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

To: Hawkmoon who wrote (26873)	1/23/1999 5:11:00 PM
From: Mark Bartlett	Respond to of 116871

Ron, Seems to me that one of your main points is that the discipline of the gold standard potentially begets a liquidity problem. The most recent example, of a nearly disasterous liquidity problem, had nothing at all directly to do with gold ... it had to do with ridiculous risk taking, by a hedge fund ..... betting mostly on currency moves. Seems to me we can have liquidity problems without gold even entering the equation. I still believe a compromise is in the best interests of society as a whole .... like many things the pendulum has swung too far one way ... JMHO. MB

To: Hawkmoon who wrote (26873)	1/23/1999 6:21:00 PM
From: donald martin	Read Replies (1) \| Respond to of 116871

Ron, Appreciate what you said about not being able to respond to everything. Your first sentence in a previous post caught my eye. <<When people default on their debts, the money that was "created" through those loans is "destroyed".>> I'm bullish on gold, in part, because of the growth I see in M2/M3. Now, I fault the Fed, ONLY IN PART, for this recent, rapid growth. But in reality, this growth is coming from banks only too willing to lend to shaky entities. And, as this cycle gets long in the tooth, it seems the creditworthiness of newer debtors isn't quite as pristine, and loan officers aren't as careful, as they were at the beginning of the cycle. I bring this up because a gentle recession could bring about a "destruction" of enough of those loans to bring M2/M3 growth down into what I THINK is a low/no inflation band of growth. Thing is, how often do you get the perfect recession?