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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Henry Volquardsen who wrote (68412)	10/1/1999 12:29:00 AM
From: Merritt	Read Replies (1) \| Respond to of 132070

Henry: Perception, Perception, Perception. I perceive that our sense of what happened in the 60's and 70's isn't really all that much different...it may appear that it's more than it is because I used a reverse chronology in listing the links of the chain of events. Can't help that, backwardness seems to come all too easily to me.<g> But in the 70's, gold's intrinsic value probably wasn't any greater at $800oz than it was at $150oz. What had changed was people's perception. I don't see any reason why that can't happen again. The average J6P has probably never heard of Forex, and could probably care less about the natural corrections that occur in a free floating currency market - except for how he's affected by that "correction." When he sees the buying power of his paycheck dwindle, he knows something's wrong - and the built-in reaction is to get tangible assets, gold being the usual asset of choice. It doesn't matter what the economists say...if enough people have the perception that they better put some money into gold, then the POG will go up, and they'll laugh at the economists, because they'll have been "proven" wrong...again. I've been wondering about this recent announcement by the EEC's CBers. Wondering if they were trying to strengthen people's perception about the strength of the euro, and to what purpose. It was probably done to strenghten the IMF, but... Last year I wrote a note to MB about how if I were a fundamentalist moslem who wished to strike a blow at "The Great Satan," I'd demand that my oil royalties be paid in a currency other than dollars. Euros seemed as though they'd be the logical choice...if the euro demonstrated that it would be viable. So, I guess that thought is still rattling around in my head, and appears to have found it's way to this keyboard. Hopefully you will disabuse me of that notion before I start seeing helicopters following me.<g>