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

To: d:oug who wrote (66858)	4/1/2001 8:37:38 PM
From: d:oug	Respond to of 116764

like prescribing more alcohol to the alcoholic and more cocaine to the addict sennholz.com Home \| Current Writing \| Books and Booklets in Print \| Essays and Articles in Print \| Seminars \| Resumé \| Ways to reach Dr. Sennholz Quote of the Week The Week of April 1, 2001 - Minimum Wages: "Few economic laws, if any, are more malicious and malignant than minimum wage laws..... The Week of March 25, 2001 - Federal Reserve Policies: "The feverish pitch of the Fed money pump..... Unfortunately, the binge is making matters worse..... ... must end in a spectacular crash and devastating depression. ... the evils of recession cannot be averted by the very policy that breeds recessions. To prescribe more pumping action is like prescribing more alcohol to the alcoholic and more cocaine to the addict. It may temporarily alleviate the withdrawal pain, but makes matters worse in the end..... ... it cannot avoid the depression in the end." The Week of March 18, 2001 - Booms and Busts: "Booms and depressions do not lie in the nature of the market system; they are imposed by governments and central banks expanding or contracting the stock of money and credit... is the root cause of instability. It is a disruptive and inflationary element in the private property order; it actively nourishes the transfer ideology and promotes the political command system." The Week of March 11, 2001 - Fringe Benefits: "Many politicians and officials are ever anxious to..... ... every new levy raises the cost of labor and causes some unemployment."

To: d:oug who wrote (66858)	4/5/2001 4:59:04 AM
From: goldsheet	Read Replies (1) \| Respond to of 116764

I read the entire Sennholz essay at his site: sennholz.com Lots of good stuff in addition to a few paragraphs on gold. He correctly states what bullion banks have done: "borrowed large quantities of gold from various central banks at rates of one percent or less, then sold it for U.S. dollars and invested the proceeds in U.S. Treasuries at 6 percent or higher." And states the obvious risk - "Such transactions obviously are very profitable but rather risky and potentially ruinous if the price of gold should soar beyond the level at which it was sold, or the gold loan rate should rise and the Treasury rates should fall" I can easily agree with both of the above statements (neither of which are pro-gata or anti-gata). The article does not indicate the actions of the bullion banks are either good or bad, but just points out the inherent risks of such transactions. P.S. Sorry I did not reply sooner, I was busy manipulating my website <grin>