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

To: philv who wrote (12767)	6/9/1998 2:38:00 PM
From: James F. Hopkins	Respond to of 116820

Phil;RE>>It is 21% overvalued compared to the Mark, 33% compared to the Yen. They estimate US trade deficit to go to 284 billion this year! Their calculations take into consideration the increasing trade deficit when determining currency value.<< BUT in the same article: William Roy White, head of the monetary and economic department at the BIS, said the trade-weighted dollar measure is more accurate than a purchasing-power measure also included in the BIS report. That calculation shows the dollar is undervalued and should be at 2.02 marks and 169 yen. and the above shows it 16% and 17% undervalued -------------------- and they go on to say it's trading somewhere in between. they point out on top of that in world reserves the Dollar has a huge standing. but they fail to point out that to cut the dollar would cripple 9/10ths of the international banks that hold these reserves. Ie The report also showed official foreign exchange currency reserves held internationally rose by US$105.3 billion in 1997, after rising US$200.6 billion in 1996. That took the total to S$1.58 trillion, of which US$1.1 trillion was held in dollars. so the dollar held in reserves, amounts to about 64% of all reserves..how do they dump that with out shooting themselvers in the foot..( the most likely way is to accumulate gold but they want the dollar high and gold cheap when they go for it) ------------------- Money is now traded so much like anything else, and the Dollar has captured so much Market Share..it's like a stock that is the leader in its field. While a lot are pinning hopes on the EU to take the dollar down, I don't count on that. If they turn back to gold, then the dollar may fall, till then it's got almost a monopoly. -------------------- The U.S. didn't create that..it's the lack of faith foreigners have in their own currency. ( also a big currency black market in most third world countries were the dollar on the street trades at 1.5 to 2 times the official exchange rate.) and nobody seems to want to call attention to that, but I do boat delivers and run into it all the time, and must carry on board a very sizable "purse" for certain expenses so as not to get ripped off by the unreal exchange rates. Ie There is a double standard if you pay cash, and in American Dollars for stuff you need to buy in third world countries. In some of them you must use the local currency, to buy stuff heck most time the local pilots who come aboard, will offer you an exchange far above what you can get at the bank. ------------------ This black market seems to be the result of crooked politicians, and not always ours. Also the need of the international criminals to clean up dirty money. The double standard causes them to have to pay a big tax to clean it up. ----------------- Dope runners are dopes..you can run dollars at less risk, and even buy gold in some countries at a big discount if you are willing to deal in the black market. ----------------- On another slant. Do you remember Back when IBM tried to corner the memory market and congress approved a big SUR tax on imported memory, guess what happened. and the tax didn't last long either. And if had not been for the "memory runners" you would be paying 10 times what you pay for a computer, if people like IBM and INTC and MSFT had their way. So they learned that import tax crap don't work to good. At one time I could have got you an "exact" clone of a INTC cpu..and I mean exact, right down to the markings and all, at 1/3rd the price of the INTC , not a clone such as the AMD ..but a carbon copy of the real thing. Bill Gates is pulling his hair out about knock offs of his windows system. Some countries say they respect our copy right and patent laws, but don't really. And in some cases I can understand their feelings. Why should some monopoly say to the world , hey I'm the only one who has the right to make the gasoline that can run in your car. Why should U.S. laws allow a Win/Tel monopoly to take over the worlds computers. Many foreign countries simply wont go for that, and Bill Gates, and INTC and MSFT can cry about it all they want. -------------- And the Money Markets are more complicated than BIS reports, no one has the data on the black market value of the dollar, as all of the countries were it exist will deny it. I can't even make a good guess. Jim