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

To: E. Charters who wrote (69216)	5/15/2001 6:29:38 PM
From: Zardoz	Read Replies (2) \| Respond to of 117113

So why is this gold not tradeable for stuff? You also don't need 100% convertibility. Even 12 to one is alright. How about 5%, maybe 2.5% where do you want ME to draw the line so that you can be happy. And if 1/12 why not zero. The efficient market hypothesis suggests that given a fair market, the rates between currencies will balance to offset advantages in other countries. Therefore the best solution is for NO currency to have a backing in gold. Once again, you talk currency and not money: Currency in circulation needed at most is perhaps one 100th of GDP. (Everything else is cheques, drafts and deposit entries.) That is 180 billion. Backed by 12 to one gold that is 15 billion. What is hard about that? Of course 18 trillion in GDP could not be equaled to gold in existence which at 300 bucks/oz is worth 2 trillion dollars. You need to monetarized all the money to effectively hedge against currency outflows.{Otherwise you set yourself up as a hedge inflection point} What if everyone wants the GOLD and not the currency? The logic is that any backing of currency with gold is destined to fail. This is why the Japanese instituted the holding of US Bonds. The derivative holdings act to ensure that they can control the YEN and Dollar via action at a distance. Their holdings are small, as is Canada's. The recent drop of the Canadian Dollar against the US has served the Canadian economy well. Sure you want a holiday in USA you pay. Yet relative to the remaining world the effect is mooted. People will always say you are selling you industries, companies, real estates to the foreigners.... yet the same was said in '80's when the Japanese where buying New York. Now where are they? Hutch Without currencies allowed to float based on economics, you are destined to repeat the Swiss world. I do not want Swiss Francs... give me 2 pounds of gold dust, and I'll accept it after the Assayer values it and processes it. With me you pay the price... fully!