Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Dutch Central Bank Sale Announcement Imminent? -- Ignore unavailable to you. Want to Upgrade?

To: Crimson Ghost who wrote (4369)	3/16/1999 4:56:00 PM
From: sea_urchin	Read Replies (2) \| Respond to of 81056

George : That's interesting. I thought the gas/oil gearing would be more severe. So, if a few dollars increase in the oil price causes only a few cents increase in the gasoline price, then your government has nothing to lose in encouraging an increase in the oil price in order to help the oil companies and the OPEC countries. There may also be political reasons to do so. I frequently read these opinions about the financial establishment fighting a gold price increase but I truly can't see why they would waste their time to do so. The only reason would be to create the impression that there is diminishing or no inflation in the US. Makes no sense to do so, particularly when there isn't much inflation? Interest rates are low and the US economy is doing well (the best in the world, in fact). Who would be kidding, who? Who would benefit by a skewed figure for inflation? There are other inflation indicators, besides gold, and any attempt to manipulate the gold price for such a purpose would immediately be exposed by a change in the ratio of the gold price to other indicators. Compared to the CRB, in fact, the gold price is actually quite firm. In other words, if there is price manipulation, it is upwards ! Also, on my own long term regression models, compared to the various currencies, the gold price is actually pretty neutral at present ie. not particularly cheap or expensive. So, I can't find any objective evidence that there has been, or is, price manipulation of any consequence. Truth is, as far as I am concerned, that the dollar was, and still is, too strong. It is dollar, and the dollar alone, which smashed up the gold price. I mentioned this to you when we first spoke, in 1966, and my opinion hasn't changed. The Japanese economy is still lousy and the latest crisis of confidence in the Euro won't help matters either. So, until there is a real improvement in these economies and currencies, the gold price will remain depressed. QED