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

To: William JH who wrote (12418)	5/30/1998 9:32:00 PM
From: PaulM	Respond to of 116898

William, FWIW, why just Japan? No question in my mind that the world's demand for $'s has increased. No other way to explain why increase in dollars hasn't increased the price of real things in $'s to a larger extent. Not entirely sure why foreigners would do that. Certainly, the fact that Germany has 14% unemployment and Japan is going through the equivalent of a 1929 bust has something to do with it. But why $'s, why not gold? Seems likely related to M Easterns decision to settle oil sales in U.S. $ only. That would certainly increase demand for $'s. Why would Saudi's do that? Everyone knows we spend $40 bill military expenditires a year protecting the few families that run the show in that area. That seesm to be part of the exchange. There has been speculation that the ME's have been paid off in gold to complete this deal (ala ANOTHER) but no evidence of this that I know of. There may also be a perception that the U.S. has got its financial house in order. And I'm convinced that CB lending/sales have kept the POG uneconomically low. My two cents.