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Politics : Dutch Central Bank Sale Announcement Imminent?
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To: IngotWeTrust who wrote (93)6/10/1998 9:24:00 PM
From: Bill Murphy  Read Replies (2) of 81137
 
O/49er,
Very insightful stuff you recited there. You certainly have a very good handle on economics and world affairs, not that you need me to tell you that.
I see it this way. Rubin has had his way so far, but now, as you have observed, the game is changing. China gave warning today about a devaluation if the present Yen course continues. A China move to downgrade its currency could set off another big round of runs on Asian currencies, market tanks, and chaos of all sorts,including political instability. High tech tanko is now a fact of life. The worse Asia gets, the worse high tech and other U.S. industries will perform. The screaming must be loud and clear to Rubin. As Greenspan said today, it is his call.
So what now? A coordinated intervention, and I mean three hits within 24 hours around the globe by the G-7 could stuff it to the specs ( nobody is long yen ). and stop a local panic and call off the Chinese. This would thwart the deflationists ( at least for the time being ) and stop a melt down panic in many stock markets. Rubin now has to look over both shoulders. He cannot afford to play his game much longer - or all hell is going to break loose.
The way I see it, this is good for gold. Dynamics of the gold world will finally have changed. The restrictive central bankers will have to retreat somewhat. Gold is not going down now very much on obvious negatives to the max. What will it do if the almighty dollar is jolted and there is less supply ( central bank sales dwindling ) at the same time?
I suggest a big move up is in the works.
Bill
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