they had outstanding with the bullion borrowers. They were also worried about the trade deficit numbers in the US.

All of these issues were partially dealt with by unleashing gold against the dollar.

But I hardly expect that, once unleashed, the powers that be who control the POG will be too willing to see the US economy completely disrupted by psychologically undermining the dollar through artificial mechanisms that suggest inflationary pressures.

Confidence in ANY MONETARY SYSTEM is only as sound as the legal mechanisms that are in place to insure that debts are repaid and the banks operate on a sound liquidity basis.

Regards,

Ron

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