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To: SouthFloridaGuy who wrote (184083)	7/28/2002 12:36:31 PM
From: Box-By-The-Riviera™	Read Replies (1) \| Respond to of 436258

ironically you are fighting the fed they want inflation more than sex right now this party ain't resolved yet as "over"

To: SouthFloridaGuy who wrote (184083)	7/28/2002 12:44:27 PM
From: portage	Read Replies (1) \| Respond to of 436258

SirRealist, the NYCBoy case is a reason often given (all asset classes fall in a deflation). The hardcore goldbugs on the other hand, from what I read, admit that could happen first, then as gold becomes a desired form of currency again when people begin to question or lose faith in fiat money, gold flies. We'll see, I suppose.

To: SouthFloridaGuy who wrote (184083)	7/28/2002 12:53:44 PM
From: David Zgodzinski	Read Replies (1) \| Respond to of 436258

there's one big hole in Prechter's argument about gold. Assuming he's right about the path of the economy - unlike the Japanese, i don't think the US voter has the patience for much deflation. Patron has been musing about that. I think they will quickly vote in politicians who preach juicing the economy with everything they've got - lower taxes, lower interest rates, much more government spending. Attacks on Iraq. You name it. Those same politicians will say "who cares if the dollar goes down - it's good for American business" As Win-Lose-Draw has pointed out the worst inflation occurs in economies that are sinking, not those that are growing fast, precisely because the governments print print print to throw money at the mob. widespread bankruptcies of the kind that would arise with Dow below 1000 would lead to the US dollar being worth a tiny fraction of what it is today. Gold will not drop anywhere near as much (if at all) hence gold will be worth much more in terms of the dollar.