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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?

To: stockman_scott who wrote (52444)	5/31/2002 11:51:41 AM
From: Jim Willie CB	Read Replies (2) \| Respond to of 65232

Kudlow harbors pristine views on gold, with some errors first: Essentially, the gold spike points to a big Fed policy change: the basic money supply, or monetary base, controlled by the central bank has stopped shrinking and has resumed a more normal rate of increase. This is welcome news. since Jan2001, MZM has risen 35% (stopped shrinking for 17 months, hardly normal rate now) he overlooked totally the USDollar decline and its large negative implications he buys into the mainstream notions of price deflation and gold downtrend, and into other notions of reflation without cost to the debased currency no mention of the widening trade debt from overvalued dollar no mention of the zero real rates prevailing since Oct-01 no mention of the overdone mining hedges being unwound and some real irony: "But there's much more to the gold spike than that. 'Gold and only gold is real money'* said banker J.P. Morgan early in the last century. He was right then and he is still right today."* John Pierpont Morgan would turn over in his grave to see the failed Gold Cartel consequences, the historic gold short squeeze that will likely lead to the bankruptcy of his fine mismanaged company, wow!!! Sir Lawrence is in for an education, I expect he does comprehend gold's value to ward off both inflation and deflation that is a rare awareness / jim