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Gold/Mining/Energy : Mongolia Gold Resources -- Ignore unavailable to you. Want to Upgrade?

To: d:oug who wrote (3574)	5/29/1999 9:39:00 PM
From: d:oug	Read Replies (1) \| Respond to of 4066

From Gold thread, talk of an Asian currency bloc with gold as backing. To: Bill Murphy From: m.philli Friday, May 28 1999 I have a few questions I would appreciate being cleared up for me if anyone cares to. Are George Bush and Brian Mulroney still on the Board of Directors of Barrick Gold? Who do they represent on the board, a major shareholder? Why would they be interested in sitting on the board of a company in a "dieing industry"? Is there a relationship between their joining the board and Barricks hedging program? What happened to the idea of Asia creating its own regional currency? Was it just thrown out and forgotten forever because U.S. didn't care for it? If it is not forgotten, but is moving forward as a viable idea, how much gold would they require to give it the stability required? How much gold has been freed up by producer forward selling, C.B. selling and loaning out of C.B. GOLD? Are there any similarities in these numbers? Would the creation of a regional currency with gold backing, followed by a large increase in the price of gold have a wealth effect in the Asian economies, bringing money home , making Asia more self sustaining, less dependant on exports to the U.S. consumer who will be tapped out soon anyway? The Asian internal market is big enough without the U.S. it just needs the creation of wealth to get it pumping. Could gold somehow act as the primer? If a regional Asian currency is a go, somewhere down the line, and a large volume of gold would be required as backing to bring it in line with the dollar and euro, would not the knowledge and assistance of the CBs be required? Would the assistance of at least one of the largest gold companies also be required to accomplish this? Is this "big picture" important enough to have all these entities go along. Will Barricks reward be the chance to buy back all their forward sales. How much gold will this require? How about bidding on the Bank of England sale, that should be a start? (just wondering,is any of this possible) To: m.philli From: m.philli May 29 1999 It appears the idea of an Asian currency bloc is still alive. It seems like the thinking is to have it based on the yen. I wonder if it might be possible to use the Singapore Dollar as the official trade currency for Asia. Singapores interest and talents lie as a financial centre. They are as stable as any country in the bloc. Anyone who's ever been in the airport can see it's the hub of the whole region. They have been focusing on computer technology in all their education programs. I would think they are as advanced in their yk2 readiness as any country in the region. There could be a lot of advantages in making use of Singapore and their currency for this purpose. It may be Japan (yen) will not be acceptable to all parties. If the various Asian nations had managed to accumulate 8-10,000 tonnes of the gold that has been flooding the market at low prices, could they not then go with Singapore, converting their gold holdings into Singapore dollars. With the knowledge that this gold would not be returning to market and with not enough physical gold (not already sold by producers )available to cover short positions, gold values would soar. The Singapore dollar would soar along with it, allowing the printing of enough "SING"s to begin its use as the regional currency. As far as the Central Banks go, as to the worry the borrowers cannot repay, what do they care, Banks never want there loans paid off anyway, they just want ever increasing interest rates. The banks except say a 4-5% interest on there gold loans (there happy), producers that haven't covered in time may suffer, but they have the knowledge that once they get past there forward sales, they'll be making a large profit. Long term investors will take care of their share price, plus new production will be brought on line and sold to all those poor buggers paying high interest rates on their gold borrowings from the banks. By the time this has been returned Asia should be humming with consumer demand ready to eat up supply. (their happy enough). Asia has a currency for trade that is controlled by them, backed by gold. Asian American dollar holdings can be exchanged for Sing investments. America may hurt for a while, but it is inevitable, they cannot carry on as consumer of the world forever. They need, the world needs the Asian consumer, with money in his ass pocket. World wide investors know their investment is safe from currency problems and only have to focus on their personal investment viability. Capital comes in, public wealth increases, demand for goods increases, U.S. trade deficit comes down, they have what they want an external market. Can anyone see any possibilities in Singapore Dollars becoming the bloc currency of Asia? Can anyone see any possibility of a gold scenario occurring somewhat like this? To: m.philli From: Bill Murphy May 29 1999 Mike, I wish I had the time to respond completely. Am preparing a presentation for the show in ny and that is taking all my effort. As far as I know they are still on the Board. Regarding the Asian question. Actually, there was a meeting in Macao just recently attended by Japan, Taiwan and China. They are patching up their differences and a new currency is indeed in the works. Will have a gold backing. They are fed up with US arrogance.