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

To: TH who wrote (9526)	3/5/2004 7:13:50 PM
From: Raymond Duray	Read Replies (1) \| Respond to of 110194

Re: It would appear to me the if only the USA has a major deflation, then gold would still be at X in Euros or whatever. Since late 2000, when the US$ was at 0.84 per 1.00 €, to today with the ration now 1.25:1.00 both gold and crude oil have had substantial rises in cost in US$ but have remained essentially unchanged in terms of €s. Conclusion? The US$ is worth less, on the road to worthless. ****** I never get too exercised about the POG. The fact is that this is a completely artificial market for an archaic store of value. Central banks still control enough gold bullion that they have complete control of the market. I recall a few years ago when several European CBs started to unload unwanted inventories of physical gold. The market immediately broke down and the banks were forced to stop their liquidation. That overhang of metal still exists. In a panic, when people in the U.S. start to lose all faith in the Greenback, there will be a race to purchase and hoard gold. The U.S. government will pass another law making it illegal for citizens to own physical gold, while the present holders of gold will find ways to sell it to all takers. Thus, another race to transfer assets from U.S. domiciled institutions will be on, with the professional class in the U.S. constructing yet another layer of business for the myriad off-shore tax havens and wealth shelters that are denying the U.S. Treasury of tens of billions in revenues annually. Sorry for the rambling reply. I watched Hedrick Smith's marvelous Frontline segment last night and I'm just getting carried away on the fumes of creativity demonstrated in the segment on the sewers of Bocham, Germany. An American owned asset. pbs.org