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Non-Tech : The Woodshed -- Ignore unavailable to you. Want to Upgrade?

To: nspolar who wrote (5506)	4/30/2004 9:30:18 AM
From: 3bar	Read Replies (1) \| Respond to of 60902

NS : Commodities move on a currency devaluation for some of the same reasons gold does. First think of money as a commodity . Print more of it lower it's value. I raise my commodity to cover this discrepancy. It also acts as money. I sell you a product. You give me $. It also follows appeal and fashion trends in speculation. I from Canada sell you a ton of nickel. You send me a letter of credit. I take this to my central bank. They exchange my US $ for my own currency. As banks around globe try to buy Canuk $ at last months rate they find a problem. The demand last month was for only 1 bill. This month it is 1 bill 2hun ths. This puts up ward pressure on canuk $ as the combined effect of all commodities takes hold. The speculators step in and my $ now has appeal. So I raise my commodity price for three reasons. You have printed more $. My commodity is worth more of your $ now. Speculation is telling me my prices should be higher. hope this make sense jack