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Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?

To: Zeev Hed who wrote (98771)	9/23/2002 2:52:20 PM
From: Jim Willie CB	Respond to of 99280

ever heard of the Gold Cover Clause ??? dollars in circulation need not be backed 100% by gold the gold cover clause is still on the books but now it has been sterilized, with a 0% rate a "re-instatement" to 3% or 5% would have a significant effect not only on the dollar, but also on the gold price I expect the USdollar to be backed on demand by a 3% cover rate in the next few years, after the dollar crisis, the early stages of which are on record the current dollar is backed only by $6,000,000,000,000 in debt amidst a very serious debt collapse, liquidity crunch I believe the bond rally has about 4-10 weeks remaining then comes a mysterious reversal in interest rates despite a weakening economic climate NO, BECAUSE OF A WEAKENING CLIMATE IN FACE OF CONTINUED FOREIGN FINANCING NEEDS if the dollar is backed with a 3% cover, then $10,000 cash can demand $300 in gold, such as a 1-oz coin you may be bored of the subject, but the topic will rage white hot when the dollar experiences its continued problems e.g. Fed deficits over $400B annually (not the stated deficit, but rather the real combined public and govt debt) e.g. US Balance of Payment deficit over $500B annually (which is past the 5% of GDP critical level) you steadily make pronouncements about gold its dynamics are not as simple as you make them to be the fundamentals behind the dollar are eroding just because Central Banks dishonor gold, doesnt mean it has lost its appeal as currency since summer2001, the dollar has peaked and begun to fall since summer2001, gold has bottomed and begun to rise that is not the behavior of a "barbarous relic", but rather an alternative currency gold is not the only commodity with dire short futures position i.e. estimated at $30 Billion (4 yrs production) (in fact, the short position now is larger than the combined Central Bank gold holdings) crude oil is also with dire short futures position approx $600 Billion this is the motivation behind the Islamic Dinar gold coin Arab warfare is about to take on a new twist settlement of trade balances with Dinar, not dollars Iran already announced transition to Euros your refusal to deepen your knowledge of the gold sector has kept you out of the sharpest rising investment area since summer 2001 good luck to you I would cite my sources, but my length is probably already challenging your attention span / jim p.s. gold is now showing an ultra-bullish "catapult" pattern