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Gold/Mining/Energy : Precious and Base Metal Investing -- Ignore unavailable to you. Want to Upgrade?

To: Canuck Dave who wrote (17252)	8/19/2003 10:26:17 PM
From: Little Joe	Respond to of 39344

A reasonable explanation. Little joe

To: Canuck Dave who wrote (17252)	8/19/2003 11:38:13 PM
From: Andrew	Respond to of 39344

Large short positions can be considered a bullish indicator. Shorts usually cover at some point, especially when they get squeezed.

To: Canuck Dave who wrote (17252)	8/20/2003 1:18:26 AM
From: E. Charters	Read Replies (1) \| Respond to of 39344

Central Banks are trying to make hidden inflation that ballooned stock prices in the 1990's and made the M1 into a pile of trash. (non-inflationary "growth") They are doing this to protect the western currencies and prevent gold from becoming a medium of foreign exchange. This was the Keynesian plan during the 1940's that led to his trashing of gold as a "barbarous relic". Keynes' rhetoric was designed to make pundits think that gold was useless a medium of exchange between nations as it had been for centuries. This allowed the Us to inflate the dollar and keep its exchange rate constant with other nations. Ergo -- to prevent the foreign nations from deflating their currency in order to pay deficits by trade, and to keep the US dollar as the preferred medium of foriegn exchange. This made US the world's banker and the dollar uninflatable in world terms. Neat trick. Of course Keynes was wrong, on purpose. Gold is an ideal medium of exchange as it changes little in value, or stays relatively constant between currencies at any rate. There does not have to be equal or any percentage of gold in existence with relation to other goods in order for it to have this role. Bush's pushing down of the dollar echoes Carter's same effort. The idea is to catch up to nations like Canada that have let their currency slide against the US buck and have contributed to the US trade deficit. With that and cross border tariffs on anything that matters, free trade is perfectly useless. It is high time we dropped this pretense for once and for all and established reasonable tariffs. It is an established economic fact that no smaller market country can compete in any manufactured product as its domestic market is not robust enough to allow a good volume pricing. EC<:-}