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To: TobagoJack who wrote (964)	11/26/2000 10:49:02 AM
From: Box-By-The-Riviera™	Respond to of 74559

interesting article found by Les Horowitz on another thread..... smh.com.au Jay...... in regard to gold.... aren't we on the verge of rapid deflation starting with the markets and ending in the implosion of real estate assets.....as the whole ball of wax reverts to a longer term mean number....in which case..... an over correction or a prolonged sideways bear would be the path..... so..... gold right? oil will potentially lose it's day in the sun sooner than later if the demand side implodes too..... J

To: TobagoJack who wrote (964)	11/26/2000 10:52:13 AM
From: Box-By-The-Riviera™	Respond to of 74559

interesting article found by Les Horowitz on another thread..... smh.com.au Jay...... in regard to gold.... aren't we on the verge of rapid deflation starting with the markets and ending in the implosion of real estate assets.....as the whole ball of wax reverts to a longer term mean number....in which case..... an over correction or a prolonged sideways bear would be the path..... write downs leading to write downs.... (see Japan starting another wave of such.....particularly in the construction sector...the long ignored festering sore.... and potentially equivalent to upping the jobless number in Japan by six million...though even 1 million would have a tremendous effect) so..... gold right? oil will potentially lose it's day in the sun sooner than later if the demand side implodes too..... J

To: TobagoJack who wrote (964)	11/26/2000 11:02:40 AM
From: Box-By-The-Riviera™	Read Replies (1) \| Respond to of 74559

follow up.... on gold....so deflation is detrimental to gold? first from this article: suntimes.com The growing consensus is that the economy cries out for new capital formation, and that requires help on both monetary and fiscal fronts. In monetary policy, an interest rate cut is needed from the Fed. In fiscal policy, the relatively small tax cut package containing important pension reforms is needed from Congress beginning Dec. 5 rather than waiting for the uncertainty of the 2001 session. Few dare utter the word, but the economy's worsening problem is deflation. In late 1996, supply-side advocate Jude Wanniski wrote his then friend Greenspan to congratulate him on his marriage and to wryly express the hope that the falling price of gold signaling a coming deflation would not spoil his honeymoon. The current deflationary gold price is $265 an ounce, representing a $35 drop since Jan. 1, 2000. That promises to be more dangerous for the country than threats by future Fed governors to the chairman's domination or a phantom oil inflation.