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

To: long-gone who wrote (85504)	5/19/2002 7:51:10 AM
From: E. Charters	Read Replies (1) \| Respond to of 116836

We have been through a bout of inflation that exceeds anything in since 1810 to 1845 years. From 1987 to 2001 inflation is 61.75%. But even that ancient period was marked by periods of deflation. For some reason this correcting cycle of falling prices has been eliminated from the modern lexicon. This is ominous that it may be catastrophic someday. The uninterrupted cycle of low level but inexorable inflation from 1966 to today, accompanied with the largest scale immigration since 1810, is only partly true growth due to population pressure. (The period from 1970 to today is the era of largest scale immigration since 1810.) Contrary to what people beleive, 1930 to 1950 was the lowest US level of immigration. Comparative inflation did not accompany the rise of the industrial age and the increase of the US population by ten times between 1810 and 1890. (This leads to the conclusion that the Civil war was in part caused by population pressure and economic disparities.) Where this has to lead is to deflation and price/wage collapse. Greenspan is pointing to credit collapse it would seem, as have others. Message 17475182 Where will gold go? Well if you look at 1932-1933, BEFORE the BRETTON WOODS price fix to 35 dollars, the price of gold ROSE during this depression. The facts are there. Gold was 20.67 in 1929 and 32.32 in 1933. As a matter of fact it rose to 35.00 before Roosevelt fixed it at that price. Why did it rise? Because gold buys dollars. It has more buying power than paper, despite paper's buying power increasing as paper becomes more scarce. Gold therefore is not a pure commodity. If gold is exchanged for value, as it no doubt will be for some time to come, then commodities will chase gold, like they chased gold and paper in the hungry 30's. The scarcity was value of exchange, not paper per se. There were a lot of things out of whack during the depression vis a vis gold. Oil fell but gold rose. The stock market rose and so did gold. There are no golden rules here. But hidden in the matrix of all these changes is a key to the future. EC<:-}