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To: long-gone who wrote (57246)	8/13/2000 12:02:47 PM
From: Rarebird	Read Replies (2) \| Respond to of 116995

I think it is healthy and moral for CB's and politicians to support a pro growth economic policy with a minimal amount of inflation. That is clearly what benefits the vast majority of investors and what is most beneficial to the global economy. Gold is a great trade on the long side when these politicians (including Greenspan) screw up and err. Yes, they do screw up and err at times and that is why many still hold gold as a reserve asset in their country's portfolio. Lately, many CB's(and individual investors) have gotten extremely cocky and complacent and they think Greenspan and Company can continually manipulate the economic cycle on the side of growth. Excessive Manipulation in any direction contains the seeds of its own destruction. Manipulation is not in itself illegal, Richard, but a beautiful feature of creative human existence.

To: long-gone who wrote (57246)	8/13/2000 1:22:00 PM
From: Hawkmoon	Read Replies (2) \| Respond to of 116995

So sorry to see a "moderate Republican" has helped enrich so many of them so greatly by forwarding the gold sale discussion while they were & while they were short gold prior to the bulk of the American people..... It's truly sad that you don't realize how much of a guarantor of US sovereignty it is that we rely on economic policy decisions over the availability of a precious metal. When currencies are tied to one standard that is of limited availability, it reduces our sovereignty. It does this by limiting our ability to finance further growth because greater demand on a limited supply creates inflation. So no matter how productive we might be, or how demographic trends require us to increase the availability of money (baby boomers..etc), the scarcity of gold prevents this. And for some nations, discovering a large quantity of gold is little different than Jed Clampett discovering Texas Tea. They move to Beverly Hills, buy themselves mansions with "cement ponds", and base their entire economic system upon that commodity. Pretty damn inefficient, and certainly very arbitrary. But being on a fiat standard, the strength of our currency depends primarily upon the economic decisions we make and the nature of our fiscal policy. It helps to prevents abuses by pork-barrel politicians, or at least provides immediate feedback in the global currency markets. The strength of our currency is the greatest preservative of national sovereignty since its strength is a reflection of OUR INDIVIDUAL STRENGTH, and the global markets willingness to entrust their money to OUR MARKETS. Why the gold bugs haven't been able to see this completely confounds me. Gold is a global standard, originally used because of the inefficiencies in valuing the currencies of individual nations. In contrast, nations are pegging their currencies to the dollar, and by default, our economic and political system. To diverge from pursuing similar economic/fiscal policies as it's patron currency, would be tantamount to fiscal suicide. Now what I would concede is that a strong dollar threatens other nation's sovereignty in that it forces them to adopt US style policies (or the strongest currency). However, since I still believe the world will one day resemble the American style of democracy and economic freedom, I have little problem with coercing them financially to adopt our fiscal policies. After all, if they come up with a better system, the financial markets will reward them and we will be forced to adopt them as well in order to stay competitive. After all, it is a global marketplace of ideas with winner take all, where even the losers find themselves living a better way of life. Gold is nothing more than a slavemaster that subverts individual freedoms and national sovereignty. Something you should reflect upon Richard. Regards, Ron