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Politics : Dutch Central Bank Sale Announcement Imminent? -- Ignore unavailable to you. Want to Upgrade?

To: long-gone who wrote (8148)	10/9/1999 8:45:00 PM
From: m.philli	Read Replies (1) \| Respond to of 81100

i think it bodes well for future demand. One thing I learned, I had no idea that part of the Tiananmen Square demonstration was due to "inflation". The Central Bank of China knows from historical record up to and including 93/94, that an increase in inflation will cause a corresponding increase in gold demand by the population. Not a rush to bonds or foreign paper money (historically don't trust paper money). One would wonder if Gold could and would be used as a tool for controlling money supply and hence inflation. If the Bank accumulated (at historically low prices) gold reserves in exchange for $1 reserves, they could then, when the inflation dragon awakes, feed the same gold to the public in exchange for currency in a controlled value for each. As the currency supply shrunk, the economy would slow and the inflation dragon withdraw to sleep in his cave.As peoples fear abates they might sell their gold (which the government could buy back at a reduced value)to obtain currency for consumer goods as they become less expensive.? make any sense to factor gold into the Central Bank of China's monetary tools???-mike