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Politics : Dutch Central Bank Sale Announcement Imminent?
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To: philv who wrote (22690)3/18/2005 3:20:14 PM
From: sea_urchin  Read Replies (1) of 81023
 
Phil > In 2004, the global economy grew at the fastest rate in 30 years. Money creation by the Bank of Japan on an unprecedented scale was perhaps the most important factor responsible for that growth.

I can agree with that.

> And from the first article, it is clear that the US will be demanding ever more credit.

I'm sure that's true

> The party just goes on and on and the booze, thanks to the kindness of foreigners, just keeps flowing. Life is good!

I don't agree with this. Because the party keeps going on, life isn't necessarily good. I prefer the analogy of a juggler who has to keep throwing the plates to prevent them falling. He is virtually compelled by the situation to continue it. If he stops, the consequences are too awful to contemplate. He could even lose his career and his livlihood. Likewise, if they stop creating the debt (printing the money), the world economy comes to a halt. Furthermore, since the US owes its very existence to the creation of debt, it, surely, will be the biggest casualty if the debt creation stops. The US can't guarantee or maintain the value of the dollar but it can and will keep up the flow.

And you, as a gold investor/speculator should be very happy about that. While the flow of paper dollars continues and their value falls, it is virtually guaranteed that the price of gold will keep rising (in USD).
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