Welcome to the USAGOLD Gold Discussion Archives. Looking to buy gold coins and bullion? The archives of this gold discussion forum are a treasure trove of information to educate investors about protecting their wealth through portfolio diversification with private gold ownership. The discussion forum also covers the wider issues of the past, present, and future role of gold in international monetary policy and the dynamics of the modern gold markets. To join the debate request a discussion password here.
The opinions posted by all guests at this forum are expressly their own and do not necessarily represent the views of the management or staff of USAGOLD - Centennial Precious Metals. The hosting of this forum shall therefore not be construed as equivalent to endorsement by USAGOLD - Centennial Precious Metals of any of the opinions posted here.
ARCHIVED DISCUSSION FROM 2/21/2001 All times are U.S. Mountain Time (Yesterday's Discussion.) SHIFTY (02/21/01; 23:41:40MT - usagold.com msg#: 48698) Yahoo Finance http://finance.yahoo.com/m2?u Asia in the red tonight!$hifty Mr Gresham (02/21/01; 22:54:39MT - usagold.com msg#: 48697) "We have no bananas..." (only paper ones -- easier to peel & they don't rot) From Gold Hill Bear: "As to gold at $200, the old Henny Youngman (hope that is the right credit) joke applies... "A man is shopping at his local grocer and see bananas at 0.59 a pound. The man says "Joe, Bob down the street is selling bananas for 0.29?" Joe replies, "So go buy them from Bob." The man says, "Well Bob is out of them right now." Joe replies, "Oh, when I don't have any bananas I sell them for 0.19" Chris Powell (02/21/01; 22:53:20MT - usagold.com msg#: 48696) Intriguing Mining Web article about Gold Fields and Anglogold http://www.mips1.net/MGGold.nsf/Current/4225685F0043D1B2852569FA007F5C9F?OpenDocument 10:27p ET Wednesday, February 21, 2001Dear Friend of GATA and Gold:There's an intriguing article about Gold Fields and Anglogold just posted at www.theminingweb.com. Here's the link:http://www.mips1.net/MGGold.nsf/Current/4225685F0043D1B2852569FA007F5C9F?OpenDocumentIf the link doesn't work for you, just go to:http://www.theminingweb.comand scroll down a bit. You'll see it.Here's a fun excerpt:* * *One of the wildest suggestions is that Anglogold may be dismembered. It is currently held in such low regard outside South Africa that many shareholders might see value in having its operations distributed among better operators. Ironically, this mirrors precisely comments made by Anglogold marketing director Kelvin Williams when he spoke at the Cape Town mining conference recently: "There is only one arithmetic governing the consolidation of the industry and that is the arithmetic of value to shareholders."One analyst pointed out that the government may also spend some time thinking about the damage hedging did to the economy, noting that Anglogold is the most prolific hedger: "What's in South Africa's best interest? The government issues mining licenses, not sell-all-your-reserves-forward licenses." * * *CHRIS POWELL, Secretary/TreasurerGold Anti-Trust Action Committee Inc. SHIFTY (02/21/01; 22:42:18MT - usagold.com msg#: 48695) Peter Asher Mail call$hifty Strad Master (2/21/2001; 22:29:51MT - usagold.com msg#: 48694) For what it's worth... For everyone's edification. I never post anymore unless I have something useful to add (I certainly didn't want to get mixed up in all the political nonesense that went on during the election.) In talking to PH on the phone today, though, I mentioned that I'd gottten an interim update from Prechter's Eliot Wave. He said no one had posted anything up about that so here goes. He said in essence - the sentiment for Gold is so bad now that despite the fact that Eliot Wave has predicted a bear market in metals nonstop for the past 21 years, the time is drawing nigh for a big breakout to the upside in gold. He still thinks it will fall into the $ 180 range first but he wants his subscribers to begin thinking in terms of purchasing gold if, indeed, it gets down that low. Small consolation to those of us who's stash was purchased in the low 300's, but he also isn't indicating an upside target so who knows where it could go. Anyway, I learned a LONG time ago to take all these predictons with a huge cube of salt. If anyone is intersted in more details I can go through the article more carefully and post them, upon request. In the meantime Mrs. Strad continues to do well with her pregnancy. We know it will be another little girl. (making the count 3 and 1) I promise to keep y'all informed. Mr Gresham (2/21/2001; 20:46:25MT - usagold.com msg#: 48693) The Sting Haven't seen the Redford/Newman classic in awhile, but I just got this image of the grifters' team