To: d:oug who wrote (3899 ) 11/15/1999 7:38:00 AM From: Phil Jones Read Replies (3) | Respond to
Doug, the US dollar and European euro haven't collapsed and won't collapse (unlike what Mr. Hinkel predicts) for a very elementary reason. That reason is simply that it's not in anyone's interest for the major world currencies to deflate. Sure, they're run on fiat, and the pieces of paper have no "real" value per se, but what they represent is "an understanding" between all the World's big players that "You rub my back and I'll rub yours"! A collapse of the U.S. dollar and European euro would create massive uncertainty for huge numbers of Working Joes and Working Janes, and that's in no one's interests -- except for a few players in gold stocks such as us. The situation is different from the Roman Empire or Post-WWI-Germany in that those entities could not control the whole picture, i.e. others were in competition with them in the market. Now, for the first time, the powers that control the World say that paper currency is okay -- and they'll do whatever they have to do to keep it that way. So there's no point in these articles that say that gold will be king again. There's no way. Those days are gone. Communications between countries is too fast, and more efficient in regard translation. The travel between countries is fast. Leaders of the major countries are on the same wavelength. ... And there's no major power that wants to topple the U.S. for the first time. Europe is happy to see the U.S. with lots of global power. This is the first time in history that we have come into such an all-encompassing World stability, and it spells the end of economic uncertainty which was always gold's trump card. Phil
