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To: Hawkmoon who wrote (36279)	7/1/1999 11:27:00 PM
From: Enigma	Respond to of 116759

<<I mean really..... where did you learn your basic macro-economics?>> Ron you live in an Alice Through The Looking Glass world - assuming your figure of 8,000 tons of gold is correct, or is this just the US figure (I thought the total CB figure is 35,000 tons) - you would have the Cbs unload this gold onto the market - REALLY drive down the price and buy each other currencies? Billions if not trillions of dollars of value would be lost. Or are you arguing that the value of the currencies purchased would be pumped up by the purchases from the gold sales. The POG has fallen approximately 10% since the announcement of the B of E sales - supposedly the proceeds of the sales will go mainly towards the purchase of Euros and Yen - will the value of the Euros and Yen jump 10% instantly? No. So something has been lost - to the British Treasury. As someone pointed out in the parliamentary debate the (paper) loss so far is approx 400 million pounds - more than the cost to the taxpayer of the Kosovo disaster. d

To: Hawkmoon who wrote (36279)	7/2/1999 1:14:00 AM
From: Claude Cormier	Read Replies (2) \| Respond to of 116759

<< They want to sell gold simply because it is a dead reserve to them, unable to be sold like their currency reserves are. It's dead money for them just like the 8,000 tonnes of gold we have is a dead asset>> For now the facts do not support this statement. The net official sales are have been below 2% of total gold held by central banks in recent years. The annual average for the past 30 years is much less 1%. This is no demonetization. The recent decisions by the ECB as well as the declartions by Japan, China and India is a proof that gold is still a reserve currency. I will tell you that there are also two new developments that will use gold as a new reserve currency. You will hear about them in the next 6-12 months. And these new applications will have nothing to do with central banks.