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

To: Vieserre who wrote (1415)	7/14/1998 11:39:00 AM
From: Ahda	Respond to of 1911

All, Last night i tried to find statistics on Asia it is a feat the IMF has opened an new division where one can write each nation and acquire said. I have not done this. There is also a piece on derivatives the question of transparency in derivatives which made me wonder if nations play the derivative market. There was an amendment ot the Breton Woods Constitution that occurred in 1978 haven't found that either i think it has to do with gold as the original constitution dictates that currencies are leveled with gold. Asia growth has come recently much from investment from elsewhere and the query entered my mind of apathy of the people where poor in certain parts of Asia are as the trees that grow part of life. We here find poor deplorable. Pakistan also is close to being defunct My thoughts later turned to the fact that what took certain groups out of poverty was the dollar. Gold has been carried for many years as safety and growth had transpired as dollar based. Perhaps this also goes back to the IMF 78 amendment i am unsure. It just seems when half of the world broadly speaking is in dire financial straits that we here are so well off doesn't make sense. Neither my son nor i could understand why how we can continue to reap so much while others are so adversely affected. Perhaps what I am missing is labor costs in Asia force competition in Asia and create more stress on Asia. Nattering maybe

To: Vieserre who wrote (1415)	7/14/1998 12:57:00 PM
From: ahhaha	Read Replies (2) \| Respond to of 1911

Do you remember when I made those negative remarks about the BIS? This is representative of their competence: Andrew Crockett, general manager of the Bank for International Settlements (BIS), told the symposium that expansionary monetary policy would reduce pressure on the need to carry out reforms in the banking sector and run the risk of widening the crisis in the Asian region. He also said increasing money supply through steps such as open market operations would have little effect on boosting Japan's domestic demand. The machinery is being put in place to expand the money supply in Japan as we speak. The BOJ has proven that interest rates and money supply have elastic and inelastic states. If the BOJ changes short rates from .5% to .25%, they don't need to print one yen note to do so. That is, people won't borrow and create demand deposits as part of doing business if the BOJ lowers rates by buying securities. If there was an extended period of large loan demand, rates were 6%, and then the BOJ tightened cooling the demand, the economy would slow, but the desire to make money wouldn't. If the BOJ then lowered rates to 5%, the money supply would grow because the demand for loanable funds would rise. The desire to make money would cause the money supply to grow. That process had been eclipsed by the pursuit of extended neo-mercantilism so that interest rate manipulation did not create the Pavlovian response of money supply change. Instead of a liquidity trap, Japan has been in a "rate trap". Crockett's claim is exactly incorrect and his justification is part of the myth of the problem of Japan. His conclusion is the one held by the vast majority and it reminds me of why the majority of American economists claimed it was a bad idea to lower taxes: causes the budget deficit to rise and hence rates. Three disconnected factors, but heavy thinking has them all hooked together. When Japan inevitably uses direct measures to increase money supply, demand will rise rapidly, and the yen also. That means gold will rise relative to the dollar.