Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: loantech who wrote (1023)	9/25/2003 9:03:28 AM
From: glenn_a	Respond to of 110194

Heya Tom. ((as the dollar weakens, gold rises or can and as the dollar continues to weaken interest rates are raised to attract dollar support, so we can have a period of time where rates rise at the same time gold does. ???????)) Absolutely. But the string will be pulled tighter, increasingly the systemic fragility of the global financial system. What precise flapping of the butterfly's wings causes a rupture ... is hard to say. Also, if rising interest rates cause derivative and banking defaults, gold could still serve as a safe-haven investment, for it has the attribute of being an asset that does not have a counterparty as a liability to the asset claim (unless of course, its is "leased gold"). Also, for the developed world, asset seizure in developing countries takes the form of formal monetary policy and IMF/World Bank policy. In the developing world, it takes the form of nationalization. Same intent, different methods. It is entirely possible that raw material bodies could be nationalized over the next decade in developing nations ... and in certain cases, I would personally support this. However, I believe in most cases that is a ways away (like a couple of years anyway). Although interesting that Chavez in Venezuela is already talking about this ... though only in special cases involving legal abuses (to my understanding). Regards, Glenn