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ARCHIVED DISCUSSION FROM 8/16/2005 All times are U.S. Mountain Time (Yesterday's Discussion.) mikal (8/16/05; 20:44:53MT - usagold.com msg#: 135045) Power geopolitics and trade http://www.csmonitor.com/2005/0817/p01s04-woap.html Russia and China Meld Muscle For War Games - Fred Weir - August 17, 2005Russia and China meld muscle for war games | csmonitor.com - Fred Weir - August 17, 2005"Shared concerns cause nations to push aside differences"This terse assessment of China/Russia relationship throws a spotlight on comparative power in Asia and Russian strength. Russia appears remarkably strong in relation to China and thus well poised to raise offtake in gold markets as many expect. Additionally, the various inter-Asian accords, completed and in planning, obviate the need for U.S. dollars to a greater extent than in the past. And note the mention of India, Pakistan and Mongiolia in the text. By itself this would justify the greatest possible investment exposure to gold for many people. And it certainly does compel many more when one or more of countless other fundamentals are factored in. Goldilox (8/16/05; 20:01:58MT - usagold.com msg#: 135044) Fun with Filmography @ $Bill,That can safely be said about any Hollywood production. That's why it's called the "city of dreams".Was it "Saving Private Ryan" that was pulled from the networks recently for being too "graphic"? That was an interesting screenplay. They killed off an entire platoon to find one kid to send home early?We'll know we're really off target if someone makes a movie about gold price manipulation. Goldilox (8/16/05; 19:49:02MT - usagold.com msg#: 135043) Kool-aid @My buddy White Hills,Never Kool-aid, I want caffeine in my liquids. From now on, when I find evidence the NeoCons are screwing us at the bank, polls, and poisoning our soldiers with Uranium dust, I'll ignore all the parts that don't have $ signs in them. LOL White Hills (8/16/05; 19:33:28MT - usagold.com msg#: 135042) Goldilox Hey guy, you have to quit drinking that kool-aid. Try sticking to economics you make more sense,the rest is just ranting. White Hills PRITCHO (8/16/05; 19:28:22MT - usagold.com msg#: 135041) @Topaz - -Re your 017 - - - :) Well done mate -I spotted the gist ss soon as I saw the nature of the message and the DELIBERATE mistake with the spelling "My Freind". I should have covered my A$$ by stating that there were exceptions - - thanks to luck I haven't had top learn Englih as a 2nd language!It's only 9.21 am here in Perth & so I've only got as far as your post.Wonder if others spotted the hidden agenda? Very funny - - I've still got a grin on. Dollar Bill (8/16/05; 19:16:55MT - usagold.com msg#: 135040) .,. TC, when you posted, I read the post like it was partially aimed at me. Maybe that indicates how much of a bill centric world I like to live in, but it was hitting lots of points that I was interested in. The knee deep, and the transitions and the grounding in gold avoidance.Glox, I suppose we will have to wait for an Oliver Stone movie. If that farenhiet movie guy makes the film, well then I will assume there are lies in it. TownCrier (8/16/05; 16:38:03MT - usagold.com msg#: 135039) Goldilox, I was responding to this post,,, the one you directed to me _________Goldilox (8/16/05; 09:27:55MT - usagold.com msg#: 135026)Reserve remarks@TC,Your prose renders the whole deal all so inocuous. Perhaps it is perdition rather than convenience that forces participants to "play along" in the first place.Countries who have chosen NOT TO have seen every pressure from FOREX currency runs, tsunami (can't prove this one, but there is grounds for suspicion) to outright invasion - hardly the tools of "convenience"....[and etc..]___________R. Goldilox (8/16/05; 16:33:47MT - usagold.com msg#: 135038) Physics and gold @ TC,I apologize if one of my posts offended you. Let me attempt to clarify my intentions.My comment on YOUR post was that it seemed to disregard some basic observations of documented banking behavior in favor of "simplicity." IMHO, this omits factors important to derivation of a valid market equation.The post you seem to have found repugnant was a response to $Bill and Pritcho who seemed specifically interested in the investigations into that topic. The US$ is losing world confidence rapidly, and the "unexplained loss" of Trillions from two separate budgetary entities can't bolster that confidence in any way. To suggest that massive airline puts and budgetary scandals both surfacing on 9/10 are unrelated to the events of 9/11 may not be convictable evidence, but it seems too coincidental to completely ignore in the "loss of confidence" algorithm.If we oversimplify the "world financial algorithm" and pretend that it has no political component, we disregard many a potential for strong external influences. We seem to celebrate GATA's expose of gold market manipulation, but avoid discussion of similar