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

To: Bobby Yellin who wrote (15633)	8/11/1998 7:30:00 AM
From: Mark Bartlett	Read Replies (1) \| Respond to of 116770

Bobby, Hope that all is gong well. PMFJI <<Hi- would you explain this further..also why then did Canada spend so much money recently defending their currency? hasn't the government helped create rage among the resource sector employees? How much of their plight has been caused by their social programs and how much by the flight of Asian assets?>> My opinions are as follows: 1) Canada was trying to send a message to currency traders i.e., we are prepared to defend the dollar - so do not get caught short 'cause we will make it hurt. 2) Most of Canada's resource sector actually benefits from a lower dollar - so for them it is not a bad thing. 3) Canada's social programs have been trimmed a lot in the last few years - in fact our unemployment insurance plan has billions in surplus .... some of the provincial premiers want the Canadian Feds to ease up on UIC payroll deductions because of the surplus. Loans for education have been cut, welfare has been cut, medical benefits have been trimmed etc. Canada's woes at the moment are pretty much Asia focused IMO - that is where the problem is perceived to be. Canada's exports to US have gone up considerably in the last year. I had a figure, but can not find it. I know from talking to my own circle of friends that trips to the US or buying US goods is out of the question - just too much pain in the currency conversion. By the time you pay the exchange rate, you realize you can buy other goods or go to other destinations much cheaper. Only a matter of time this situation will affect the US in a negative way .... you guys south of us may be the last to feel the pain - but IMHO feel it you will just like the rest of the world. That of course is why the US is desperate to prop up the yen and the yuan .... if they devalue too much, your exports will be completely trashed. Then you will have to devalue to remain competitive or put up trade barriers (not politically a good idea). The process of devaluing to remain competitive will import inflation back to the US because your dollar will buy less. In any event - those are some of my thoughts ... got to run to work ... best to all, MB