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To: GST who wrote (64537)6/24/1999 11:23:00 PM
From: BGR  Read Replies (1) | Respond to of 164684
 
GST,

1) Why not? Remember the irrational exuberance skit? :-)

2) The US has been issuing warnings about the trade deficit with Japan (which will be solved by the weak dollar) for how long now? A decade? More? With all due respect, you underestimate the power balance here IMO.

3) Gold is a religious issue almost at this point. Yes it has a huge short interest but there is more combined pending sales from the EU national banks as well as BOE. As for the IMF, those sales were planned several months out anyway. More importantly, the US has to be the only country in the developed world now which has an outside chance of securing inflation. In deflationary times gold does badly.

-BGR.