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

To: Rarebird who wrote (27402)	1/31/1999 11:36:00 AM
From: Hawkmoon	Read Replies (1) \| Respond to of 116762

Rarebird, Am I supposed to give you more esteem because you own a learning center?? I don't care what you do. I care about what you say. I, frankly, am disappointed in you. I expected better manners from someone with a doctorate degree. Myself?? I don't have one. I don't even have a Masters. And that's the problem here. I am basing my arguments on their own logic. What I do, where I live, who I have coffee with, who's private conversation I overhear, is my own business, just as your personal life is yours. I don't care what people do. I care only about the logic and substance of their arguments. AG himself could be out here, "incognito", and I would address my points to him just as I do to others. Debate the argument on its merits and quit trying to distract from what is relevant and pertinent. Logic falls under the discipline of philosophy as well and you have a doctorate in that. The logic inherent in a battle of confidence between the dollar and Gold could find an analogy in a battle between the dollar and Swiss Franc. Now the Swiss are a great people. But their GDP nowhwere approaches that of the US, Europe, Japan, or Brazil. However, if I'm not mistaken they still have some semblance of a prima-facie gold standard there and would likely benefit from a rise in gold. Now if the Swiss Franc goes up in value due solely to the rise in the price of gold, is this a proper reflection of the inherent worth of its economy or unemployment rate? Who has a larger GDP, and technical prowess, as well as the military, and political power to protect their interests here or abroad? Well if gold ran up against the dollar, then I guess that would mean the Swiss Economy was performing better than the US, since the Franc would appreciate against the dollar regardless of the acutality of that fact. Now does that make sense? It doesn't have a logical basis to support it other than the Swiss Franc is backed by gold. Logic dictates that gold will gain ground when the perception of its worth is greater than the perception of the worth of the current global reserve currency, the dollar. And if these CB's come out with an SDR linking all the major currencies to one peg, you can bet that gold is going lower. Think about it... How do you back a global currency with gold to any representative percentage?? How does a rare metal become the backing for a global money supply?? (And I don't necessarily back a global currency, but see it as inevitable). I don't know when gold will appreciate, if ever, against the dollar. There is so much at stake economically, that gold may be sacrificed (read confiscated as a strategic metal), and placed under gov't control. Nothing destroys the inherent value of something better than putting it under full gov't control, and I expect gold to be no different in that event. There's a lot of logic in what I'm saying Rarebird, you're just so stuck on your own preconceived notions that you can't see the variables that impact your views on gold. I want to discuss it all. There is quite a bit of germane logic or reflexive reality, in most opinion's voiced out here. Taking for example, the view of gold as a storehouse of value. I accept the reality of this. But I still don't see the logic where the rarity and durability of a shiny yelloy metal can compete against the economic backing of an entire country's productive output. But I certainly enjoy reading people's opinion and debating the merits of those perspectives. Here's an interesting point. Our GDP is some $7 Trillion per year. Our national debt is some $5 Trillion, or less than one year's GDP. Some have hypothesized that our total debt (off-book), is $17 trillion, still 2 1/2 times our GDP. Now how many people out there hold more debt than their annual income? But I certainly don't advocate our gov't should continually spend more than it takes in. I just want to place it more in perspective. It we hold little debt, then we have more leeway to react to economic problems in our economy as well as the global one. Regards, Ron