To: IngotWeTrust who wrote (89999 ) 9/26/2002 6:37:16 AM From: E. Charters Read Replies (1) | Respond to You may have laughed but you were wrong. If you have a capital asset that will hold its value, you don't exchange it for a wasting asset. It is paper that gets eaten away by interest rates not gold -- the contrary view is the fallacy of the pseudo-economist. All gold does is reflect that wasting nature of paper. In theory, if the banks did not suppress gold's price in order to float currencies like the Euro, of loan gold at low rates, then gold would perfectly reflect the increase in the money supply and the eroding power of the dollar and never lose its value. The lack of a good command labour market and the false bull market caused by pseudo growth stocks has disguised the weakening dollar. The dollar is a shell, or Potemkin village. Its facade will be seen when gold is 800 dollars. It will return there. It always has. The only thing that can stop it is governments fixing its price.
