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Gold/Mining/Energy : Gold Price Monitor

GDXJ 98.59

-2.8%

Nov 13 4:00 PM EST

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To: lorne who wrote (66919)	4/3/2001 11:07:16 AM
From: Rarebird	Read Replies (1) of 116762

Lorne, since the global stock markets peaked, about $US 10 TRILLION worth of global wealth (expressed as valuations of shares) has been written down. That is equivalent to the entire annual U.S. Gross National Product (GDP). What has NOT been written down are the debts. From this point on, three different main issues will mutually affect all the world's economies. The first issue is national credit worthiness. Wealth has fallen but debts have not. The result has been a dive in the value of collateral. Debts are now more risky and, over time, higher interest rates ought to be the result. If interest rates DON'T rise, the second issue will be falling currencies. The third issue is the future of the international value of the U.S. DOLLAR. The U.S. Dollar cannot CRASH without taking the entire global currency system down with it. Gold will be the major beneficiary of that. Japan holds $US 363 Billion, mostly in U.S. Treasury debt, though a very small part is held in the form of U.S. Federal Reserve notes (cash) - also a U.S. debt. Japan is in the super desperado stage. After Japan is finished selling its US equity holdings, it will sell its US Treasury debt. As this all plays out, the eventual big time winner is Gold. Got Gold? Got Guns? Got Glory?

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