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

To: Bobby Yellin who wrote (4409)	3/17/1999 8:31:00 AM
From: Hawkmoon	Read Replies (1) \| Respond to of 81084

..and Allen bought the fed sometime back but didn't want to tell anybody until it was year2000 compliant..they didn't want to embarrass themselves... Morgy, my comment on GNET was solely in response to the above comment by yourself. I was not bringing up "bubble stocks" as a comparison to gold anymore than you were comparing Paul Allen to Baron Von Rothschild. Sure some folks became enraged over LTCM. And personally, had it not been for the significant consequences for the global financial system, they would have let it go belly up as a lesson. But it doesn't make sense to commit familial suicide because one of the kids came close to putting you into bankruptcy. Had we been under a gold standard during the LTCM debacle or Asian crisis for that matter, I really suggest that we would currently be in the depths of a '30's style depression. Gold just does not permit the ability to counter deflation. And gold never prevented bank runs in the past. But I agree that E-commerce is deflationary. That means dollars have more purchasing power and that the Fed has to take action to counteract a depression in prices and maintain at least a semblance of economic equilibrium as we transition to the new model. Low prices are not good for precious metals and commodities. So no, you can't have deflation and high precious metals prices too. It's not how things work with gold. Gold can't be both a hedge against inflation, its traditional role, and deflation. The only hedge gold provides in deflation is insurance against a complete and utter blow-up of the financial system through war or cyber-attack. But even you have to have it in your possession. Regards, Ron