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

To: Bucky Katt who wrote (4680)	12/23/1997 2:57:00 PM
From: Alex	Respond to of 116753

How many holes in the dyke now? From U.S.A. Gold site............... MARKET UPDATE (12/26/97) AM-----Gold jumped higher this morning on news that if something isn't done in Korea soon the country could experience a total collapse and set off a wave of defaults globally which could threaten fragile markets in the world's financial capitals. Hong Kong might be the first major market to feel the effects in a major way -- Tokyo would be next. Such fears have sent investors globally scurrying for gold. The report said that the deteriorating foreign reserve to short term liabilities ratios in Korea "put the country's liquidity position among the worst of rated sovereigns." Simultaneously, opposition to the IMF bailouts in Asia is gaining momentum in the United States. We questioned these bailouts from the beginning and also have pointed out consistently that the row of falling dominoes could land in Tokyo next and ultimately the banks of the Hudson River. So now we have another Christmas surprise like Mexico four short years ago. The problem is the IMF is out of money and putting the bite on the United States and the American people once again. This time Congress isn't buying it -- at least not at the moment. It would be hard to imagine the circumstance under which the Congress would sanction a bailout of the IMF so that they could in turn bailout these collapsing economies so that they could bailout Tokyo and New York based international banks. My view is that the Asian contagion has blind-sided the financial establishment and they don't have a clue what to do about it. Another brokerage in Japan has filed for bankruptcy this morning and the Korean won collapsed on international markets. Gold is warming to all the trouble. Another 59,765 ounces left COMEX warehouses for parts unknown. Once again we ask "where's all the gold going?". More later. This could be an interesting day. Merry Christmas to all. We will probably report tomorrow though originally we hadn't planned to do so. With all this going on, you will want to stay informed even if it is Christmas time.