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Strategies & Market Trends : Booms, Busts, and Recoveries

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To: TobagoJack who wrote (18221)4/17/2002 9:18:04 AM
From: Jim Willie CB  Read Replies (1) of 74559
 
German talk of selling gold is hilarious, transparent, empty

the real reason is that they undermined their DMark currency
adoption of East German, with Poland, Czech houseguests
since 1990, the Bund has followed the USA in a fiat currency printing parade that would make Johann Gutenberg proud

their commitment is to paper assets -- stocks, bonds, currency
its depth of commitment is Faustian

their marriage with the Euro will help stabilize
but the European continent's commitment to Paper Assets is total
their economy is fully dependent upon their debt system
their Euro is not quite the heavily laden debt-denominated instrument called the USDollar, but close

during this decade the tide turns to commodities
the Bund is as scared shitless as the Fed and GreenMan
the Dept of Inflation (Federal Reserve) and the Secretary of Inflation (GreenBackPrinter) are in a panic

few recognize their panic or identify their moves as panic-stricken
while few have noticed, GOLD was the best performing "CURRENCY" in 2001
and so far in 2002 it is continuing the new trend
GOLD is outperforming every single currency on earth now
it is frightening the Central Bankers
when supply continues unabated and relentlessly, value declines versus stable assets

30% increase in US money supply since Jan2001
the world is awash with USdollars
35% of the US federal debt is held abroad
3% of the US GDP is in trade debt

plenty for Fed and Bund to worry about
their bark is louder than their bite

my main hope is they continue their insane gold and silver leasing system
because overriding supply/demand/pricing laws with a regulated system will result in worldwide depletion of aboveground silver
guaranteed

inelastic demand: pay any price for necessary silver
inelastic supply: low supplies dont drive up price

/ jim willie (silver back gorilla)
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