scrambling to close down the fake "betting-shop" after accomplishing their mission, "stinging" the big gambling mobster with fake "insider information." Kinda like Comex & its paper-pushin' kin? WW Oracle (2/21/2001; 20:33:12MT - usagold.com msg#: 48692) (No Subject) test Chris Powell (2/21/2001; 20:14:54MT - usagold.com msg#: 48691) Shaka inspires another GATA battle plan http://groups.yahoo.com/group/gata/message/670 Special relevance to South Africa.To subscribe to GATA's dispatches by email and get them immediately so you don't have to go look for them, send an email to:gata-subscribe@yahoogroups.com Chris Powell (2/21/2001; 20:12:37MT - usagold.com msg#: 48690) Gold Fields gives up on Franco-Nevada http://groups.yahoo.com/group/gata/message/669 Will it stay independent, or will the Anglo/Barrick bidding get going?To subscribe to GATA's dispatches by email and get them immediately so you don't have to go look for them, send an email to:gata-subscribe@yahoogroups.com Orville Goldenbacher (2/21/2001; 19:26:52MT - usagold.com msg#: 48689) Kuwait puts out small oil fire, production steady http://news.excite.com/news/r/010220/07/energy-kuwait-fire KUWAIT, Feb 20 (Reuters) - Kuwait said on Tuesday it put out a fire at a gathering centre connected to Burgan, the world's second largest oilfield, and stressed that production was not affected.State-owned Kuwait Oil Company (KOC), the sole producer of oil in the OPEC-member state, said in a statement that five people were wounded when a fire broke out earlier on Tuesday at gathering centre (GC) 2.Two of the injured have already left hospital."The damage due to the fire is limited and will not impact production," the head of KOC's media department, Sheikh Talal al-Ahmad al-Sabah, said in a statement sent to Reuters. PH in LA (2/21/2001; 19:05:55MT - usagold.com msg#: 48688) Document not available! MarketTalk:At the link you posted the message says:Yahoo! Documento expiradoEl documento pedido no esta disponible.Document expired.The document requested is not available.Looks like the story is being buried in Spanish, too. SHIFTY (2/21/2001; 19:04:26MT - usagold.com msg#: 48687) MarkeTalk Your link-ie no work-ie$hifty MarkeTalk (2/21/2001; 18:51:27MT - usagold.com msg#: 48686) Kuwaiti oil field on fire--Saddam's Revenge? http://espanol.biz.yahoo.com/afp-law/010220/w10.html A story this big should have been breaking news but we have not seen mention of it anywhere. It was a phone call from one of our European clients who, in turn, received a phone call in the middle of the night from a contact in the Kuwaiti region. (Many thanks to CoBra2.) And wouldn't you know it. It was written in Spanish!! Those of you who can read Spanish are invited to visit the link posted above to read the whole text. We hope to find the English version soon.A summary of the story is that a fire in the second largest oil field in Kuwait started yesterday, February 20th. However, a person acting on behalf of the Kuwaiti Oil Company when questioned about this story neither confirmed nor denied it. This field named Burgan has a production capacity of more of 1.5 million barrels per day (mbd), which is approximately 80% of the total capacity of Kuwait. While I do not speak Spanish myself, I contacted a close personal friend who gave me the translation over the phone after receiving a fax transmission of it. I find it incredible that this story was buried in the press. When coupled with tonight's API numbers showing the largest drawdown (12 million barrels) in recent memory, perhaps this story will vault to the top of the headlines. I can still hear Saddam Hussein's words reverberating in my mind about exacting revenge against Saudi Arabia and Kuwait for allowing U.S. and British bombers and fighter planes to fly through on their way to Iraq last week. Anyone for round two of the Gulf War? Turnaround (2/21/2001; 18:12:15MT - usagold.com msg#: 48685) UCC I pledge collateral to the FedWhich owns the United States of AmericaAnd screw the public, which it scamsOne Note, under gold, irredeemableWith liquidity injections, forestall aunuggets (2/21/2001; 17:58:05MT - usagold.com msg#: 48684) Randy (@ The Tower) Concerning the state of the "Average American's" intelligence and forethought in their financial affairs and faith in our "infallable fiat";"The truth shall set you free....... If it doesn't make you want to puke first.""AND"....... definately ! (grin) Farfel (02/21/01; 17:21:17MT - usagold.com msg#: 48683) @ Gold stocks getting ready to launch? I think today's strong gold stock action in the face of a hard dropping Dow and a very weak Nasdaq is confirming a theory I posited at Kitco some three years ago.Specifically, I felt that, contrary to oft repeated gold short warnings, the gold