Who the heck is the " WE" in the " We Know" statment above.
You mean they haven't told you yet?? Oopppss!!!
"We" in that statement are myself and others who have followed and "gameplayed" Y2K as an economic event for sometime. Obviously some gold bugs are living in a bubble out here mulling over the depreciating value of their metal networth.
"We" are people like Ed Yardeni, Economist/DMG, (http://www.yardeni.com), and Tony Keyes, y2ktoday.com, and individuals from the WashDCY2K workgroup who have been investigating the issue.
"We" are everyone who bothered to read the article in the WSJ several months ago where it was stated that the total hard currency reserves in circulation and storage, equate to $500 Billion, to include the $50 billion the Fed is printing this year.
"We" are the people who have taken the time to ask various people we meet, when we discuss Y2K, how much cash they plan on having on hand over Y2K. (Average I've seen is $10,000)
"We" are the people who realize that well over 100 million people/family units utilize the US dollar as currency. Should each of those 100 million people/units withdraw a mere $5,000 each, they will drain the Fed of its hard currency reserves. (100 million x 5,000 = $500 Billion).
"We" are the people who read that certain county gov'ts are planning on having a week's wages in cash stored with their banks in case they have to pay local gov't employees in cash due to disruptions. And this fact will only aggravate the shortage of currency.
"We" are the people who are beginning to wonder if the Fed might want people to use gold as a storehouse of value in order to take the pressure off the hard currency supply.
Why do you ask??
<VBG>
Regards,
Ron
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