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Politics : Stockman Scott's Political Debate Porch -- Ignore unavailable to you. Want to Upgrade?

To: lurqer who wrote (18766)	5/3/2003 12:58:28 AM
From: lurqer	Respond to of 89467

Pulley Message 18908998 lurqer

To: lurqer who wrote (18766)	5/3/2003 3:24:28 AM
From: Jim Willie CB	Read Replies (2) \| Respond to of 89467

nice article on gold from Wallenwein I like this guy, solid arguments, no junk gold-eagle.com a clip: The euro, on the other hand, has a "positive" relationship to gold. The European Central Bank, and all the euro member's central banks, value their gold reserves quarterly at actual market prices. That means, as the price of gold goes up, the value of their currency goes up as well, and by signing the "Washington Accord" in 1999 they have announced to the world that the dollar's gold-suppression jig is up. The dollar is still hamstrung by being tied to an artificial, government-decreed, quasi-official price of gold at the whopping rate of $42.222 per ounce. [See Title 31, United States Code, Section 5117(b).] Obviously, with the market price of gold currently above $330, that "official price" has nothing to do with the realities of the gold market. It is actually a remnant of the gold standard days when every dollar was immediately convertible into gold on demand, at a stated rate. Being thus tied down, the US government and banking elite can never afford to let the price of gold float freely according to actual market forces (yes, that old, worn-out "demand and supply" thingy. Gets you all the time!) This little difference in the valuation of gold makes the euro the undisputed, hands-down future winner of the euro vs dollar conflict. Well, not really the future winner anymore. The euro has already delivered its knock-out punch. What you are witnessing is the agonizingly slow fall of the US dollar giant to the floor of the boxing ring. It's just too early for the count. Without going into the intricate details of the relationship, the euro's guaranteed future success can best be explained this way: free market forces can never be violated with impunity for a very long time. They always reassert themselves - sooner or later. The euro was constructed to take advantage of free market forces - especially the free market of gold. The dollar is anchored in a useless, repressive scheme that cannot allow market forces to prevail vis-a-vis gold. Ergo, the dollar is doomed.