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.

Politics : Dutch Central Bank Sale Announcement Imminent? -- Ignore unavailable to you. Want to Upgrade?

To: sea_urchin who wrote (21097)	6/7/2004 2:38:14 PM
From: siempre	Read Replies (2) \| Respond to of 80950

I can now see the beginning of the end of the manipulation of gold....some can see no end to "the fox in charge of the henhouse" syndrome, but sooner or later [& I think sooner than most imagine] it will happen.... on the subject, this from Jay Taylor today: "Okay, central banks may not be running out of gold. They may still have as much as 50% of the gold they pretend they have (remember central banks falsely report the gold they lease is in their vaults). But somewhere along the way, the Keynesian and monetarist lies will be exposed for the falsehoods they are, as non-western countries snap up cheap gold dumped on the market by the would-be cappers, quicker than a school of piranha tear the flesh off the bones of a mammal. In fact, with Russia, China, and India (not to mention smaller countries like Vietnam or a host of Islamic interests that are reportedly demanding gold rather than dollars as payment for their oil) already selling their dollars for gold, I believe the early stages of this process are already underway. So the policy makers are, as they say, damned if they do and damned if they don't. Even if they were able to engage in a phony strong dollar policy by capping the gold price like the Clinton Treasury boys (Rubin and Summers), with such a huge amount of debt on America's books, the resulting strong dollar would snuff out whatever meager economic life we Americans are now enjoying. But if gold is not capped, in which case the dollar is bound to get much, much weaker, especially given the 20% percent growth rate of M-3 that is taking place now, we are likely to see an accelerated loss of foreign capital leave our shores, in which event interest rates are likely to be driven dramatically higher. And if Bernanke continues to fire up his helicopter dollarprinting machine, and tries to hold down interest rates to keep the economy alive, and in the process causes our money supply to grow like that of a South American banana republic, why would the process not spin out of control either in a hyperinflation or a devastating deflation?"