Strictly: Drilling and oil-field services Message Board

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Gold/Mining/Energy : Strictly: Drilling and oil-field services

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To: Crimson Ghost who wrote (77674)	11/1/2000 10:43:45 AM
From: SliderOnTheBlack	of 95453

US Dollar - catch 22 and gold has a "win-win" straddle here... George C - great article on the "Dollar" This pretty much drives home the "Catch-22" nature of where Rubin & Greenspan backed us into: <<...With the dollar already towering head and shoulders above its foreign counterparts, a full blown currency problem (or simultaneous multiplicity of problems) in the near future that forced the dollar higher would go a long way toward basically cinching a broad based corporate profits recession in the US. >> 1. If the US Dollar moves any higher - not only will US Corporate profits continue to fall to recessionary levels (they allready are) - but; the stress fractures all ready seen in other Global Currencies & Economies "will" erupt into another "crisis event" that will rock the markets. <<What is probably the single greatest and most important difference between now and the currency crisis periods of Asia, Latin America and Russia over the last three years is the emerging negative effect on corporate profits. >> Gold wins on any Global currency, or economic "event" and per that great "Rogue Wave" article - that's all Gold needs for the Derivative crisis to erupt. 2. If the US Dollar falls/corrects - Gold fundamentally wins and that win accelerates upon the backs of the repatriation of funds from the US Equity,Bond & Debt Markets that will surely arrive with a correcting dollar. Imho; this Catch-22 "straddle" that Gold in essence has here on the US Dollars moves; just reinforces this as a significant entry point & the compelling historic valuations make the XAU/Golds a portfolio weighting bet here and into any & all further weakness if seen. We shall see ~

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