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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: Bucky Katt who wrote (3136)	11/14/1997 11:20:00 AM
From: RagTimeBand	Read Replies (1) \| Respond to of 116834

To All: Does anyone know of a web site where I can see a graph of the price of gold for the last 6 months (or 1 year)? Regards - Emory

To: Bucky Katt who wrote (3136)	11/14/1997 12:42:00 PM
From: goldsnow	Read Replies (1) \| Respond to of 116834

Greenspan on gold (not sure if was posted) biz.yahoo.com -------------------- Nov 13 (Reuters) - Following are excerpts from the question-and-answer session after Federal Reserve Chairman Alan Greenspan discussed the Asian currency markets in testimony before Congress on Thursday. Greenspan addressed the House Banking Committee at 1000 EST/1500 GMT along with Deputy Treasury Secretary Lawrence Summers. ---------------- REP. FRANK (D-Massachusetts): ''You and others have historically said that the price of gold is an inflationary indicator, and gold is at a very low rate. How do you reconcile a consistent view over time to regard the gold price as an indicator of inflation. Now gold is at a very, very low rate. Does that mean that inflation is not much of a problem? Or has the gold price somehow become an irrelevancy when it comes to indicating inflation?'' GREENSPAN: ''It's a meaningful tool to evaluate the expectations of inflation, which if you're talking about the gold price denominated in dollars, it's one of the major indicators we would employ to make judgments about the expectation for inflation. ''At current prices, we're still more than nine times what we were a generation ago ... ''That is an important question and I don't think we fully know the answer to that, but there is no doubt that the decline in the gold price in the recent past parallels the decline in inflation expectations which we see elsewhere. I don't think there's any question the Asian crisis has imparted a degree of disinflation to the rest of the world. I think that's evident and I don't think we see the full impact as of yet. You have to remember that a goodly part of that has come in the form of goods, tradeable goods. And tradeable goods, while important to our economy, reflect a not very large part of the overall business structure that we've got. If you take non-farm business, goods production is a third of it. The big part is services.'' REP. FRANK: ''Am I correct in saying that your view is that one of the major constraints of our ability to grow at the current rate without inflation is the size of the work force and that you believe that we are in fact absorbing workers at a rate that may in fact prove to be unsustainable?'' GREENSPAN: ''I merely pointed out the arithmetic of what the data show, namely that the number of additions to the working age population who wish a job -- remember that excludes students -- are increasing quite significantly. That number, which is, one must presume, the sustainable rate of employment growth over the longer run, which is a number that is signficantly below what the rate of growth of employment has been, in recent years. REPRESENTATIVE: ''Is it now possible for us to do something concrete as a government with the help of other governments to ensure that, in fact, by the Basle priciples being applied, by using (Asia-Pacific Economic Cooperation) which can be enlarged to the (World Trade Organization), that we began to see some improvement in those domestic banking systems. Can we take those steps as a government ... will it be a priority? Or should we admit that our rhetoric was overblown and these are not major contributing factors? GREENSPAN: ''Well, I remember general discussion of the Basle principles in Stockholm two, three years ago. I was startled by how many countries were represented to try to understand and find a means by which these individual countries could apply those priciples to their domestic banking institutions. I don't believe it's an issue of Basle, the Bank for International Settlements, the IMF states, anybody trying to impose principles on individual countries. ''I think they're seeking ways to ... solidify their financial structures, which in very many instances are fragile, because they increasingly recognize the importance of finance in the developemnt of standards of living in their own countries. A crucial question, however is that it's not a simple issue, bringing a sophistocated banking system to a developing nation. The development of experienced loan officers who fully understand the nature of market risk and what constitutes appropriate lending practices is a very difficult issue to advance. So, I don't think that we need to press them very hard; they want to, and I think we should very much try to find means by which we can assist them, and to do that, we at the Federal Reserve have been engaged for a number of years. ''We're extending a system to individual banking organizations around the world, because we recognize that it's to our interest that finance become far more sophisticated than it is because it serves everybody's purpose, and it is an essential component for the issues of trade across borders and rising standards of living. To the extent that the IMF and the World Bank, in its conditionality, can sharply focus these questions, I think is very much to the individual interests of the individual recipients of contingent aid and it is certainly in the interest of the (Group of Seven industrialized nations) and especially the United States.''<!--END-->