To: Crimson Ghost who wrote (39401 ) 8/22/1999 12:32:00 PM From: Rarebird Read Replies (2) | Respond to
George, Greenspan said that if the gold price rose enough to threaten the economy he would intervene to encourage leasing. What he meant was that if the price went above $1000 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.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 were borrowing gold to begin with is that you were able to get a 2% interest rate instead of, say, 7% from a bank. If
