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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: Hawkmoon who wrote (37060)	7/12/1999 8:46:00 PM
From: d:oug	Read Replies (2) \| Respond to of 116774

Ron, I'll let Rarebird reply to the comment you made to his post, but I have a question about his post and your reply to it. Presently those voices in my head are not loud, but there are many, and I have read Rarebird's post and your reply 3 times and can not understand Rarebird's point and your points. As a suggestion that will help me and make sure the both of you are on the same page, could you please reply again to Rarebird, unless he already responded to you, and spell out what you think he is saying and why you agree or disagree or a combo. As for: <<How often is the threat actually carried out in its severe form if the child disobeys? Seldom. >> It constantly amazes me when a parent has to explain to the courts, or explain to family, why a son or daughter did not follow the rules set down by the parents, as in drug use or injury in car accident. No accountability from a follow thru results in no respect for the rules or the issuer. Now I'll do you reply to my post. Doug

To: Hawkmoon who wrote (37060)	7/12/1999 11:27:00 PM
From: Rarebird	Read Replies (1) \| Respond to of 116774

Gold As Currency: It seems that the Gold Bears are most threatened by ( and take quite seriously ) the MONETARY VALUE of Gold. This is why many Perma Bears openly talk about demonetarizing Gold. It is impossible and they know it but they've managed to convince many Gold Bugs, who have capitulated. Greenspam said that if the POG rose enough to threaten the economy he would intervene to encourage more leasing. What he meant was that if the POG went above $1,000 per ounce and it was causing foreign governments to shun the U.S. Dollar, thus causing it to plunge to multi-year lows, then he would act. This has nothing to do with the current situation, which is just the reverse. Most certainly the paybacks from central bank leasing will eventually be greater than new central bank leasing, which will put upward rather downward pressure on the gold market. Remember that all these loans must be paid back eventually in GOLD. Once the price rises there will be a sharp drop in new leasing, since the risk in a gold loan is having to repay in a higher price. The only reason people are borrowing gold to begin with is that you can get a 2% interest rate instead of, say, 7% from a bank. If gold rises more than 5% than this differential makes gold less favorable to borrow than fiat money. What most Gold Bugs don't understand is that Gold leasing pays homage to the great Value of GOLD AS CURRENCY. The " next cycle " is not Bullish; it is Bearish. As a final comment, notice how popular the yen carry trade was before it abruptly ended. Far more than the Gold Carry Trade.