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

To: Alex who wrote (25791)	1/10/1999 1:51:00 PM
From: John Hunt	Read Replies (1) \| Respond to of 116845

Inflation - The Choice Of Governments Worldwide << As reported in the December 18 edition of Grant's Interest Rate Observer, the deputy governor of the Swedish central bank recently told a press conference that a just completed reduction in interest rates would fail to bring the rate of rise in the CPI back up to the bank's target of 2% (as of November, the inflation rate was running at minus 0.5%). This is a rare admission by a central banker of something which has been clear since the connection between the financial and physical worlds was severed in 1971 with the removal of any remaining official links between the US dollar and gold, that is, that governments prefer inflation. -- cont'd -- >> gold-eagle.com

To: Alex who wrote (25791)	1/10/1999 1:52:00 PM
From: PaulM	Respond to of 116845

"Christian Noyer said...the ECB did not plan to either buy or sell gold..." These article were probably posted but I think everything is coming together with no one noticing. biz.yahoo.com Euroland Gold biz.yahoo.com 1. In a world where gold doesn't matter, the country with the World's reserve currency--the U.S.--also happens to be the country that claims the most gold as percentage of external reserves. 2. Since the Belgian sale last year, there have been no reports of European CB sales. 3. The Swiss do plan to sell, but--and now his makes sense--they are outisde the Euro zone. They will sell for EUROS, not dollars, as Euro fiat reaps the benefits once reserved for the dollar. 4. Despite the 15% we had heard, Christian Noyer recently tell us otherwise. In fact, the Euro zone has more than 30% gold reserves, with no intention of selling. 5. One way for Euroland to damage the competing reserve currency is to allow the dollar price of gold to freely rise. The gold carry trade will now likley go the way of the yen carry trade. I think gold will become volatile and ultimately rise, perhaps even before the Euro/dollar exchange rate shows that dollar supremacy is challenged. Higher interest rates and inflation--dead ahead.