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To: BirdDog who wrote (48712)	3/15/2002 3:30:48 PM
From: Jim Willie CB	Respond to of 65232

on Russia and gold dumping potential I gots several thoughts gold is perhaps the most manipulatable metal in the world why is that? because 98% of the gold mined since Ceasar remains in vaults because it is never consumed, only lost e.g. bottom of the sea, Spanish galleons, thrown out with grampa's junk because industrial uses have been displaced by platinum because govts are arrogant enough to think their promissory word has greater inherent value than gold back home in govt vaults utterly amazing, such arrogance for me, I dont for one minute trust the govt they are a monster unchecked, suseptible to all human weaknesses e.g. greed, sloth, lust back to Russia they might earn some browny points with US Federal Reserve and European central bankers (Bundesbank, BofEngland) by cooperating with gold dumping, esp since the US and Europe has largely done about as much as they could or should Europeans in autumn99 announced no further dumping it is commonly called the Manhattan Accord in early March, BofEngland sold 20 tons of gold they announced that might be their last so now Euro/US powers might be pushing more more production it is all a battle of supply & demand with the SAfrican Rand destroyed, plenty of cheaply produced gold is flowing by ApartheidLand Russia cut back in both oil production and gold mining since 1990 a whole new ballgame once capitalism took root Russia's natural resources are utterly awesome the big question in my mind is whether Russia will buy political capital with gold sales, or hold it knowing that the trend is toward greater value later however, Russia is strapped financially now Putin has made great progress in ending kleptocracy practices a simple tax code is in place, one that should be the envy of US Govt the battle for oil production and quotas has begun with Russia and Saudis it could extend to Russia competing for gold sales with South Africa, Mexico, Canada, and Australia one thing I have come recently to learn is that if Russia is needed by the West to greatly increase gold shipments with increased production, then they might be vulnerable to further currency devaluations why? better to have their gold production costs drop (in $terms), than their gold sales price potential rise the name of the game for West central banks is to keep the gold price down gee whizz, if I can only destroy my medical thermometer, I will never show a fever again it would have been beneficial to have an effective thermometer working in the end of the 1990's decade central bankers have a huge vested interest in eliminating the gold thermometer personally, I think they will earn a "blowback effect" just like in political puppet regimes the blowback is coming in the next 18 months, I am convinced they have effectively shut down half of mining operations but silver will be their Achilles Heel by driving the price of gold and silver too low, they have created an imbalance that cannot last for long the low prices have brought down production supply that dont matter so much for gold as silver as long as the USTBond is regarded as ultimate reserve, gold may not matter so much with the TBond yield hovering around 5%, and the USdollar at super levels now, I cannot see the Bond-Dollar duo holding the world fort for long regardless of Russia or SAfrica / jim