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

To: PaulM who wrote (15786)	8/12/1998 9:17:00 PM
From: Ahda	Read Replies (2) \| Respond to of 116811

You forget Canada is resource rich. If she choose she mine gold and sells more. I don't think she will have to borrow US dollars if she thinks. She would stimulate her own economy in the process.The Yukon is streaming in gold.

To: PaulM who wrote (15786)	8/13/1998 4:13:00 AM
From: Zardoz	Respond to of 116811

E.g., with the CDN $ tanking against the $US, and having sold its gold, how will Canada defend its currency when it runs out of US $ reserves? No choice but to borrow dollars US. Which must be repaid. Hehehe, not quite right. There are more options than just the one you mentioned. Raising short term rate is the easiest. Don't forget that Canada has a better deficit position than the USA. Let me extricate a while. 1) Under the deflated Canadian currency, MOST commodity producers have maintained their levels of production which are in respect USD. Yes the exploration companies have sold off greatly, but that is primarily systematic. 2) High tech companies have actually increased they market positions in the US, by what can only be called as US product deflation. So many High tech earnings margin are maintained. 3) Canada, last I looked had a net trade balance. Hey, more exports gotta be good. Now a quick look at the US: 1) The US has an extremely large {not sure of the exact figure} trade deficit. This will ultimetly have a net negative effect when added to: 2) The US has Pump that M2 to a unpresident rate. Thus creating an increasing inflation rate, that gets masked by USD growth, and gets exported as US deflation to Asia. Therefore the US created this Asain problem. And 3) When the foreign capital finally turns homeward, the USD will fall, and YES Gold will rise rapidly. BUT the trade imbalance will escalate as product that were paid for in inflated dollar will be paid for at a dearer price. This will also make the US deficit rise {well USA} And just maybe you will see default. I think what Canada had done, buy selling large amounts of Gold was the correct thing to due. Allow the currency to deflate in a stable decline, and allow the FUNDAMENTALS work themselfs out. After all, a PEG like HK isn't working. Canada would've been in a commodity reseccion long ago, in trying to keep up with the USD. The US is only a part of who Canadians do business with {A large part} But it's more important to maintain the trade surplus, as a socialist society requires a capitalist society to decrease it's deficits. PS: The Asian problem was the US fed fault. And I still suspect the DOW to go down by (22%-55%) from the 9367 high. To which I have a post back in April, that I will dig up, that said {paraphrase: You won't see the DOW above 9365} Yes I know it had a high of 9367.xx But shouldn't I get a little error? Well I'm going looking. {Think it was on the Asian thread} PPS: Recession soon, gold soon. CDN ingore the currency.