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To: Rarebird who wrote (38575)	8/7/1999 10:01:00 PM
From: Hawkmoon	Respond to of 116764

They don't want it anymore. The US needs their weakness in order to prosper. How do you figure?? Just analyze that statement on your part again, Rarebird.. The US needs weakness in other economies in order to prosper. The only reason we're currently in this mess to begin with is that these economies are so weak and screwed up, AND HEAVILY IN DEBT. We need these nations TO BE STRONG so that we can trade with them and not run trade deficits. We need their financial systems to be healthy so they can borrow money and be able to pay it back without the gov't having to monetize the debt. WHY IS IT THAT YOU CONTINUE TO EMPHASIZE US INDEBTEDNESS AND NOT FOREIGN DEBT??? They have more of it per capita and as a percentage of their GDP than the US has. Why do you ignore this?? If you won't answer this, then don't bother responding to me. It will be a waste of time for both of us. The stock market has just become the savings plan of choice for Americans, rightly or wrongly. That translates into THEIR EARNINGS have been going into mutual funds and not bonds. Those earnings will likely continue to a certain degree, no matter whether the stock market suffers a 30% decline or not. Investors will simply put their money into bonds, regular and INFLATION ADJUSTED BONDS.... Inflation indexed bonds essentially removed any reason to be in gold, except for the more DIRE crises of confidence. Mind you... there is a role for physical gold in case the rule of law and society breaks down (but bullets will probably be worth more) or HYPERINFLATION in the US economy. But run of the mill inflation or a percentage or two, or three will see inflation indexed bonds meet the need. Regards, Ron