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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: Jim Willie CB who wrote (25707)	11/26/2002 12:51:17 AM
From: LLCF	Respond to of 74559

Here's a ditty on the rally in gold and Homestake during the last depression courtesy of Fed Gov. Ben S. Bernanke and CB: <<Although a policy of intervening to affect the exchange value of the dollar is nowhere on the horizon today, it's worth noting that there have been times when exchange rate policy has been an effective weapon against deflation. A striking example from U.S. history is Franklin Roosevelt's 40 percent devaluation of the dollar against gold in 1933-34, enforced by a program of gold purchases and domestic money creation. The devaluation and the rapid increase in money supply it permitted ended the U.S. deflation remarkably quickly. >> Of course the fed has stated many times overtly that they will liquify as needed, and in a round about way that they would do just about anything to make it work. So I agree with your overall opinion on gold if the economy worsens. DAK