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To: Zardoz who wrote (42615)	10/10/1999 3:54:00 PM
From: Tunica Albuginea	Read Replies (1) \| Respond to of 116764

Hutch a rise in POG can be predicted if there is a rise in inflation caused by excessive Government spending to pay for HealthCare ( borrowing in the free market to pay for it, thus competing with private market borrowing ). (also if there is a rise in entitlement spending. In fact 60% of Guv. spending goes to entitlements ). Why is this so hard to understand? One of the main reasons markets tanked in 1978 is because Medicare was growing at 10%/ year and TBonds were at 12% to pay for it. Guv printing presses were on at 100%. HMOs were supposed to stop that 10%/year increase. And they did , for a while. Now the system is coming apart and 10% year Medicare increases are back on the agenda as well as Guv printing money to pay for it,( unless they cut spending ). The reason Gold is up is because there is nowhere in sight any spending-cuts planned. Governmant printing money== higher POG : get it? TA Message #42615 from Hutch at Oct 10 1999 3:26PM CAN WE ALL STOP TALKING ABOUT INDIVIDUAL COMPANIES AND STAY WITHIN THE SPIRIT OF THIS THREAD? You're a fine one to make that comment. After all you be floggin' Health Care {HMO's} lawsuit info for the last week. Hutch

To: Zardoz who wrote (42615)	10/10/1999 5:11:00 PM
From: teevee	Read Replies (1) \| Respond to of 116764

Hutch, Could it be that the very same 15 European banks that announced they are curtailing gold sales also have been the largest gold leasers to mining companies and hedge funds:-)) These same banks will probably sell to the hedge funds and mining companies the gold they need to buy to repay their gold loans. It appears to be a zero sum game, other than lease fees-the hedge funds have to buy to get back onside margin requirements and the mining companies have to buy because they can't produce fast enough to cover by delivering. The central and commercial banks end up doing a whole lot better that just earning the lease rate on the gold they lent to hedge funds and mining companies who forward sold:-))So how long do you think it will take before the market is overbought before the downward trend is resumed(probably hard to judge when the central and commercial bank gold supply is elastic/managed/rigged in order to maintain confidence in "coin of the realm" eh:-))? It appears that central and commercial banks do make a return on their gold bullion over and above lease rates, and regardless of which direction the price moves, afterall:-)) regards, teevee