exposition in other markets, assuming, perhaps falsely, that they are "unrelated'.OK, here's a real-life gold related example.Gold rose by $3.60 today, while the US Dollar, it's primary driver, remained pretty flat, as did gold equities. This violates the premise by most financial pundits that gold and the dollar are "joined at the hip". From the deeper political investigations of Another/FOA, we who have paid attention have good evidence that underlying political currents are beginning to divert gold from its "dollar inverse" tether. I don't think "technical analysis" offers a ready explaination for this, but world events offer some very interesting hypotheses. USAGOLD Daily Market Report (8/16/05; 16:17:26MT - usagold.com msg#: 135037) Page Update! http://www.usagold.com/DailyQuotes.htmlThe Daily Gold Market Report has been updated.If you are considering investments in gold we invite you to request our free introductory information packet detailing the products and services offered by USAGOLD ~ Centennial Precious Metals. We welcome your inquiry and look forward to working with you.Tuesday Market ExcerptsAugust 16 (from MarketWatch) -- Gold futures rose almost $4 an ounce Tuesday, recovering everything they lost in the previous session as high oil prices and a varied outlook on the U.S. dollar fueled growth in demand for the yellow metal."Despite an onslaught of suspicious selling periods, seasonally-weak time frame and a supposed 'strong U.S. dollar', gold has managed to not only build a formable base, but [it] appears $500 an ounce is a question of when, not if," said Peter Grandich, editor of the Grandich Letter.December gold closed at $451.50, up $3.90, or 0.9%, after having lost $3.80 on Monday."Gold is benefiting from a dramatically improved technical picture," said Brien Lundin, editor of Gold Newsletter."In addition, windfall oil profits have apparently boosted physical gold demand from the Middle East, and the onset of the buying season in India is making demand from this region an increasingly important factor," he said.(from DowJones) -- Grandich commented that gold remains in a major uptrend on the charts. On a spot basis, significant bottoms in the metal over the last six months have tended to be higher than the previous ones, he pointed out."It's been able to do this - up until recently - in the face of a strong dollar and a strong equity market," said Grandich of gold's gains."More and more people have been recognizing the strength of this move."There are reports of "extremely strong" physical demand, Grandich said. And, he added, this is occurring during the summer, when physical demand historically has been soft."That means as we get into the strong season, which is September through November for the holidays, we could expect even more," he commented.---(see url for full news, 24-hr newswire, market quotes)--- USAGOLD / Centennial Precious Metals, Inc. (8/16/05; 15:23:32MT - usagold.com msg#: 135036) Especially designed for those who are taking their first step... http://www.usagold.com/gold/special/starter.html Topaz (8/16/05; 14:53:19MT - usagold.com msg#: 135035) alt diversion? http://www.futuresource.com/charts/charts.jsp?s=GC&o=100/DX&a=D&z=610x300&d=LOW&b=LINE&st= The aforementioned Comex Delivery pdf should indicate a bit of covering today. How much and more importantly, how much left to clear the decks on August, will determine where PoG is headed next.The diversion in alt/Gold is a healthy reminder we're tip-toeing outa Kansas kiddies! Topaz (8/16/05; 14:30:30MT - usagold.com msg#: 135034) @Survivor. The sentence was meant more as a rebuttal of the "i before e" Rule than a profound observation Sir S, but point taken ;-)Todays action "almost" put paid to the $6 Rule eh?Gremlins are also at work at Nymex with the Daily Comex Delivery pdf server "down". Hmmm! hope that gets fixed shortly, I kinda like to watch the system unravel! TownCrier (8/16/05; 13:18:43MT - usagold.com msg#: 135033) Goldilox, a word on my 'innocuous' presentation Had this discussion been instead something with regard to a 'harder' science, such as physics, I am sure that in speaking of gravity, for example, I would have found it equally expedient to spare the listener unnecessary rhetoric about a particular set of kinsmen regarding their adverse attitude about aided or un-aided flight by man.By keeping it 'innocuous', I achieve better odds at highlighting the fundamental guiding 'physics' which resides within the overarching political complexities of our social fabric.Were I to abandon that posting guideline, I'm sure my posts would rapidly devolve into the appearance of so much whining and worthless ranting of political rhetoric as can be found easily elsewhere on the net.If I can give you innocuous presentations of the underlying mechanics, the plain cake so to speak, then it is most utilitarian to you and to everyone else to take it as a starting point, and to bury it under as much fudgey frosting as you like, to then determine whether the underlying principle and your political perception or preference can coexist; or if not, then the pathway to reconciliation is at least within grasp -- scrape off the fudge and retry.R. DoubleEagle (8/16/05; 11:43:36MT - usagold.com msg#: 135031) Up into the close I'm almost cautiously optimistic. I'd like to see silver come along too.