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To: BGR who wrote (125328)	9/24/2001 10:12:34 PM
From: LLCF	Read Replies (1) \| Respond to of 436258

<Or is gold always a good buy, even when it is a secular long term down trend of a few decades? > Well, I remember someone pointing out how equities are in a decades long secular bull... so............. DAK

To: BGR who wrote (125328)	9/24/2001 10:40:11 PM
From: yard_man	Read Replies (1) \| Respond to of 436258

:-) Real negative interest rates along with a very rapid rate of expansion in the money supply is inflationary -> by definition. Gold is a good buy not simply for that reason, though it is a good argument. Here is the primary reason that I think gold is a good buy: It is simply a way to "short" the overwhelming and really unfounded bullish confidence in economic policy-makers like the Federal Reserve and Treasury. They have lied and hoodwinked large numbers of people. There are very gross imbalances in the economy as a whole and confidence in these superstars is starting to show some cracks. When it becomes apparent that the business cycle, not only lives, but is going to bite us hard -=- the Fed will continue to do what it does best -- paper over the imbalances. There will be a confidence crisis ... Before you go off and say why hasn't it happened yet, all I can say is it is in process. Don't look to one exogenous event, like this tragedy and discount that it is going to happen.