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

To: PaulM who wrote (26567)	1/20/1999 8:49:00 PM
From: Hawkmoon	Read Replies (4) \| Respond to of 116764

Paul, I was listening to Greenspan's testimony via CSPAN radio this morning. I did not get the impression that he stated what that headline claims. He did state that it would not be especially harmful to have another currency, but that he believed the Euro's impact on the dollar would be modest. What is currently affecting the US is also affecting the Europeans. Where we are concerned about Social Security, the Europeans are VERY worried about the unfunded liabilities their welfare system has created. (and once an entitlement is established, we all know how politically costly it is to reduce or eliminate it). The Financial Times today quoted that the ECB stands ready to lower interest rates again in the event that economic conditions in Europe worsen. So the argument that the Euro will supercede the Dollar may be misfounded given the uncertainties of continued economic problems in Europe, the Russian/Y2K situation, and the relative newness of a currency that exists only on computers and credit card systems. Again, it may mean they become protectionist, but then so will we.. and the world will suffer for it. Just as the world economy will suffer should the gold market "carry-trades" be unwound in a coercive manner as Bill Murphy is advocating (and I don't blame him for doing so). We all saw what almost ocurred with LTCM and how the markets reacted, both equities AND bonds. Global credit crunches will prevail where investors will be unwilling to accept anything but gov't debts as a basis for risk. The economy will suddenly and sharply contract worldwide, and millions of people will be thrown out of work. And in the end, the world gov'ts will confiscate your gold, whether it be bullion or coin. Just like the gov't has the ability to declare paper currency worthless and make you exchange it for new legal tender. And the coercive power that will be utilized to undertake that confiscation will require unprecedented power. It may create the gov't system that many of you fear, the NWO, backed by people begging for anyone to save them from global financial and political chaos. Think about it a bit and tell me if what I'm saying might be possible. We were on the edge of an financial abyss last August. People were scared. People, wisely or not, plowing their money into IRAs and 401K's hoping to have a decent and somewhat secure retirement. They almost lost it last August. Why is it that goldbugs think pushing the global financial system to the point of breakdown or beyond is good?? We know there isn't enough gold available to back a currency able to handle a global financial system. Especially when gold has no more intrinsic value than any other commodity metal used in industry. I just don't see the logic of forcing the hand of Central Bankers of the world who hold the ultimate power of finance in this world, and for all of their glaring mistakes, recklessness, and pompousity, have done a pretty good job of building the post-WW2 economy. If they hadn't I hardly think I would now have the technology that permits me to post this for anyone in the world to see. Just a few thoughts I had after reading Bill M's very articulate and compelling article. Goldbugs are thinking they are about to get to play in the sandbox... but fail to realize that the CB's can also pack up their toys and go home (with the permission of sovereign gov'ts who feel the threat as well). Regards, Ron