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Gold/Mining/Energy : Bema(Bgo) and Arizona Star -- Ignore unavailable to you. Want to Upgrade?

To: Alex Raytselsky who wrote (9804)	1/21/1999 6:58:00 PM
From: donald martin	Read Replies (1) \| Respond to of 10482

Continuing OT. (And my apologies to the rest of the thread.) The US can stand idly by while Brazil and the Latin Americans devalue. They don't represent much of a competitive threat to the US. However, if the chinese take it upon themselves to devalue, don't look to Rubin/Greenspan to stand idly by. If the Chinese pulled a stunt like that, you might see Fed/discount rates drop a point or more...a devaluation in everything but name only.

To: Alex Raytselsky who wrote (9804)	1/21/1999 7:04:00 PM
From: John Soileau	Read Replies (1) \| Respond to of 10482

That would be an interesting test: if the yuan devalues, WHAT will gold do? China has a good bit of external debt that would instantly get more expensive, and hey, maybe they will announce that they won't pay the running-dog capitalists according to the debt's original terms. Financial markets, including ours, will NOT be amused. China has I think more than 100 bil dollars in reserve, but would they run through this (like Brazil did for a while) defending their currency, or just let the yuan get trashed, like the real? And if China does this, won't Hong Kong go to hell with them? And if all that happens, will there be an exodus into nice safe Bema-produced gold? Or will cable subscriptions jump as depressed, impoverished investors stay at home?! Enquiring minds need to know. Regards John