-DoubleEagle Goldilox (8/16/05; 11:38:54MT - usagold.com msg#: 135030) Anti-dollarization @968,In the past, when countries failed to fall into line with US dollar agenda, the Forex market promptly ate their lunch - see Asian contagion, Argentina, Brazil, Mexico, ad nauseum.It's interesting that the foreign banks and governments seem to be approaching this current effort at dollar deflation en masse, desperately seeking "safety in numbers".Is there a concerted effort to battle US$ hegemony, or are we witnessing a manpulation directed from within the hallowed halls of the Beltway? Goldilox (8/16/05; 11:32:26MT - usagold.com msg#: 135029) Smoking Gun - "Who's wagging whom?" http://www.rense.com/general67/who.htm snip:System Planning Corporation designs, manufactures and distributes highly sophisticated technology that enables an operator to fly by remote control as many as eight different airborne vehicles at the same time from one position either on the ground or airborne. For those looking for an extraordinarily interesting hobby, please see photos and specs of this hardware (about the size of a small refrigerator) at www.sysplan.com/Radar/CTS. Just be sure your mom doesn't catch you causing havoc with the airlines. And, of course, I would be remiss not to mention that Rabbi Zakheim just happened to be the chief financial officer of the Pentagon one ordinary day when a news conference was held in New York City. On September 10, 2001, Secretary of Defense Donald Rumsfeld held a press conference to disclose that over $2 TRILLION in Pentagon funds could not be accounted for. Rumsfeld stated: "According to some estimates we cannot track $2.3 trillion in transactions." Such a disclosure normally would have sparked a huge scandal. However, the commencement of the attack on New York City and Washington in the morning would assure that the story remained buried. To the trillions already missing from the coffers, an obedient Congress terrorized by anthrax attacks would add billions more in appropriations to fight the War on Terror. The Comptroller of the Pentagon at the time of the attack was Dov Zakheim, who was appointed in May 2001. Before becoming the Pentagon's money manager, he was an executive at System Planning Corporation, a defense contractor specializing in electronic warfare technologies including remote-controlled aircraft systems. Zakheim is a member of the Project for a New American Century and participated in the creation of its 2000 position paper Rebuilding America's Defenses, which called for "a New Pearl Harbor." -GoldiloxEver since a first class flight on one of the airlines involved in 911 terror actions, I have been interested in the "remote control systems" installed on every late model commercial jet (done in 1998, according to company pilot seated next to me). The announcement of $2.3 TRILLION missing from the Pentagon budgets closely mirrors the missing HUD funds highlighted by Catherine Austin Fitts of the Solari Network, for which she lost her job and suffered fifteen years of punative litigation. In this world where arms sales dominate "foreign policy", smoking guns pop up like prairie dogs in a child's hammer toy.How does this relate to global finance and gold suppression? Global market domination is a top priority to those who play these highest level of "manipulation games". Missing the inter-relationships is akin to diagnosing illnesses strictly from a single piece of symptomatic data. 968 (8/16/05; 10:49:19MT - usagold.com msg#: 135028) Caleb M Fundanga: Monetary policy issues and the process of foreign payments http://www.bis.org/review/r050815d.pdf Presentation by Dr Caleb M Fundanga, Governor of the Bank of Zambia, at the Zambian Heads of Missions Briefing Seminar, Lusaka, 19 July 2005.SNIP :"In addition, the containment of growth in money supply has contributed to this outcome. Furthermore, the anti-dollarisation campaign that the Bank of Zambia waged some two and half years ago has had an equally important role to play in the observed relative stability of the kwacha against major currencies."