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Politics : Dutch Central Bank Sale Announcement Imminent? -- Ignore unavailable to you. Want to Upgrade?

To: Jamey who wrote (18504)	6/4/2003 10:36:26 PM
From: sea_urchin	Read Replies (1) \| Respond to of 82344

James > Europe will sell their USD for Euros It's suicide for them if they do. > the trade deficit will loom larger Sure, but that's what is supposed to happen. The bigger the deficit, the bigger the debt and thus the more the printing. > jobs will continue to move overseas Sure, it's happening all the time. > we will live to see a depression like the 30s. I don't believe so. The massive creation of money without an increase in assets to match is, in effect, a devaluation of the currency. Thus, costs rise all the time and we are all getting poorer, but the numbers get bigger --- so we think we are getting richer. The difference between our two approaches is that you believe gold will be the "insurance" and its price will rise pari passu with the devaluation of the currency and I don't --- and for one reason: the powers-that-be, by controlling the POG (within certain limits), give credibility to the illusion that paper money has "value". For this reason, they dare not allow the price of gold to get out of hand and, in fact, the more disappointed investors in gold become, the more "valuable" paper money appears to be. Thus the price of gold is not a reflection of the "worthlessness" of paper money but of its "worth". POG rises and falls with the USD and rises and falls with the Euro. In fact, the gold price has been "tamed". And that's my opinion.