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

To: E. Charters who wrote (18076)	9/11/1998 12:34:00 AM
From: Pete Young	Read Replies (1) \| Respond to of 116896

No gold ran up THEN Roosevelt valuated by fiat in 1934. It went from 20 dollars an ounce to 35 in the depression. Roosevelt fixed gold before it could trash the dollar and to hide inflation that he had planned. Two chickens in every pot. With gold at 40 bucks he figured he could not hide what was obvious. Inflation had to occur to restart prosperity. He also intended to buy currencies and make the $Us dominant. Again he could not do that without hiding the true US money supply. He had lots of gold, oil and dollars so he knew he could get away with it. One ofthe big keys was Texas oil. It ran the WWII. Also productivity was at an all time high. It worked for 20 years. In 1972 it all came apart. Nixon honestly thought Gold would go to 16 dollars an ounce. In 8 years it was 800. Well I'll be. I read in The Great Crash 1929 by John Kenneth Galbraith about the fiat valuation of gold and Galbraith didn't explain the rationale behind it very well...or rather, if you are right he lied. He said that the reason the administration did it (he was part of the administration at the time) was to support or raise commodity prices as there seemed to be a link between agricultural commodities and the price of gold. I smelled something there, as that is about as sensible as noting that horns blaring and car crashes seem to go together and thus concluding that removing horns would preclude crashes. Your explanation seems much more believable. Thanks, Pete