----------------------------------------------------------------------------------------------------------------------Anti-dollarisation campaign ??? Goldilox (8/16/05; 09:31:52MT - usagold.com msg#: 135027) Fiddle-dee-dee @ Survivor,Not to let GWB off the hook in any way, the two latest pork laden bills suggest that Congress is in no way excused from also fiddling in the fire.As Mammy explained in "Gone with the Wind","It ain't fittin', it just ain't fittin'!" Goldilox (8/16/05; 09:27:55MT - usagold.com msg#: 135026) Reserve remarks @TC,Your prose renders the whole deal all so inocuous. Perhaps it is perdition rather than convenience that forces participants to "play along" in the first place.Countries who have chosen NOT TO have seen every pressure from FOREX currency runs, tsunami (can't prove this one, but there is grounds for suspicion) to outright invasion - hardly the tools of "convenience".Does a shopkeeper "participate" in an extortion swindle out of "convenience" or "survival"?The fact that he adapts to the conditions are perhaps more survival than convenience.I think Japan makes an interesting study in this regard, in that its thriving export economy grew from the ashes of war rubble. Once cheaper labor markets were developed for the trinkets and gadgets, it experienced a national deflation, clinging to its superiority in automotive and robotics to survive. It would also have not survived without an incredibly frugal savings rate, a well noted distinction from the country supplying the world reserve currency. Survivor (8/16/05; 09:22:42MT - usagold.com msg#: 135025) @ Topaz, msg#: 135017 You said: "At the height of foreign unrest, GWB chooses to seize the opportunity to persue leisure"Hard to ignore the analog with "Rome burns while Nero fiddles". - Survivor :) TownCrier (8/16/05; 09:11:44MT - usagold.com msg#: 135024) Buongiorno!, see last Tuesday's post, TC (08/09/05; 14:44MT msg#: 134774) http://www.usagold.com/cpmforum/archives/920058/default.html Archive day is linked, scroll to subject line "CBOT aims to avoid repeat of June 10-year expiry woes"Of note is the remark, "Separately, the Treasury is considering setting up a special lending facility to address liquidity problems."Cheers.R. Goldilox (8/16/05; 09:09:47MT - usagold.com msg#: 135023) Gold Edges Up http://www.marketwatch.com/news/story.asp?siteid=mktw&dist=moreover&guid={21AEBC07-55DA-4A37-BA57-6A32BA8DB94C} snip:At the same time, gold futures edged higher as mixed trading in the U.S. dollar provided little direction for the precious metal."We've seen a nearly $10 decline in the December gold contract since the intraday day high of 455.30 on Aug. 12," noted Doelling."The commodity funds holding long positions are starting to get nervous and, if the market closes below $445, they'll exit the market, flooding the trading floor with sell orders," he said.If that happens, prices "would likely push down to major support at $436," Doelling said.At last check, December gold traded at $448.20 an ounce on the New York Mercantile Exchange, up 70 cents, after having lost nearly $4 on Monday.Rounding out the early Nymex action, silver for September delivery traded at $7.025 an ounce, up 6 cents, while October platinum fell $11.20 to $894 an ounce and September palladium traded at $185.50 an ounce, down 75 cents.Tracking inventories, copper supplies were down 302 short tons at 8,085 short tons as of late Monday, according to Nymex. Silver stocks were up 152,682 troy ounces at 111.2 million troy ounces, while gold inventories stood at 5.90 million troy ounces, down 482 troy ounces from the previous session. TownCrier (8/16/05; 08:54:29MT - usagold.com msg#: 135022) Goldilox, a rethink of your opening remarks (msg#: 135014) If the government of issue (of the currency in question) does not object to its usage as predominant int'l reserve, it is surely due primarily to the benefits that accrue to them on the basis of a cheaper borrowing environment -- support for its bond market and also the "uncashed check" phenomenon.The oversimplified reality is that our monetary system has reached a level of sophistication that the state-of-the-art has no need for the ponderously inequitable and inegalitarian reserve structure built upon the debt and currency issuance of a singularly privileged entity in that regard (i.e., a structurally-supported borrowing facility).The less simplified tale, however, recognizes that "state-of-the-art" comes along as an evolutionary/developmental/transitionary process, and thus we are usually stumbling forward to the best of our ability while knee-deep in all the entanglements of yesterday's customs and habits.And just as surely as the country of issue (of the reserve currency) is reluctant to change, to give up its unique privileges, so to are some of the non-reserve countries reluctant to risk changing the particular benefits that they have been able to eke out of the present system. For example, many non-reserve countries have used their support of the dollar for a weak local currency in order to enhance present economic development around their export sector -- especially insofar as it caters those exports specifically to DOLLAR-holding consumers, particulary those residing in the country of issue (dollar creation).It would be well to point out, however, that a shift away from a singularly privileged currency (e.g. dollar) reserve structure would NOT necessarily remove