stocks would NOT follow the stock market into a dramatic downspiral. Ultimately they must move strongly opposite the general market downswing.I based my theory on simple human psychology:As it stands, the only investors remaining in badly downtrodden gold stocks are either those who have lost a helluva lot of money and are so close to "the pavement" that there is hardly any drop left...or they are recent big money accumlators who are too powerful to get shaken out of their long positions.Essentially, for those few investors still holding gold stocks, they have seen the worst, the most left field shockers, and over time, they have steeled themselves to bad news. In fact, after so many years of bad news...after downsizing to a simpler more economical lifestyle...the gold investors are a tough-skinned lot. Not much left to shake or scare them, especially when the fall to zero is only an inch away.On the other hand, the Dow and Nasdaq investors have adopted lavish lifestyles and lavish super sized expectations on the basis of their years of stock market abundance.They have grown accustomed to fly high above the ground for some years and any fall would be a long long drop. They have become accustomed to hearing mostly good news, and on the few occasions where bad news surfaced, they have grown accustomed to see it all dissipate rapidly, with a quick resumption of good times.Basically, the stock market bulls have so much more to lose than long downtrodden gold investors, and that means it takes a lot less to scare the average mutual fund investor. Most SM bulls could never begin to imagine severe downshifts in the new extravagant lifestyles they have created from bull market profits, and the very thought leaves them quick to pull the "sell" trigger.As the saying goes, "What does not kill you makes you stronger!" and that saying really applies to gold investors who are still standing, still able to smile, and enjoy the day, who have found ways to flourish, often without a penny of profit in many years.The gold investors' inner strength is a palpable one, radiating inner confidence, and it is a magnet of strength to those SM investors currently nervous, unsteady, and uncertain of which direction to turn.No doubt we also are seeing the first gravitations of mainstream investor funds toward gold investments as they seek to ally themselves with the strong self-assured leaders who foresaw the tumultuous financial events now unfolding.In the final analysis, one thing is very true in this world: we prefer to be among people we like, who we admire, who enlighten us, and who inspire confidence. That is much preferable to the company of anxious rich people, who disappoint, who deceive, and who can only support their perspectives in life on the basis of stating, "hell, we've been right this long, so it must mean we will always be right." ThanksF* CoBra(too) (02/21/01; 16:50:50MT - usagold.com msg#: 48682) Oro - thank you for your response - ... and as I'm a bit intoxicated - just coming back from a dinner ... I'll try to respond later - since it seems I may have some more questions ... though, thanks again for responding ... and what-ever happened to b) quality ... ... let's ask Daimler/Chrysler - without Lee Iacocca - tosee no wee BMW to trouble you. Sometimes b) may be ... important ... too - cb2 Mr Gresham (02/21/01; 16:28:00MT - usagold.com msg#: 48681) "A Good Long Read" http://www.bearforum.com/cgi-bin/bbs.pl?read=113324 on the Fed's rate cuts, approaching recession, inflation in consumer goods, and other bad news in general. My brain's suffering Econ Fuzz-out so I didnt' quite make it through the whole thing. Now off to some stimulating IRS forms... Buena Fe (02/21/01; 16:13:45MT - usagold.com msg#: 48680) BooooooooooooooooooooooM! http://www2.marketwatch.com/news/story.asp?guid=%7BF7997AE8%2D2FF7%2D4000%2DB8F4%2DC4E4D72A66B5%7D&source=htx/http2_mw Crude supplies drop by 12 mln barrels By Myra P. Saefong, CBS.MarketWatch.comLast Update: 5:44 PM ET Feb 21, 2001 NewswatchLatest HeadlinesGet Alerted NEW YORK (CBS.MW) -- Crude futures prices topped $29 a barrel in after-hours trading Wednesday, after a key U.S. report reflected a drop in last week's crude supplies that was 30 times higher than some expectations. After the market closed, the American Petroleum Institute said crude supplies, as of the week ended Feb. 16, fell 12 million barrels. The data came in well ahead of 400,000-barrel to 800,000-barrel drop expected by analysts polled by Bridge News.In after-hours trading shortly after the data was released, April crude climbed 50 cents to $29.03 a barrel. March heating oil added 1.39 cents to trade at 75.50 cents a gallon and March unleaded gasoline gained 1.05 cents to 84.20 cents a gallon."Crude is