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Pastimes : Ask Mohan about the Market -- Ignore unavailable to you. Want to Upgrade?

To: Tommaso who wrote (11477)	12/14/1997 7:46:00 PM
From: Zeev Hed	Read Replies (2) \| Respond to of 18056

Tommaso, I was not one to disagree with you then on Arakis, as a matter of fact I said SELL on the day of the venture announcement (I have since said buy and sell few times, and I would say my hit rate was better than 60% if you still folow that moribond thread <VBG>. I really do not know what is the fair price of gold, all I am saying is that linking world currencies to gold is a straight jacket and will force permanent inflation and the removal of important assets from being productive. Let say that the world money supply is optimized at a given percentage of the growth rate of the world total production of goods and services, and let therefore say that in a perfect world, the money supply should grow exactly at the rate of growth of the economies, if it gros faster you get inflation, if slower, you restrain the growth. That means that we have to put away each year 10% of the world marginal growth in vaults (assuming that we back currencies at a low percentage of 10% gold and that the money supply is one for one the respective GDP, if it is a smaller percentage, which it should be due to velocity, use that percentage). That means also that we have to allocate to gold digging and purifying, a big chunk of the total world production means. That is IMHO a waste of resources. Zeev