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Gold/Mining/Energy : At a bottom now for gold? -- Ignore unavailable to you. Want to Upgrade?

To: Roebear who wrote (927)	11/16/1997 11:04:00 AM
From: Jim Ilchyshn	Read Replies (3) \| Respond to of 1911

Back again... Well Nick Guarino predicted this a year ago. Expect the Nikei to go to 12,000 and lower. Wall Street Underground continued... Asian economic excesses put their currencies under attack. Asian governments needed to support their failing currencies and sotck markets. They did this by cashing in their U.S. government securities. If these securities had reached the open market, their prices would have plunged. That would have bled over into th U.S. dollar and stock market. It would have brought on three events that are totally unacceptable to U.S. politicians: 1. U.S. interest rates would have soared. This would have brought on a recession and a major stock market downturn. 2. U.S. debt would have soared, because the U.S. would lose its foreign subsidy. 3. U.S. inflation would shoot through the roof, as the subsidy of cheap foreign goods was removed. So to prevent this, the Fed has been buying back Asian holdings of U.S. government securities. To pay the Asian investors, the Fed has printed money. That let them keep the securities off the market. This is called m"monetizing the debt." It means the Fed has been printing money out of thin air. They've done so to pay off Asian governments. That is why U.S. government securities prices have been rising through this first stage of the world crisis. But it's come at a cost: double digit increases in the U.S. money supply. America now has the largest money supply in her history. This is the classic mistake. More money does not bring prosperity. Only more production can do that. But no government today - no central bank - is willing to take the bitter medicine. So they must suffer the consequences of their actions: a prolonged, significant stock market downturn; a bear market; an economic depression; a global currency crisis and massive global inflation. Asian markets must do the same thing the U.S. stock market must do. They must correct their still ridiculous over-valuations. continued...