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To: Rarebird who wrote (51811)	4/21/2000 12:01:00 PM
From: Ahda	Respond to of 116764

It is is not need for gold it is intelligence within the economic structure which i am fully beginning to question. Gold helped non wise look wise curtailed power and held man at bay thereby increased stability. Increasing rates will increase stress on the lower end of the scale. For a short time the rate increases will add inflationary pressure as all try to defuse the inevitable by increasing prices to counteract. This causes rates to rise yet more. At some point rates slow corporate growth and increase unemployment simultaneously, there of speculation is reduced. Most cycles have naturally smoothed themselves out because it is an internal state. This particular period we are very externally connected re imports. What will be the end result depends on mans greed. All i can see is all roads lead to energy at this point. Simply put this is period in history where we have the cart before the horse. In order to create the growth projected you have three alternatives one is a population explosion where all are born with silver spoons. Second is shatter what was for zero affect or third find a new planet to sell wares too, all are highly unlikely. Completley unrealistic evaluations is what i am stating a product of paper and mans ingenuity of being a God. With railways the tracks were laid first the explosion was gradual, this is akin to atomic which we survived and my very simplified summary of what appears to be happening now.

To: Rarebird who wrote (51811)	4/21/2000 12:18:00 PM
From: IngotWeTrust	Read Replies (1) \| Respond to of 116764

My dear rarebird, I would agree that gold is a prisoner allright, but NOT JUST to a strong dollar, because it was a prisoner during periods of a "weak dollar" as well... Are you REEEEEALLY trying to tell this thread that gold has had only a STRONG dollar to contend with during the last 19 years, when 1) that hasn't always been the policy of the G-7 administrations in charge of the majority of the industrial world economies, (including our own politico in power du jour, and 2) the current mobilization of CB gold is for the purpose of increasing national foreign reserves and thereby allowing currency derivs and profiteering in other forms, and not just say UK CB's putting their gold leasings to work in the US $ market, but also in pound/yen and pound/DM crosses for example? I look forward to your particular twist on this particular corner conundrum you've painted yourself into... Regards

To: Rarebird who wrote (51811)	4/21/2000 4:13:00 PM
From: Crimson Ghost	Read Replies (1) \| Respond to of 116764

Rarebird A lower dollar is important. But my take is that the chief negative for POG is the huge supply of cheap leased gold available from the CBs -- mainly the allegedly "pro-gold" European CBs. When the shorts can borrow gold at less than 1% and invest the proceeds in riskless T-bills yielding 6%, gold will have a very hard time rallying. The returns to the CBs from these gold loans are so low that there has got to be a hidden agenda here. Not only that, but these gold loans greatly depress the price the European CBs will receive for the gold they want to sell. If the CBs were to simply cut the amount of gold available for lease enough to hike lease rates to 3% instead of the current average of around 1%, POG probably would jump 30-40 bucks even if the greenback remained strong. But the bullion banks would scream bloody murder. And keeping these fat cats growing ever fatter seems to be a key objective of those calling the shots at the CBs.