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Politics : Stockman Scott's Political Debate Porch

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To: 4figureau who wrote (4889)8/20/2002 12:45:25 PM
From: Jim Willie CB  Read Replies (1) of 89467
 
thanks for RRussell, always worth reading, some comments

he assumes that deflation pressures would push gold down
sounds like a 1970's conditioned response
not so sure about that
gold rose 60% during the Great Depression

the negative correlation between gold and dollar is strong
as is the negative correlation between gold and stocks
if deflation strikes, then dollar and stocks will decline
and gold will get hurt from illiquidity forces

somewhat alarming to hear of cash withdrawal limits imposed
I expect bank runs
no IF's, AND's, or BUT's
runs and mild panic when a couple large banks go bankrupt
there will be far too many in trouble, to bail them all out
/ jim
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