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

To: brian krause who wrote (83959)	3/29/2002 9:44:17 PM
From: long-gone	Read Replies (3) \| Respond to of 116972

<<But Bundesbank's gold sale won't happen will it.>> Even if it does(and the German people support it) they will still follow the Washington accord limit on how much how fast. Exploration is slowing and production - at some point - must follow. Demand has no such limit.

To: brian krause who wrote (83959)	3/29/2002 11:38:44 PM
From: IngotWeTrust	Respond to of 116972

Why are you still posting to me?

To: brian krause who wrote (83959)	3/30/2002 12:22:39 AM
From: E. Charters	Read Replies (3) \| Respond to of 116972

These countries who want to divorce gold for a new standard of value for the currency of the land have are the naive new-agers of economics. They bow in type to Professor Keynes and the barbarous relic thinkers. All well and good. Keynes in many ways was an astute thinker. It is wrong to say that his principles support liberal misspending by governments or government waste or money printing by spend-greedy politicians. It is a misinterpretation of Keynes that governments do great amounts of deficit spending when the money is rolling in. What the countries divesting gold are doing is wasting an asset from their central banks which really they have no business devaluating. Governments are not in the oil business, or gold business. But they have inserted themselves there from socialist greed. It is a kind of communistic zeal that behooves them to dishonour gold. It is their drive to get a hold of the money printing press to build their castles in spain and become jet age silicon economies that we see in these gold divestitures. They view industry and commerce as a wasteful, dirty, antedeluvian activity. I will bet that no modern politician has ever built his own house with his own hands. In fact I doubt that any of them has ever built anything of value. The securities the Bundesbanke president was talking about that he wanted to acquire were Eurobonds. Printed by banks. Paper promises instead of a commodity. There is nothing wrong with a government hoarding a bit of a commodity. It may be iron, or salt or platinum, or any of the 90 elements or combinations therof of value. Hydrogen gas would do. Salt would be OK. But they hold gold because of its permanence. It was ancients man's thoughtful notice of its durability and wonderful characteristics that made him adhere to using it for purposes of coinage and jewelry. It is far from a barbarous aspect of his early culture but a symbol of his developing civilization and intellect that he went to an arbiter of wealth such as gold. Gold is 75% in private hands. But do private interests establish the price of gold? far less than they have established the rights of man, their own rights it seems. People are lazy and cowardly in this. No one wants to stick their neck out of their pocketbook and say they don't want the paper of their spendthrift governments. We have seen their promises go wrong before. All nations saw paper degrade in the past. It always does. But government roll the old stuff in and new stuff out. They like that cow of paper cash. Really the Fed and other institutions like it are way out of their depth. In reality they are just following the cycles that they created by "printing" too much money. Let's face facts. Business is bad. Computer analysts with 20 years experience, who in 1998 were turning down work, cannot find jobs. 100 top Nasdaq companies admitted to the SEC that their Enron-like declaration of profits of 19 billion last year were in fact an 82 billion dollar loss. Most base metal mining companies are down in the dumps. But the sector as driven by gold and diamonds as it is in Canada in the juniors, is recovering a tad since the blues of 1997. I believe the economy is in a downturn. A serious one. I have said since 1999 that we are in a depression, not just a recession. It is a standard paper-fueled depression. It was fueled by the ballooning of the M1 and the paper craze of the tech stocks. It is so classic it is silly. Its similarities to the actual curve of 1929 to 1932 is chilling. Greenspan can do nothing about it. When the bottom falls out of the Nasdaq, finally when profits are declared semi-truthfully this summer, the economy will start to do some serious stagnation. Next is serious devaluation. EC<:-}