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

To: Ahda who wrote (83519)	3/20/2002 11:16:02 AM
From: Richnorth	Read Replies (1) \| Respond to of 116759

As we all know by now, the inflation thing is all rigged: component factors considered in calculating the inflation index are such that they are practically constant regardless of whatever the inflation should be. By the way, Don Stott wrote in part, with regard to the coming bailout:- .......The presses will roll, and their gross mistakes will be covered. We will then get "used" to the dollar possibly becoming worth half of what it is now. After WWI, the dollar was worth 50% less than before, and the same with WWII. I was "used" to 25 cent a gallon gas when I was a kid, and $9.95, 600:16 tires for my car. Now, I am "used" to $125 tires for my car and $1.25 a gallon gas. I was "used" to nickel cokes, and $75 a month apartments, and now am "used" to today's prices in fiat dollars for everything. I will never get "used' to Chinese merchandise as sold in China Marts, and everywhere else, but that's another subject. When the bail-out happens, not only will prices escalate in dollars, but it is possible that the Euro will make a huge headway in becoming the world trade vehicle. It is possible that the dollar, having lost its purchasing power, due to hyper-inflation, will be a laughing stock. Or perhaps all the currencies will go down together, and we will all get "used" to $10 cokes, $15 a gallon gas, and million dollar, three bedroom development homes. We may get "used" to $5,000 a week salaries, and a $20 an hour minimum wage. Everything will "go up," when the presses roll to bail out the dozens of fools, at Citibank, Morgan/Chase, and others, who caused this. As if the bail won't be bad enough, we still send hundreds of millions overseas weekly through the Ex-Im bank, IMF, World Bank, grants, subsidies to our enemies, and other methods of screwing the taxpayer through inflating the currency.............

To: Ahda who wrote (83519)	3/22/2002 9:49:28 AM
From: Zardoz	Respond to of 116759

USA has been for a long time decieving themseves about inflation. True inflation rate in the USA is around 6% or higher. To many people are following the CPI, which is an INDEX and not inflation. Monetary inflation is the KEY to the US economy and thus the markets. The markets are truly in worse state today then 2 weeks after the Attacks. The FACT that Greenspan has screwed up yet again might suggest to all that he has been manipulating with the economical data to the point that what appears as inflation such as commodity prices or consumables is NOT what is reflective in non consumables. The mis-belief that one commodity does lead to a stablization of value is a Misnomer. This is one reason why the ratio between gold and silver is NEVER steady. Yet buying power is a function of inflation and real estate prices reflect uniquely the cost of purchases. BUT one also needs to consider the correlation between home cost rises and inflation. And to due that you'd need to factor into the purchase price of homes the cost of borrowing. And these two variables are inversly related. And I also CAN'T say if they are well correlated. So a 21% increase in property value may only lead to an 9% realized inflation rate considering the cost of borrowing has fallen from 9% to 6%. So why is Gold range bound? Well many here look at Enron and say they are massively short gold. Yet we know people such as Warren Buffet bought Silver up to $7 range in the past. Does being long a commodity such as silver make for a good hedge, and being short being a bad hedge.. NO. Maybe Enron was long gold? Noone I know of has correctly stated with 100% certaincy wether Enron was long or short, or for that matter whether Enron was even strongly into Gold. So without an impetuses on the Gold price one must assume that they are at BEST neutral. Giving that exclamation then one can only assume that the true valuation of GOLD is based on something beyond the spot price, and thus in my opinion based on previous data trends from before I assume that the POG is fully valued and lacks any compelling reason to rise. Thus it's near a max valuation. And since $255 area was a low, then I can only state that with $305.x already in that we are in a range... How's that?