going to explode," Phil Flynn, a senior energy analyst at Alaron.com in Chicago said. Buena Fe (02/21/01; 16:11:59MT - usagold.com msg#: 48679) ruben's banana Bush et al, must have been shown the depth of the abyss...........and are now in panic denial!Feb. 21--2236 GMT/1736 ET ................................................................. TOP STORIES: Lindsey says O'Neill and Bush team all support strong-dollar policy Washington--Feb. 21--The entire Bush administration, including Treasury Secretary Paul O'Neill, support the strong dollar policy, President Bush's top economic adviser, Lawrence Lindsey, said Wednesday. ( Story .21099 ) Randy (@ The Tower) (02/21/01; 16:07:29MT - usagold.com msg#: 48678) Sir aunuggets... Surely you aren't suggesting that "AND" would have been a better choice of words. Surely you wouldn't want to suggest that the typical U.S. citizen is anything other than the best informed and most cautiously responsible being when it comes to managing the cumulative fruits of his/her life's productivity.I sure wouldn't. Which makes it all the more difficult for me to explain why the U.S. has become a net exporter of gold to the OTHER peoples of the world (as explained in previous post) despite our collectively massive personal affluence and monetary riches. <huge grin> aunuggets (02/21/01; 15:06:38MT - usagold.com msg#: 48677) Randy (@ The tower) You said "One would only conclude that indigenous faith in the local dollar remains strong, or else local apathy and ignorance rule the day".What do you mean "or else" ? (grin)This gold market is beginning to remind me of a very heavy Yo-Yo with a very short string. Randy (@ The Tower) (02/21/01; 15:01:17MT - usagold.com msg#: 48676) For those of you confused by the natural selloff trend in gold derivatives... http://www.usagold.com/NewGoldMarket.html There is nothing wrong with the metal itself, either now or into the future. We recall here the FIRST of five items mentioned in the Washington Agreement -- itself an extradordinary act by 15 world class central banks....Signatories: The European Central Bank and the central banks of Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Spain, Sweden, Switzerland, and England."In the interest of clarifying their intentions with respect to their gold holdings, the above institutions make the following statement:1. Gold will remain an important element of global monetary reserves."Now, wipe the drool off of your chin and seize your share of metal while it yet moves at the inferior paper-derived prices. Hill Billy Mitchell (02/21/01; 14:45:26MT - usagold.com msg#: 48675) Nasdaq's intra-day low The talking heads tout the fact that the Duck did not hit a new intra-day low. Hinted that every time it approached a new intra-day low that some very "intelligent" buyers jumped in to get their bargains. If it weren't so shameful, I would die laughing. They pretend that we have the same circumstances this time that we had at the last intra-day low. I guess that the ineptness of an extra trillion dollars give or take injected by the FED prior to this "new" downturn has not frightened them one bit. The fear will come when the creditor comes calling.Respectfully,HBM Randy (@ The Tower) (02/21/01; 14:25:41MT - usagold.com msg#: 48674) Turkey looks set to move to floating lira valuation, leaving exchange rate to the marketplace http://quote.bloomberg.com/fgcgi.cgi?ptitle=Top%20Financial%20News&s1=blk&tp=ad_topright_topfin&T=markets_bfgcgi_content99.ht&s2=blk&bt=ad_position1_topfin&middle=ad_frame2_topfin&s=AOpQo0RRYVHVya2V5 Excerpt of a tale of currency woes and dollar selling:Ankara, Turkey, Feb. 21 (Bloomberg) -- Turkey may abandon the defense of its currency, the lira, after overnight interest rates as high as 6,200 percent failed to stop the flow of foreign reserves out of the country, said the chief executive of Turkey's second-biggest bank.+The government is "very close to deciding to go to a floating rate for the lira," Yenal Ansen, CEO of state-owned Turkiye Halk Bankasi AS, said outside a meeting of top government and economy officials in the capital, Ankara.+Turkey has limited the decline of the lira for 14 months to meet inflation goals set by the International Monetary Fund as part of an $11 billion loan program. A row between the president and prime minister this week sent Turkish stocks and bonds tumbling, and Turkey canceled daily injections of local currency into the banking system, forcing banks to sell dollars for liras. .......