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

To: lorne who wrote (6221)	1/18/1998 1:56:00 PM
From: lorne	Respond to of 116790

South Africa Mine Union Wants Summit On Gold Slump. mg.co.za

To: lorne who wrote (6221)	1/18/1998 7:35:00 PM
From: JD	Respond to of 116790

Balancing act. Lorne - re you question: when and if these countries wish to purchase gold which currency do you think they might use, local or dollars and in the short term how might this kind of arrangment affect the $US. I think the question isn't what currency they will want to pay in but rather what currency sellers will accept. For now I would assume that the US$ is still standard for purchasing gold ... especially in the chaotic currency world of Asia. However, if ACU becomes a reality we might see 2 standards ... US$ and ACU. Is it possible then that in order to then compare these systems against each other we might then be forced to turn to gold and by default return to a gold standard???? Danged if I know. I believe the short term effect on $US of intra-asian currency system would have to be to force it down. To my mind it's an indication that ASEAN is telling the US that they will not let the US dominate the world by establishing the $US as the only accepted standard. I think it's as much a political defense tactic as an economic survival issue. I wonder if human nature will allow any country's currency to be the global standard for any length of time the way the US$ currently is. The resentment factor would just build up until where people just go off and build something to replace it. The US did it to Britain, and I think it is inevitable that someone will do it to the US. The ACU could be the start, spurred by the collapse of those economies in relation to the US and the subsequent growing perception there that the US is trying to now take over by 'buying' what is left of Asia and enforcing their way of doing things. Gold is apolitical. You have it or you don't, there's no ego involved. After all, is the US$ the Asians are resisting or the US. Just my opinions at the moment. I don't know if I'm right or wrong (and not overly concerned either way since I really have no influence over the outcome) but it'll be interesting to look back at it in hindsight. JD