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To: Alex who wrote (3336)	11/20/1997 4:40:00 PM
From: David R. Schaller	Read Replies (3) \| Respond to of 116836

Alex, great read. Do you or anyone know why the constant huge trade deficits are not forcing a devaluation of the dollar? It seems like we are exporting our inflation ($10bil/mo) and importing asian deflation. It seems to me that the only reason it hasn't already caused problems is because the asian countries choose to leave the balance of payment dollars owed them in t-bills. Are there other factors? Thanks, Dave

To: Alex who wrote (3336)	11/20/1997 6:28:00 PM
From: goldsnow	Read Replies (1) \| Respond to of 116836

Alex, World Council strucked a deal with CB's? Central Banks not dumping gold- World Gold Council 01:21 p.m Nov 20, 1997 Eastern By Marius Bosch JOHANNESBURG, Nov 20 (Reuters) - The World Gold Council (WGC) said on Thursday it was wrong to think that the world's central banks were dumping their gold holdings. ''It is wrong to think that central banks around the world are dumping their gold, because we only had three sellers over the past two years, which means that 177 central banks around the world still think it is a damn good idea to hold it,'' WGC gold market analysis manager George Milling-Stanley said. The WGC, backed by a number of producers, monitors gold demand in countries accounting for about 75 percent of global gold consumption. Gold's plunge began in July after the Australian Reserve Bank said it sold 167 tonnes of its holdings. It fell to a fresh 12-year low of $299 per ounce this month after a study recommended that the Swiss Central Bank should sell 1,400 of its 2,590 tonnes stockpile. Only three Central Banks, those of Australia, Belgium and the Netherlands, had made substantial sales from their holdings in the past two years, Milling-Stanley said. He told analysts at a Johannesburg briefing that the decision by the Australians to sell should not be seen as a indictment of gold because they had reduced their holdings and said they would still retain 80 tonnes of gold holdings. The WGC's latest Gold Demand Trends publication said holdings of ''All Countries'' published by the IMF showed a net decline of 217.7 tonnes of gold between May and August -- most of this deliveries from the Australian Reserve Bank against the forward sale of 167 tonnes of gold. Milling-Stanley said misunderstandings about recent gold developments -- including the Swiss study and German comments that the country's gold holdings should be revalued -- needed to be cleared up. He added that the WGC was in close contact with central banks and found central banks ''very useful allies.'' ''Central banks are a factor in the gold market and are more a factor because of what they are lending rather than what they are selling.'' Milling-Stanley said lending of gold by central banks now formed an increasing part of gold supply. ''I believe that that in total, not on an annual basis...is probably the biggest single component of supply. ''And it is a new one and it is one that a lot of people still do not include in their analysis of the market and that is why the price is where it is,'' Milling-Stanley said. Copyright 1997 Reuters Limited. All rights reserved. Republication and redistribution of Reuters content is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.