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Gold/Mining/Energy : Gold Price Monitor

GDXJ 92.99

+2.9%

Nov 7 4:00 PM EST

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To: ahhaha who wrote (70095)	5/23/2001 11:14:16 PM
From: E. Charters	Read Replies (2) of 116753

Threre is nothing unusual about the deflation we were in. It is called deflationary growth. It is amply charted and noted for the past several hundred years. It always follow stagflation and precedes depression and the following inflationalry growth. They are the four parts of the paper money-interest rate ecomomies. Silver and gold economies do not suffer these same cycles becasue they trade value for value as all paper money transactions ultimately do. All money trade is basically delayed barter. Can nations trade that way i.e use paper moneyt? Well they do but they go back to balance of trade for assuredness that there is no net outflow ! Why is that? To prove Value for Value isn't it? So do they trust paper? Well I guess not! If they have to balance commodity outflow for commodity inflow and not just trade cash for goods its apparent that they cannot and do not trust olther's paper or their own! I am not saying that supply-demand runs cannot happen in commditty indexed ecomomies - or crashes, but hyperinflation does not happen as often and longer periods of stability exist. We cannot merely look at ancient economies and say their cycles were different because we gots so many transistors and thing is different these days wtih air travel. That is hogwash. Communications and technology do not change the basis or time domain of an economic cycle. They have not changed since Adam ate the apple. So barring crop failures and dutch tulip crazes, ancient gold and silver economies provided for the people and created fabulous wealth. Size or amount of wealth or pace of life does not change the economic cycle. Ubiquitous instant gov't controls do not change it. Old time communications were adequate to control things in those days and did not slow the yearly cycle. What governs it is supplied credit and productivity. If you see a society that had gold-silver and existed for 500 years without a major depression and a stable economy and then it went to paper money and its economy went to boom bust in 70 year cycles what conclusion would you draw? That the previous gold silver economy was bad and archaic and impoverished its citizens? That boom-bust was superior? Of course! If it reinforces your prejudices, always draw the contrary conclusion to common sense. P.S. The country was China. But it could also be France or England. EC<:-}

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