the lattitude of these other countries from continuing to pursue independent "beggar thy neighbor" monetary policies if they deem a relatively weak currency to be in their national interest. Therefore, looking beyond general inertia, the most active resistance to progressive change in the international reserve architecture probably springs forth mainly from the American doorstep -- to preserve its aforementioned benefits of cheap deficit borrowing.On the subject of resistance to change/transition, some final food for thought:If other national central banks are employing U.S. dollars and dollar-denominated bonds as their primary int'l reserve asset, what on earth is there of qualifying use for the U.S. Federal Reserve to use for its own behalf?Then, assuming such a suitable reserve asset could be found and put to use in the U.S. for that purpose, what force on earth could for very long prevent all other international central banks from transitioning toward employment of that same supreme asset, the King Reserve of all lesser reserves?Keeping it simple, this is largely why you do not see the U.S. as one of the pioneers in the employment of Mark-to-Market freely floating gold as a foundation of its reserve structure.But nonetheless, the requisite "trail blazing" has been done by Another, and others are not so dim that they won't follow as fate and opportunity best suits them to do so.R. Buongiorno! (8/16/05; 08:46:21MT - usagold.com msg#: 135021) yield curve para 1, should read "manipulation" instead of "short squeeze"--sorry.B Buongiorno! (8/16/05; 08:44:07MT - usagold.com msg#: 135020) yield curve Did anyone see the article in last Thursday's WSJ regarding manipulation of the 10 year treasury? One of the main points was that there is major derivitive action by speculators in amounts far exceeding available supply. The players mostly roll their positions forward, but the whole thing has the smell of a big short squeeze of the kind we goldbugs endured for many years. Result? A flat yield curve because the treasury has been concentrating on shorter instruments (than 10 years) for funding and some of the players are having to cover in a market grown thin.... A friend had made a point that very morning about "how could gold possibly be strong without weakness in the 10 year bond?" And there the answer was, in the WSJ! Long story short, I gave him my highlighted copy, and that was the last I saw of it. Anybody else see that article and what did you make of it? My take was recent dollar strength could have been caused by a big short squeeze in treasury bonds, and perhaps a rebound from oversold condition. Our trading partners could be in on it, since a weaker dollar would hurt them--and a stronger dollar could be useful in convincing the sheeple that "all is well". Others?Buongiorno! Goldilox (08/16/05; 04:43:09MT - usagold.com msg#: 135019) Rush I forgot. Just because free speech allows a man with a drug-addled mind to broadcast, doesn't afford me the gullibility to believe him.I've read Goebbels "greater fool" theory, and it is my responsibilty to protect myself against such "Elmer Gantries".If they get enough followers to self-destruct the planet, well, from what I read of the ancients, it won't be the first time!I imagine "God" playing the role of the collegiate father:"Too bad. So sad. Your Dad." Goldilox (08/16/05; 04:33:08MT - usagold.com msg#: 135018) Questions @ $Bill,I took an early nap and got up to watch the tickers for a while.If being religious is a role of "servant", then claiming "religious power" seems a huge oxymoron. If religion, as professed, is a spiritual art, then practicing it for temporal power might just be perversion.I harbor no admiration for the primitives who profess religious power, but even greater disdain for the educated, who really should know better.When GWB professes that God told him to "Bomb Iraqi civilians", is he any better than the Islamic hate mongerers or the KKK grand Knights who told their minions that God wanted them to burn out all the blacks and Jews?One of the great sadnesses of this country was the tenure of James Watt in the position of Secretary of the Interior. It is told by his subordinates that he prostated himself daily to pray for the end of the world. It sounds like a wish in direct conflict with his role as chief steward of the planet.As far as Rush goes, I have seen tee-shirts about him as well, and to be sure they are not complimentary. Gotta love that free speech, with all its potential for abuse.I wonder if Rush supports Congress' "one strike, you're out" rule for drug abuse in sports. If applied to representation and journalism, we'd see some massive numbers of vacancies. Topaz (08/16/05; 04:10:25MT - usagold.com msg#: 135017) @PRITCHO. My Freind,At the height of foreign unrest, GWB chooses to seize the opportunity to persue leisure ...weird, planned or neither neighbour? Dollar Bill (08/16/05; 03:53:20MT - usagold.com msg#: 