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Politics : Gold and Silver Stocks and Related Commentary -- Ignore unavailable to you. Want to Upgrade?

To: Bearcatbob who wrote (14405)	6/17/2005 10:02:21 PM
From: tyc:>	Read Replies (1) \| Respond to of 18308

>> would look for the long waited move in gold - a move against all currencies This is not something to "wait for". It has been happening inexorably over the years. See, for example Gerbino's "ROAD MAP ON THE MINING STOCKS" on Kitco. In it he points out that commodities (including gold) are cheap. Adjusted for inflation they are at the same level now as at the depth of the depression in 1932. That says that although gold has historically out-performed all currencies, it still has not kept pace with inflation. In its turn gold has been out-performed by stocks (e.g. the "DOW" etc)and other asset classes. This is probably the same phenomenon you remarked on earlier today. It is probably un-remarkable

To: Bearcatbob who wrote (14405)	6/18/2005 12:37:53 AM
From: Crusader	Read Replies (2) \| Respond to of 18308

I totally disagree that such a deficit is a sign of a healthy economy... it may be good for the short term I agree but eventually it has got to catch up to them. I'd be having a good time too if I borrowed lots of money year in and year out constantly racking up debt. Let the debt continue to rack up... and the fall will be harder and their currency will tank and the Americans will fall.

To: Bearcatbob who wrote (14405)	6/18/2005 11:24:47 AM
From: seventh_son	Respond to of 18308

Bearcat, I think that it's easy to look like you have a healthy growing economy when so much of the spending is services paid for by borrowing from foreigners. Canada in the 80's was similarly booming, but the truth behind it was that it was a simple reflection of the government spending the country into oblivion with boondoggle projects funded by foreign borrowing. There was a very serious price to be paid in the 90's and thankfully the US economy was in better shape at the time and we were able to step back from the very verge of bankruptcy. Canadian politicians in the past often justified wasteful spending by claiming that there was a multiplier effect -- you spend one dollar on something and then others spend that dollar etc, creating much more economic activity than the dollar spent. They fail to mention the divider effect of stealing this money out of taxpayers' wallets so that it could not be spent sensibly elsewhere, eliminating a different multiplier and rendering the logic false. The US has its own multiplier effect with spending borrowed money coming from China and Japan. What will happen when this money needs to leave the system to go back to repaying this debt and the cycle works in reverse? The booming present will be more than paid in full with a depressed future.