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To: d:oug who wrote (54066)	6/12/2000 5:56:00 AM
From: d:oug	Read Replies (1) \| Respond to of 116820

From: LePatron@LeMetropoleCafe.com To: dougak10 Reginald H. Howe has served commentary at The Kiki Table entitled, "Central Banks vs. Gold: Winning Battles but Losing the War?" This is another VERY important piece by Reg. The implications of his analysis, which are backed up by numbers and logic, are staggering..... They ... support the claims of the Gold Anti-Trust Action Committee that the gold market is manipulated..... I will comment on what Reg has..... The gold cabal is going to.... The gold cabal is trying to..... I URGE all Caf‚ members [ and GATA supporters] to email this report to a potential gold investor and to the press..... When others realize that..... Le Metropole Cafe All the best, Bill Murphy Le Patron www.LeMetropoleCafe.com

To: d:oug who wrote (54066)	6/12/2000 9:13:00 AM
From: Hawkmoon	Respond to of 116820

Dougie, So you're claiming that you share the view espoused in the Golden Sextant essay that dollars could/should be sold and converted to gold. That would be nothing more than a manipulation of currency, something that would not deal with the underlying weakness of the current European economic structure. And it could backfire on the Euro as weakening the dollar makes their exported goods more expensive on the American market and will stunt their economic recovery and slow their economic growth. Such a slowing of economic growth in Europe would likely push the Euro even lower and threaten the stability of the EMU. Investors would ask themselves "why should I hold Euros when I can hold gold, a substance that I know is being bought with discarded US dollars?". Such a plan is not a panacea. It is not a cure for Europe's structurally deficit economy and weakening the dollar, with the result of depressing consumer purchases of foreign goods, would be self-destructive. And why your windshield analogy proved itself inadequate has to do with comparing its static framework with a system that, by its very nature, must be able to expand and contract, according to the pressures of the environment it exists in. Gold is a financial framework that is inflexible when properly adherred to. The quantity of money can only increase when the amount of physical gold increases through new discovery and exploitation. It would require that gold be valued at vast premium to current global GDP, and a vast quantity of the metal maintained in the hands of central bankers, who would release or rescind gold reserves as required by the money supply requirements of the economy. An inflexible monetary system, that ignores the needs of economic growth, is not what the global economy needs. What it DOES NEED is a more effective means of coordinating global money supply, and allocation thereof, as well as preventing individual central banks from using manipulative tools to attack or defend each other's currencies. If they would, instead, reform their economic policies, it would go far to providing a far sounder foundation for their currencies. Just because Fiat money is not backed by gold does not mean it is worthless. Fiat money is, by its very nature, representative of the economic policies that are followed by its policy makers, both politicians and Central Bankers. A gold standard, not vigorously adhered to, would only be one more manipulation aimed at trying to have their "cake and eat it too". And we know the gold standard has ALWAYS been ignored when it was considered politically convenient and its usefulness discarded by the realities of modern economics and social stability. Regards, Ron