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

To: Zardoz who wrote (22790)	11/10/1998 12:10:00 AM
From: marcos	Read Replies (1) \| Respond to of 116782

I see their attitude toward real reserves vs paper reserves as just another symptom of the same disease that made them spew the 'We can borrow and spend all we want because after all we're borrowing it from ourselves' argument. It's all crap. Funny money. Ain't no free lunch. One of the very few legitimate activities for a government is the maintenance of a meaningfully stable currency to facilitate the commerce of its citizens both within and without the borders. You can't do that loading up on other people's paper, not over the long term. Yes, I know what you're going to say - they want a trade-weighted currency basket so they can diddle with the exchange rate, 'adjusting' it, and of course you're right. They prefer paper to gold because gold would inhibit their manipulations. And that is precisely why I like it. Not that a gold standard will happen until all the paper goes up in a ball of fire, so in the meantime we look for practical pragmatic step-at-a-time solutions. Well, beginning a regular process of exchanging a portion of that US paper for bullion would go a long way toward reviving the key mining industry. Imho the leverage power the BoC possess in their ability to give moral support to the PoG could accomplish gains far beyond its cost in paper dollars. Certainly their gains through selling cheap have been insignificant in relation to the cost. 19mil dollars - hah! roughly four bits per capita. Save up for four years and you can buy a glass of beer - if it doesn't go up. Which it will. Even just announce that all sales are done, period, and that gold miners will henceforth pay federal taxes in bullion. No cash outlay, and think of the impact. We may be only a bare few millions of norteños up here freezin our butts off, but I do believe we have an influence that outweighs our numbers, and we could and should set a better example in fiscal and monetary responsibility. We did in war and peacekeeping and diplomacy. Your argument that a strong dollar would harm exporters is one with which I am intimately familiar, my day job lives or dies on the price of logs, and it's currently comatose. But this fudging and diddling around with paper is not a proper function of the state, imho. They should do their job and do it better, and leave me to do mine. Forestry has always been a feast or famine business and always will be. Anyway, they're not doing me a whole lot of good when they help to tank my gold stocks. Why bullion in place of producers for the investor? that I don't understand. The devaluation I see coming is that of the US$, as it starts to come back home.

To: Zardoz who wrote (22790)	11/10/1998 6:25:00 AM
From: Bobby Yellin	Read Replies (1) \| Respond to of 116782

excellent post.. It also reveals that something might be intrinsically wrong..the governments of the world seem to be focussed on exporting their way into having stable economies rather than relying on themselves. As a result their policies seem implicitly to create vaste power and control in multinationals and kill a lot of small companies that probably made up backbone of their economies previously..The multinationals have deep deep pockets..don't care about currencies and can play the delaying game by keeping prices low enough long enough to destroy small companies. Still think though when looking back in history,this period of time will be viewed as the biggest time for corporate welfare. The western governments' policies all seem to be favor the multinational conglomerates and financial types. I see the food prices in my supermarkets so high and I read how commodities are so low. I mentioned that to a woman in pasting,and she said "well what can we do?" Just heard that Cargill is trying to buy Continental Grains..and forgot the percentage of what Cargil already controls in the world.. AJC talks about the US as a supertanker that can't change course easily once path is in place. Is she implying that it will eventually fall off the earth?