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To: LLCF who wrote (37746)	12/3/2005 7:23:00 PM
From: TobagoJack	Read Replies (3) \| Respond to of 312408

I wonder if the officialdom will allow us, perfectly ordinary sorts, to devise and sell into the market a perpetual call option on a basket of currencies that increases the supply of ... oops, there is the key word ... "money" :0) and call the instrument "paper gold" ... yikes, and there is the secret to financial bliss, until nightmare. there, we now understand what the Economist termed as "huge source of supply". we must be thankful for all the stupidity that passes for wisdom, else we would have to work for a living :0) as to the CBs selling less or buying more gold, i always pictured the process as part of the fabric and component of the design, as in ... (a) deficit nations and individuals must sell gold (b) surplus folks and states always take in gold (c) when there are more deficits than there are surplus appetites for gold, gold price falls (d) but the process is self-correcting, as eventually the deficit people and nations blow up, leading to a spike that spears through the monetary systems of the deficit neighborhoods (e) monetary reset, and newly pauperized neighborhoods starts working for a living again, gold flows back - the very same gold that has been going back and forth, since the days of city states and the biblical times earlier still, perhaps even to the days just after adam and eve. we all are participating in an endless loop, a drama, or history :0) chugs, jay p.s right now i have a huge appetite of demand for gold, but do not have enough supply of paper to pay for such gold ... bummer should the CBs feel up to the task, want the thrill, can then take my IOU and hand over their gold, it will save them quite a bit of troubles with safe-keeping and ledger recording, and earn interest, in more paper, backed by the full faith and credit of ... there is the detail that spells danger ... me, and my secret best friend, my printing press, and my ultimate machine, a helicopter that drops paper the CBS are actually not so stupid, certainly not as deficient as folks who saves cash

To: LLCF who wrote (37746)	12/3/2005 7:40:33 PM
From: tyc:>	Respond to of 312408

Dak I agree with you... but then were the pronouncements of economists ever right ? As I see it, in Washington Accords, the central banks agreed to hold their lending of gold to current levels... . There could be no change in supply if there was no change in the level of CB lending. In recent years, there has been 'de-hedging'. I guess that means there has been a reduction in the level of CB loans. Borrowed gold has been restored to bank vaults. To that extent supply has been reduced.

To: LLCF who wrote (37746)	12/3/2005 9:15:26 PM
From: goldsheet	Read Replies (2) \| Respond to of 312408

The best article in the current Economist was not the brief gold essay, but a special 14 page report on Canada. You can get a free one day pass to read it all at economist.com (have to watch an ad and have cookies enabled) Topics were; "Alienating the West (Canada gets its own Texas)" Talked mostly about the Alberta oil boom, but also that Alberta and BC were running surpluses and sending lots more to Ottawa than it gets back "A dream that does not fade (Quebec might yet quit Canada)" For/against is now about 55/45, time for another referendum ? "Living with Number 1 (Rocky relation with US)" "A funny sort of government (Canada'a dysfunctional politics)" "The perils of cool (Canada has everything. except perhaps ambition)" Lots of data, such as in 1981 American were $C1800 better off than Canadians, in 2003 $C7200. Canada has not experienced productivity increases like US In 2000 output per man hour was 82% of US, now 75% Canada invest less in capital, R&D, science and engineering, etc.. The general impression I got from the articles was that Canada has gone back to its role of providing raw materials, combined with labor from Mexico, to fuel the economic growth of the United States. I like Canada, but the articles were more than a little depressing.