One of my best friends is French --Alain.
I admire their flair for style and good taste, not to mention that their food --and wines-- are without doubt, the best.
I spent some time in Europe. My first Christmas over there, (around 3 weeks), I spent it in Toulouse, at Alain's home....
During those 3 weeks, I ate the best food I have ever eaten, and drank copious quantities of great wine, both the better Bordeaux, plus the vin ordinaire of the region... not to mention a great time shared with a French family... (even they agreed with me that the Parisien were a little.... well, maybe your mother is from Paris so never mind). <g>
Like the Argentineans, they believe there are only two kind of people, in the world: The French (or the Argentineans, in their case), and then the rest of the world....
But that is a generalization, and I meant my comment as a joke...
As for Gold....
I believe the Chinese, and Orientals in general, have the same "love for the metal", and it has been one of the arguments that the Gold peddlers [and bugs] have used to sell their wares....
The bottom line in this issue of the value of Gold boils down to:
1. Capital markets have access to different markets and instruments at the stroke of a computer key. Therefore, investment alternatives and hedges are many and well varied. --No need for the "safety of Gold"
2. Central Banks have amassed millions of dollars in gold that are literary, unproductive. Not only that but in addition, it costs tremendously to warehouse it and guard it.... Selling it, can also assist many governments that may be strapped or heavily in debt. They can invest the proceeds in far more productive and to the chagrin of many.... as safe as gold....i.e. US Treasuries... that pays interest, to boot !
3. Gold has a false image, (in today's world) of "storage of value", which is now finally dying.... because today's world can not be compared with previous periods in history where the image of gold, in practical terms, was a store of value.... but not any more.
4. This technology revolution, if we are to believe in it, is the equivalent of the gold anti-christ.... because it is based on emphasizing productivity, the human aspect, better standards of living for the entire world. Therefore, your store of value are your productive assets, highways, plant, equipment, technology bio-engineering, robotics... etc, etc, etc,
NOT an obnoxious amount of yellow metal, guarded by the Bozos of Congress, which does diddly squat for anybody.
Fiscal discipline is achieved by knowledge and information, not based on how many bars of gold [supposedly] "backs up" your paper currency, corrupted and irresponsible politicians will destroy said discipline, not selling the bars of gold that all they do is collect dust in a dark vault.
Gold is the store of value of the middle ages. Like religion, in order to have a following [and worship], needs mysticism and fear that allow the uninformed to use as shelter, when the evils of __________________(fill in the blank) will make you run for cover, (or the powers that be, want you to think so).
All that, as rational thinking individuals consider, is moonshine.
Jesse Helms and his [republican] cowboys in Congress are completely disconnected to what the hell is going on in the world of technology.... They think that hoarding gold, praying to _______(fill in the blank), regulating morality, and putting a barbed wire fence around the US, (a la Buchanan), will bring back the golden years of the 1950's and 60's...
Even if they block such sales, the rest of the world will continue to sell.... there seems to be not much demand, (from investors), and I do not foresee this to change. (otherwise the price would not be where it is).
US Politicians still have not figured out that the rest of the world has awakened, have learned industrial processes, and are less and less willing to sell raw materials as such, they want to sell manufactured products as well.
I mean... how many people in the US know where Toulouse is ? or, say Tucumán ?
Luckily for the US, the best technology is in the US, and in spite of the Hens that cry that the great Depression is just around the corner, because stocks are overvalued, and the rest of the world is going to eat the US alive, in one gulp....
I believe the reality is different.
For starters, ALL of Latin America view the US and the Dollar, as a great heaven of safety. I understand that Asia has the same view.
The Europeans are saddled with bureaucracies and welfare that will not allow them to be as competitive as American businesses.
The real evil are politicians like Helms, republicans or democrats that are radicals.... those are the real dangerous creatures....
As for the markets, yes, there will be ups and down, but the fundamental trend, favors the bulls big time. My real worry is when Alan Greenspan, (a former disciple of Ayn Rand), retires...
I just hope that when that happens the radicals in Congress have already been removed, both Republicans and Democrats.
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must go now.... |
