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

To: goldsnow who wrote (21410)	10/11/1998 3:51:00 PM
From: Bobby Yellin	Read Replies (1) \| Respond to of 116893

bloomberg.com check out last sentence.. (wonder what Ron Brown was actually about? wonder exactly how clinton now feels about global economy? wonder how Perot feels..(he seems to have gotten it backwards?)

To: goldsnow who wrote (21410)	10/11/1998 4:29:00 PM
From: Sergio R. Mejia	Read Replies (3) \| Respond to of 116893

20 tons of gold will be used to mint coins (Russia) (From The Contrarian: stocksite.com According to Kommersant, the Russian government has a plan to guarantee its banking system by issuing gold coin. The story has it that 20 tons of gold will be used to mint coin in a number of different denominations, to be put in circulation by year-end. This is very bullish for gold. couple of billion dollars exited the market The AMG data showed that a couple of billion dollars exited the market. My pet theory has been that the market needed about $2-3 billion of new money per week to keep the party going. I have felt that if inflows stopped, we would begin a decline, and if there were net outflows, we would have a real disaster. The latter appears to be happening. adding insult to injury: mutual fund investors losing money, they are going to get a tax bill at the end of the year Not only are mutual fund investors losing money, they are going to get a tax bill at the end of the year, adding insult to injury. My guess is they will liquidate their holdings in order to pay the taxes, causing further redemptions and downturns. Think about that $2 billion out and the $3 billion it takes to drive it higher: According to my logic we are $5 billion behind the eight ball. A run on dollar assets and a decline in bonds: things are going to get messy Here we are again, in what looks to be a run on dollar assets and a decline in bonds. (I'm sure the Japanese are taking their money and going home). We have an even bigger potential for a crash because the speculation has lasted longer, with more of the public participating. There is a lot more rocket fuel, not in the form of insurance, but with substantially more dangerous derivative exposure because it is so massive. It seems kind of ironic that Rubin constantly has been haranguing the Japanese for failing to stimulate domestic spending. Now it looks like Japan will have a chance to turn the tables. The joke will be on us since Japan is a creditor country and the U.S. is a net debtor country. If Japan begins to repatriate, remember that they are holding all the cards. I always thought it was very dangerous for Rubin to browbeat the Japanese when ultimately they held the trump card: They could sell their treasury bonds. People have worried for years what would happen if they decided to sell treasuries. The Japanese don't like to upset the apple cart, but if that occurs things are going to get messy. Along those lines, here is a quote from a deputy of Sumitomo Bank, Mr. Kato: "Global deflation is favorable for net creditor countries such as Japan and harmful to net debtor nations such as the U.S. It will raise the demand for cash-like assets in net creditor nations such as JGBs." Mr. Kato knows the score on the door, and his statement may be kind of a shot at Rubin and the boys. This is just another reason why I don't like long-dated paper. Fed rumors fueling bounce?: meetting this weekend to ease 50 basis points... There are going to be bounces along the way and this is one of them. How far it carries remains to be seen. Rumors abound that the Fed is going to meet this weekend and ease 50 basis points. If that is why people were buying stocks, they are liable to be disappointed if it doesn't happen. The parallels between 1929, 1972 and 1987 continue to amaze me, as we have many parts of all those periods coming together now. The combination is going to be a disaster. I continue to be very concerned for the overall health of the equity markets and the underlying economy during the next 15 months.