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Politics : Dutch Central Bank Sale Announcement Imminent? -- Ignore unavailable to you. Want to Upgrade?

To: jgibbs who wrote (1570)	10/14/1998 11:11:00 AM
From: sea_urchin	Respond to of 81296

JG : Many thanks for a most interesting article. I am now convinced that the price of gold is THE indicator that the Fed, and others, will use when they are "tuning" the money supply etc. So, quite apart from gold being a barbarous relic, it is actually an essential component in the financial system, being the only reliable indicator of what the monetary authorities are attempting to do. Or, what they have done. In other words, considering the essential monetary variables which are all interrelated, of money supply/asset destruction, interest rate and inflation/deflation --- if the price of gold is at a particular, agreed upon, level it would indicate that "God's in his Heaven and all's right with the world". And, that the particular economy is running at an inflationary, neutral or deflationary state, as required.