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Gold/Mining/Energy : At a bottom now for gold? -- Ignore unavailable to you. Want to Upgrade?

To: Vieserre who wrote (1362)	7/6/1998 7:32:00 PM
From: Bobby Yellin	Read Replies (1) \| Respond to of 1911

excellent questions..also appreciated your post about abx.. to support my view about the market..I use as two examples amazon and yahoo ...I laugh when I look at their multiples and the lemmings who are making a fortune..(don't think I have to explain that one) if that is the kind of logic that rules the markets...along with Japan sending off spaceprobes to "save face?" rather than cutting corporate and personal taxes..Clinton playing up to China while Albright is reassuring Japan it is not as it appears.. trying to understand the workings of the financial world I think one first has to take a huge dose of silly pills :>

To: Vieserre who wrote (1362)	7/6/1998 9:20:00 PM
From: William JH	Read Replies (2) \| Respond to of 1911

Forgive me for intruding, but I don't see how any comparison can be made between the National Debt and a mortgage for a home. I've had four mortgages, three of which have been paid off. The fourth is being paid down every month. The U. S. Gov't debt increases every month, but more importantly, I don't believe it will ever, ever be paid off.

To: Vieserre who wrote (1362)	7/7/1998 1:23:00 AM
From: ahhaha	Respond to of 1911

The BIS is self-serving sham. We buy Toyotas. The clearance mechanism causes Toyota to factor the dollars they receive in payment back into dollar assets. The volume is so great that the Japanese have to buy T-Bonds and other T paper. Those dollars if they went to Ford or GM would not significantly go to the buying of government debt, it would go to less efficient investment. The mechanism is a giant forced savings program. The benefit to the Japanese is that they get the interest but we get the advantage of the effect od the invested principal. Through GM the money would be squandered on consumption through one way or the other, but the money being held as the possession of Japanese has enabled the Treasury to manage further debt, retire old bonds, and get the long term debt issuance more firmly under control. If the Japanese wish to sell the bonds, they will receive dollars in return and that would force them to factor them back into the US by buying our goods and services. Until now they haven't wanted to do that, but stimulative monetary policy in Japan would cause the yen to rise and the Japanese would start buying American goods. If we don't have inflationary policy which is only enabled by the FED, then the liquidation of T-Bonds by Japanese need not be a significant disruption of our T market. So in any event only under the assumption that the FED will not allow inflation, the debt held by foreigners isn't a problem. When people buy houses they have no idea if they can afford the payments. They buy anyway. They're unjustified in so doing, yet it is rare that that decision is ever incorrect. With the national debt you have to see that it is superfluous. Who receives the interest? The individuals in the nation. Who pays the interest? The individuals in the nation. The debt is a form of transfer payment whose effect on real economy is essentially net zero. The payers and the payees don't have sufficiently different preferences, so it doesn't matter who is spending. If the debt wasn't there, the income used to service it would be spent in essentially the same way. This is a non-event that gets press because people equate the nation to an individual. A nation isn't an individual. An isn't one in a most significant way. Nations are perpetual. They'll always pay. Individuals die; they may not pay. The differences between the states are so infinitesimal that the spending preferences are hard to determine. Communications have blurred all lines.