135016) .,. G-lox, dang boy, when do you sleep? What time zone must you be in? I have a question you might like. On the subject of -rights of man-. rush limbaugh sells shirts insulting muslims and he pretends that it is insulting "leftists".He has over 20 million listeners a day. none complain? the fcc wont act? Should there be an independent leader with no fear of restraint, in a free land? Shouldnt freedom of speech have limits? Can a man get an audience, lead them to insult anothers religion, give out a supreme court justice home address 3 times, at least, and not have anyone to fear? Can he sell products from a govt regulated media perch into the public square, that insults anothers religion, and have no limits?Individual rights of speech must have limits right?If there was no evil, maybe not, but this is a world with evil, and no one is immune from going bad it seems.How does one stop him from doing this? John Rawls wrote about law, but how does a govt "respect the comprehensive doctrines" of its citizens if it hosts, on its regulated media, an individual faction, or organized faction that insults another groups religion?Maybe the forum gods are sleeping and wont delete till the working day begins;) I ask because I want to act. Dollar Bill (08/16/05; 03:39:03MT - usagold.com msg#: 135015) .,. Gold(endome/ilox), Pritcho,What happens if the iran bourse starts up?Buyers flock to the euro...speculators do also......... gold must rise? As investors are freaked about what is happening to the order and what might happen......doesnt the euro just skyrocket? Oil buyers....who would pay more if the it cost less ineuro? But what happens then? What happens to zillions of dollars? What happened when saddam traded in euros? Wouldnt the euro guys have to recycle,or buy dollars with euros to keep the euro in some acceptable-whatever that is- range?If the dollar is deeply effected, the us economy tanks somewhat, the world economy shutters, oil use goes down, price lowers, mullahs wont care, they are after control first, not concerned if the -west- lives at Iran citizen financial levels...can you have a workable 2 reserve situation? In such an untidy world, can that be managed?Did chirac think he was smart enough to make that work? Must have, but how?He must at least have had assurance from saddam that the euro guys could control the money game.I imagine the iran 12 mullahs like Sauron in Mordor. What did Gandalf say? "sauron ..................."(?) "and he does not share power".Dont religious guys with power automatically think that god is giving them power, and the 12 mullahs come from islam, which has many sentences that the 12 could choose from, many of them would lead them to think thier euro allies are lining up to be swallowed by islam, and hence, how much of an alliance of equals would this stand a chance of being?Anyway, I thought maybe Pritcho might be on to something if I view it as an invitation to ask the questions I think of as I think of them instead of waiting for ideas to come and then posting. I imagined that my posts were filled with questions, perhaps, but perhaps not obviously enough. Or.......hmmm......but I dont mind if the unspoken is the case. Goldilox (08/16/05; 03:18:17MT - usagold.com msg#: 135014) Purpose of Reserve Currency? Stating that the purpose of a reserve currency is to run deficits is like saying the purpose of having banks is so there's something worth robbing. At least John Dillinger thought so. He stated that the reason he robbed banks is so they had some competition for their theft.Not to suggest that many in government haven't pressed this advantage, but it is still larceny no matter how much lipstick you put on the pig.Most of the failures of western capitalism can be placed squarely on the shoulders of those who have envisioned government as a "feeding trough", One can easily imagine that this refers to individuals who "expect" support, but even more so to industries who lobby for preferential treatment, a la banking, energy, drug subsidies, ad infinitum.Just as similarly, the failures of "Communism" fall squarely on the shoulders of those who abused the state powers, as the demise of the Societ Union exhibited the rise of "oligarchs" who transfered their previous state "privileges" to into Mafia-style private ones.In either system, once the rights of the "people" become secondary to the "welfare" of the state, failure is inevitable. The people are the only reality, whereas the "state" is a fiction agreed upon for various simplicities, i.e. disaster security, common defense, etc. Goldendome (08/16/05; 00:03:07MT - usagold.com msg#: 135013) $ Bill, a correction for my post I stand corrected, you stated the purpose of the reserve currency is to run deficits. -- I said, inflate. But for practical operation purposes, deficits have certainly led to inflation at home and abroad. ViewYesterday's Discussion.
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