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

To: Zardoz who wrote (25626)	1/7/1999 8:37:00 PM
From: goldsnow	Read Replies (2) \| Respond to of 117273

Hutch do you still think that dollar will rebound? Business: The Economy Brazil default sparks sell-off Cardoso's victory could prove elusive Brazil's attempt at economic reform ran into a political crisis when one of its biggest states declared a default on its debts to the Federal government. Shares on the Brazilian stock market, the Bovespa, fell sharply as a result. The default threatens to derail the plan agreed by the International Monetary Fund (IMF) and the Cardoso government to stabilise the currency and curb the budget deficit. Under the deal, agreed in November but still not fully implemented, the IMF was to make available up to $40bn in support for the Brazilian currency, the real, in return for a commitment by the government to reduce the budget deficit from over 7% of GDP. The plan was put into place after investors, fearing the collapse of the currency, began to pull money out of Brazil Political rivals The default by the state of Minas Gerais was ordered by Governor Itamar Franco, a former president of Brazil who is a political opponent of Mr Cardoso. He said on Wednesday that the state would cease payments for 90 days on $15bn of state debt owed to the Federal government, saying he did not have the funds to pay. But it was believed to be a bit of political grand-standing by Franco, who has been jealous of Mr Cardoso's success in stabilising the economy. Mr Cardoso was finance minister in the Franco government. Cardoso faces a difficult task in cutting the budget deficit without plunging Brazil into a full-scale recession, and some analysts interpreted the move by Minas Gerais as an attempt to shift the blame for any job cuts to the Federal government. "The government will not accept impositions, it will upheld the law," commented Joao Pimeneta da Vega, the communications minister and a close ally of Mr Cardoso. But Mr Franco plans to rally other opposition governors at a meeting next week to endorse his strategy. Brazil has already renegotiated the debt of 20 of its 27 states, offering low interest rates and long repayment terms, in an attempt to reform their finances. Brazil, with the world's eighth largest economy, dominates Latin America,and is a very important market for US exports. If the political crisis hits international confidence, it could become the first victim of the world financial turmoil in the New Year. news.bbc.co.uk

To: Zardoz who wrote (25626)	1/7/1999 9:13:00 PM
From: Lucretius	Read Replies (2) \| Respond to of 117273

Nope, I haven't sold any of the gold stocks that I have bought. Liekwise, I haven't chased them when they've run either. Got lucky and bought some down around 50 in the XAU when gold co's were being toosed out the door like yesterday's garbage. Bought some more a little higher and bought some more about a month ago after it had sold off some. I'm not in this for a trade, kiddo. as for how falling s-t rates is bullish for gold... competition from riskless government s-t paper is less and less as rates fall thus pushing money into alternate investments. One of these is gold. fairly simple concept actually and fairly well known. This reconfirms my belief that if you actually are short these co's or the futures, you really need to go and do some more reading on the subject. I repeatedly see posts from you that simply make no sense, and you have failed to grasp this fairly simple connection between S-T interest rates and gold. Being a bear on gold is fine (maybe even right) but you need to be more informed about what you are talking about. BTW- if you are actually short, I think you are in for a shocker.

To: Zardoz who wrote (25626)	1/7/1999 11:33:00 PM
From: Jim McMannis	Read Replies (1) \| Respond to of 117273

RE:"you do realize of course that all of these world-wide S-T interest rate cuts are VERY bullish for the yellow metal." Why? What makes you say that? Where's your proof? How can you draw that conclusion?" ----- Rates cuts are very bullish for gold but it depends where in the interest rate cycle they occur. This is not hard to prove. Unfortunately, the business cycle has been repealed for the last few years. Jim