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Politics : Dutch Central Bank Sale Announcement Imminent? -- Ignore unavailable to you. Want to Upgrade?

To: Stephen O who wrote (6396)	6/15/1999 10:25:00 AM
From: Hawkmoon	Respond to of 81193

In an earlier post you said that gold was manipulated to $800. If an ongoing feeding frenzy by ordinary people, aided and abetted by the media to sell newspapers, TV time etc, is manipulation by your definition so be it. Sure it was a feeding frenzy, just like the Internutz and the Bio-techs are/were. The actions by OPEC sent MASSIVE tidal waves throughout the global economy, causing prices to rise significantly in all sectors. That was a man-made event and man-made counter-active measures were understaken by Volker and other CB chairmen to restore price stability, that being their self-stated primary mission. So once the cat was out of the bag with gold, they acted to support it or at least not exarcerbate its precipitous bubble bursting decline, IMO. All in the interest of maintaining a sense of price equilibrium. But now we find the world in the throws of impending recession (despite the signs of hope from Asia), which may become aggravated by the psychological and physical influences of the Y2K event. That was the problem with the sudden gold and silver frenzy of the early '80s. It was a bubble that whipsawed all global currencies. It's sudden and complete collapse back to previous price levels would have resulted in more of the same and that was something the Fed was mandated to prevent. That's why I see the current CB selling of gold as their attempt to prevent a reoccurence of the turmoil of the eighties, especially when the fundamentals don't justify it (ie: very little global inflation or demand exceeding supply causing upward pricing pressures). The only difference would be that if we were pegged to gold right now, the Fed would not have the flexibility with regard to monetary policy to inject liquidity and restore economic confidence and growth. We would quite likely already be in a depression were we under a gold standard (unless we suddenly launched into a major gold exploration and production schedule necessary to meet the need for financial liquidity). Regards, Ron