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

To: long-gone who wrote (30646)	3/25/1999 2:26:00 PM
From: Hawkmoon	Read Replies (2) \| Respond to of 116972

& Y2k through extra reserves which would be short term inflationary. I believe it would be intermediate to long-term inflationary. But more than that, Fed Governor Gramley's comment indicates that they will do whatever it takes to boost the banking sectors liquidity in anticipation of depositor withdrawals of "mattress money". Personally, I would advocate that they sell gold and add liquidity to the gold sector so people would be more inclined to convert dollars to gold than to cash. They is only a limited quantity of cash in the systems and there is far more gold. I would rather the Fed not tanks the price of gold, but help to stabilize and increased demand by making physical gold reserves available. And after Y2K, the Fed could then buy this gold back from depositors who choose to reconvert to dollar denominated assets. Regards, Ron

To: long-gone who wrote (30646)	3/25/1999 3:46:00 PM
From: Ken Benes	Read Replies (1) \| Respond to of 116972

A dose of inflation would be a normal expectation of excessive money creation, however, we are in unusual times. As long as commodity prices remain depressed and overcapacity exists in manufacturing, prices will remain contained. We have become the market of last resort for much of the world and the safe haven for the surplus cash generated by our trading partner with favorable trading surpluses. Whether one agrees with the current military effort in Yugoslavia or not, it is very i mpressive watching the sophisticated array of US armaments pounding the serbs under the cover of darkness. Never has one nation so dominated the world, militarily, economically, and culturally. Everybody wants to be on the side of a winner and they are casting their allegiance with their money. It is very difficult to envision an increase in prices with the current scenario. Something dramatic would have to occur to cause foreign countries to repatriate their money and demand America to pay its way. With out this demand, money and goods will continue to flood into our markets and smother any hint of inflation. Ken