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Gold/Mining/Energy : GOLD-XAU -- Ignore unavailable to you. Want to Upgrade?

To: paul ross who wrote (159)	11/23/1997 12:14:00 AM
From: philv	Respond to of 1756

Paul: If I may, governments could simply "print money" or better yet, allow the deficit to rise (same thing) to cover the expense. Other options are to actually pay for the expense through tax increases and government cut-backs. (Sound familiar?) These "remedies" are some of the ones insisted upon by the IMF when they are called in. Higher taxes and cutbacks have their own undesired results. Also of course, bail-out money is expected to be paid back as it is a "loan" or "loan guarantee". I imagine these things are universal. Regards Phil

To: paul ross who wrote (159)	11/23/1997 12:51:00 AM
From: Richnorth	Respond to of 1756

In 1971, at the height of the War in Vietnam, President Nixon delinked the dollar from gold. For the next ten years or so, the printing presses went into overdrive churning out such prodigious amounts of "paper" money that, in the highly inflationary environment that ensued, gold had no trouble soaring to ~$800/oz in 1980. Then about a couple of years later, someone made an amazing discovery---- leasing the gold and forward sales and gold deivatives/options/futures etc, and ever since then gold never seemed able to stage any impressive rise and has been losing its lustre bit by bit. However, I like to think that gold will stage a comeback sooner than later. Contrary to the recent pronouncements of Rubin and Greenspan regarding the strength and stability of the US economy, I believe the competitive rounds of currency devaluations in S.E. Asia will force the greenback to be devalued sooner than later. This, coupled with the US Government's highly inflationary activities of printing more money, increased spending and assumptions of debt, will result in a decent runup of the pog. Believe it or not: power corrupts and absolute power corrupts absolutely. To be sure, we all have been had. We tend to trust the news media too much without realising that the news media have been obsequiously pro-government. I tend to believe that some of our government's news releases are nothing more than disinformational bafflegab. To be sure, no government is 100% honest. And I tend to regard the official data on inflation, CPI, PPI etc. with not a little skepticism. So, to me, it appears that not everything is as what the government says it to be.