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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: Gabe Heti who wrote (92141)	12/24/2002 8:56:24 AM
From: Gabe Heti	Respond to of 116764

Sinclair states that the growing US trade deficit is putting pressure on the dollar and increasing the value of gold will somehow reverse the fall of the dollar. Sinclair says that devaluing the dollar and allowing gold to rise is the answer to both eliminating the deficit and maintaining the value of the dollar relative to other currencies. Howerever, it seems to me that the deficit has to be reversed first, only then can the US allow gold convertibility to take place even if the price of gold is allowed to increase ten-fold. Reducing the the trade deficit really requires the devaluation of the dollar relative to other CURRENCIES which is in effect a lowering of the standard of living in the US or it calls for a sharp increase in US productivity relative to its trading partners. The first is not politically palatable and the second not easily accomplished. So I agree that gold will rise relative to the dollar, but the fall in the dollar relative to the price of gold and the Euro and perhaps the Yen will be precipitous and permanent.