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To: skinowski who wrote (80328)	9/1/2003 10:46:36 AM
From: ajtj99	Read Replies (1) \| Respond to of 209892

The USD is backed by the full faith and credit of the USA, same with our debt. If I recall, the US does own a few substantial assets, like Hoover Dam, a whole armed service with property and assets all over the globe, buildings everywhere, land, forests, airports, roads, bridges, The Mustang Ranch, etc. There is more than enough to back the US debt and currency. Even if the US runs up huge deficits, you can't discount these hard assets. If we do run short on assets in the future, we'll just have to invade Canada, or invade Mexico and trade it to Russia for Siberia or something. <G>

To: skinowski who wrote (80328)	9/1/2003 12:25:41 PM
From: James F. Hopkins	Read Replies (2) \| Respond to of 209892

Skin; Black Gold..( OIL ) is really the major currency in the world today, and has been since WWI.. I mentioned this a few times in the past, but not many people were interested.. ---- As for gold, it's more emotional crap.., the real big players have known for years that OIL ( and natural gas ) is the king of currencies. Even a commodity such as soap is a better currency than gold. --- For years I've worked in one way or another in the offshore oil business and have seen a lot of crooked deals taht never got into the news, the manipulation of the price of oil & natural gas is more extreme than any currency, most of that manipulation is out of sight of the markets (under the table.) and by the time it shows up in the market price; it's history. --- IE: the ENRON scam..was just extreme , but that type of scam is always with us. Black Gold rules the world..Big money could care less what the yellow shit does. JIM PS If I were to hedge against inflation I would play Soap futures before I'd play gold futures, but I'm not big enough to play either, so I hedge a little with inlfation ajusted bonds. And I buy some raw land when I find it cheap enough and can get a break ( discount ) on the taxes. PS 2 ( I-Bonds ) now paying more than the 10 yr TSY,

To: skinowski who wrote (80328)	9/1/2003 1:09:18 PM
From: nspolar	Respond to of 209892

skin, I don't propose to understand. I don't think it necessary however for a currency to be fully backed by gold. As I recall the Moslem gold back dinar does not mean that all transactions will be in gold, per their plans. A ledger does not have to be settled but every so often, for example, on the net balance. It seems doubtful to me that gold will become currency again, except perhaps for a short duration. Right now I think it more than likely somewhat akin to the Inet boom, with a little more asset backing. If gold does become currency or partial currency, the US is not in that bad of a position. We have decent reserves. A couple things to remember, when you get all depressed thinking about all the stuff going down: a) The US has so far proven to have better internal cleaning mechanisms than any country current or previous. I do have some faith they will continue to work. We have a little cleaning going on in CA as we speak, and a major election coming up very soon. The thing I dislike most at the moment however are all these Chapter 11's that should have been Chapter 7's (hope I got that right). The Enron's, MCI's, Kmart's, etc. should have been wiped out, and they were not. Maybe however the flip side would turn into a monopoly problem. b) Technological change. Hopkins states the importance of oil. What if oil suddenly became a much less important source of energy? The ME would wilt in importance and you would see oil rich countries trying to get rid of their resource as fast as possible. It will happen, maybe not in my lifetime however. Right now we are experience major social change due to technological advances, although most of us do not realize it. The Internet imho is the major driver, and it has barely started. I might add everyone speaks of China and how powerful they will become. That remains to be seen. The internal organization within China is I believe extremely corrupt, and a 1 party system like they have is not very good at cleaning itself. Russia is a quite recent example. Reagan didn't bring the Bolsheviks down, they brought themselves down.