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To: Glenn D. Rudolph who wrote (139210)2/12/2002 8:21:42 PM
From: GST  Read Replies (1) of 164684
 
"US Dollar is the world's reserve commodity" Well this takes us someplace we might not want to go in this conversation. There is an issue about what something is "worth". Supply and demand are the two key pricing components. The supply of dollars can be increased by the US Federal reserve. This tends to make it worth less. Of course worth less in relation to what? The answer looks like 'less in relation to gold'. Does that mean that gold will once again play the dominant role in central banking? I never said a word on that score. But it might mean that when the printing presses of the world's central banks a working overtime, the appetite for something that holds its value will grow stronger.
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