SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Politics : Stockman Scott's Political Debate Porch

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: stockman_scott who wrote (3363)7/28/2002 1:24:16 AM
From: Jim Willie CB  Read Replies (1) of 89467
 
if DeptTrez assumes full risk of JPM derivatives, then....

derivative blowups will now put the brunt of market effects squarely upon the Treasury credit securities
so with blowups within the weak dollar environment, we could see the beginning of a selloff of USTBonds

who the hell would want to hold those highly stable, highly trustworthy bonds when they become linked to derivative event dominos from US stock bubble collapse ???

so they want gold kept down while the system hobbles along?
marvelous

they keep assuming they can control GOLD
that is where they are wrong
this is a world market
their WagTheDog distractions will raise the price of gold
derivative accidents will raise the price of gold
banking systemic shocks will raise the price of gold
stock market declines will raise the price of gold
terrorist attacks will raise the price of gold
outright assault on Iraq will raise the price of gold
disrupted MidEast shipping lanes will raise the price of gold

only extreme illiquidity drains and deflationary forces can hold gold down
sooner or later, the world will figure out that gold is a tremendously effective deflation hedge
whether they realize it or not, gold has outperformed all paper financial asset groups since last autumn
also, see Japan for deflation hedge power in gold

/ jim
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext