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Politics : Israel to U.S. : Now Deal with Syria and Iran -- Ignore unavailable to you. Want to Upgrade?

To: philv who wrote (11122)	6/9/2006 10:52:28 AM
From: sea_urchin	Read Replies (1) \| Respond to of 22250

Phil > Gold it seems has taken on the mantle as a proxy for commodities at this time. That's the way I feel and that's why I say if they can "control" the gold price they can give the illusion that inflation is under control (besides rigging the figures, of course). > Gold, of course is much easier to manipulate than the metals or oil, as it is not a consumable item. Exactly, in fact it's rather a small market compared to the industrial metals. > the amount of metal in storage of copper, zinc, nickle, etc. is very low. Yes, I believe that's true and also there's an apparent reluctance to increase production for some reason. What really surprises me is how firm copper is, particularly compared to aluminum which is generally regarded as an almost perfect substitute. stockcharts.com[l,a]walaynay[dj][pd40,2][ilb14!la12,26,9] stockcharts.com[l,a]walaynay[dj][pd40,2][ilb14!la12,26,9] stockcharts.com[l,a]walaynay[dj][pd40,2][ilb14!la12,26,9] > I have concluded that what is going on in Asia is for real, and that demand will continue high Again, I agree with you, particularly if US demand for finished products remains high as I believe it will. > I think that gold will recover I'm sure it will. What we have just witnessed is merely a shake-out of weak holders. But we may not see such a dramatic rise in the gold price as happened in the run-up to $730. I see no inkling that the US intends to stop printing and borrowing and, as far as I'm concerned, the messing around with interest rates merely disguises the real driver of the gold price, namely the continued devaluation of the dollar. > The printing press has a speed controller on it. The arrow on the controller points to the right from slow to fast to faster to infinity I don't know how they set the control but I do know they dare not stop printing because, if they do, the house of cards will fall down -- the deflation will lead to a depression worse than the 1930s. Nevertheless, I think it is important to have a less pessimistic view about it and not believe that the US is about to collapse simply because of the debt and the printing. IMO, this game can continue for a very long time still -- but all the while the US is slowly impoverishing itself. And, as we know, this is happening geopolitically as well as economically.