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To: patron_anejo_por_favor who wrote (48869)	8/2/2002 10:15:23 PM
From: Joan Osland Graffius	Read Replies (2) \| Respond to of 209892

patron, Under the only conditions I see people in the US keeping cash during a 0 interest environment is if we are having deflation. If we assume declining purchasing power with the dollar for US citizens I suspect they will try to find assets that will give them some return on their investment or at minimum keep the purchasing power of their capital stable. This brings me to thinking of commodities of some kind. Why would not gold, silver, palladium, platinum and rhodium be an alternative to the US dollar? Joan

To: patron_anejo_por_favor who wrote (48869)	8/3/2002 1:57:45 PM
From: chris714	Read Replies (2) \| Respond to of 209892

Patron....if rates in the U.S. do go that low, it would seem that we would probably be in a deflationary environment. If the U.S. is experiencing deflation...then we would export that deflation overseas including Europe Wouldn't this hurt BEGBX, TGG, FAX etc...? I am afraid that this scenario may come true. My dilemma is how to invest on the way there....and how to invest once we reach that point. I am currently positioned with Vanguard GNMA's 40% Gold/Silver 16% TGG / FAX 11% NAT 7% Index Shorts 5% making up the bulk of my PF Do you have an opinion regarding this allocation? What are your thoughts regarding BEGBX vs. TGG? Thanks Chris