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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: long-gone who wrote (56703)	7/25/2000 11:10:11 PM
From: Rarebird	Read Replies (2) \| Respond to of 116844

Richard, your missing the whole point of the election here (as usual) from the standpoint of Gold. A Bush win means very hefty tax cuts. Where do you think this additional liquidity will be employed? In Gold? No way. Equities are the major beneficiary of tax cuts. Gold does best in periods of recession, extreme deflation and lack of liquidity. Sure, the tax cuts will be partially offset by spending cuts, which will slow growth initially. But the ultimate resolution of hefty tax cuts are higher equity prices. What you fail to understand is that massive tax cuts are one of the greatest impediments to a higher POG since tax cuts stimulate growth. Gore may have no other choice but to support some tax cuts in order to get elected. But we know where Gore's heart is: tax and spend. You have this irrational hatred toward the Democrats and Clinton, as if they are responsible for the POG declining. The major cause for the decline in the POG began with Reagan's economic policies back in 1980. I think you should think this through more: The POG depends on a whole set of economic conditions which influence exchange rates and the whole supply/demand issue. In many ways, Clinton rode the Reagan Revolution to the Presidency, with the help of an inept George Bush, who always felt deep down that supply side economics was nothing more than "voodo economics." If Bush was smart enough to follow the Reagan Revolution, Clinton never would have had a chance to get elected.