(see link for more)------Wanna be a millionaire? Sell one ounce of gold today in Turkey for 178 million lira....up 300% since 1997 when an ounce fetched 60 million lira. But, this is just a small currency with little effect on gold itself other than high local prices. Of course, you all realize what would happen to the value of gold "across the board" in the event of a failure of a more significant world reserve fiat currency...the ubiquitous dollar. To the moon. Believe it. Randy (@ The Tower) (02/21/01; 14:04:25MT - usagold.com msg#: 48673) Fed adds reserves, Treasury "props" bond market http://biz.yahoo.com/rf/010221/wat023225.html After yesterday's blistering day of open market operations, the Federal Reserve's Account Manager took it easy today, engaging in only $3.0 billion of two-day repurchase agreements to effectively add reserves to the nation's banking system...while fed funds traded 1/16th percent over the Committee target.Meanwhile, the Treasury announced today that tomorrow it would be purchasing up to $1.75 billion of its 30-year bonds (having maturities between February 2015 and August 2019) as coordinated through the New York Fed. Nice One-Two punch, considering the Fed's own outright purchase of Treasury securities yesterday in addition to the concurrent massive repo operations.got gold? ORO (02/21/01; 13:57:44MT - usagold.com msg#: 48672) CoBra(too) - PPI CPI http://www.oecd.org/std/gr.pdf US industry pricing power is diminishing due toa) strong US$ (foreign competition)c) a time lag in filtering through of energy capacity limits to end user product limitsThe link above provides the picture in the US (Pg 3) in the "prices" graph. The source of the problem is a draw on the global energy infrastructure that is being caused by the coming online of much of the new investment of the past decade and the past few years. Demand information comes from the consumer to the entrepreneurial sector and from there to the capital sector and then to the final production and service sector which sends it upstream towards basic industry, energy and resources. All demand info also goes from each industry group to the labor market and to energy - of which the consumer is a direct customer (not only through other industries). The information on supply moves the other way - the exact opposite of the demand information. The current global situation is such that demand information has reached the energy and resource sectors - in 3 waves 1994-5 at first (S Amer), 1996-7 (SE Asia) and then 1999-2000 (USA).Debt quality and corporate profitability, or financial health, are a function of the difference CPI less PPI (Revenue less Cost) for businesses in general. The CPI and the PPI - shown in each of the country graphs in the URL - shows a quick convulsion of the PPI relative to the CPI, where the PPI moves up towards CPI sharply and then either CPI responds or PPI is rebuffed, or both. In Korea, the response was very strong in 1997 as in the prior years local demand combined with US and other Asian demand in the energy and resource sector to raise global prices for energy just enough so that the trade balance turned negative and drained financial power. The response was a sudden 20% spike in import (energy) prices in local currency in 1997, followed by a 7% rise in CPI, and by a drop in local consumption (down 25%) and jump in exports (up 70%), which brough PPI back down by 9%, and led to a flat CPI for 1998. The trends then resumed of CPI and PPI rising in tandem. In the US and Europe (using the Netherlands as the nexus of EU interaction with the world), PPI dropped 8% and 5% respectively as the Asian crisis progressed in 96-98 and Asians were priced out of consuming practically anything. The lower PPI relative to the CPI (particularly in Germany, France and Italy) provided a boost to business purchasing power and led to an expansion that brought unemployment down from 7-12% in EU countries down to the present 3-8.5%. As Asians exported their way out of disaster, the EU and the US consumed more Asian products without paying much more (and often less) for the extra consumption. The demand for energy and resources from Asian exporters and new US and EU business ventures as well as the new workers (9 mil in EU, 5 mil in US), led to an overdraw on basic resources (energy) and a rise of PPI of 11% in the US and EU (as the Netherlands, Franco German PPI was only up 6%).This is not uniquely a US problem. Energy resources were surpassed in many places because of monetary and trade games played by Japan most of all (recently), the US (for 5 decades), and Europe (for 3 decades).PPI and CPI have been steady to down in Japan over the whole Asian crisis and US / EU boom. The flatness of the Japanese values is an indicator of Japan having exported its problems abroad, just as the US has exported its own. Randy (@ The Tower) (02/21/01; 11:49:07MT - usagold.com msg#: 48671) The Tower's look at the US International Balance of Trade data for December 2000 http://www.bea.doc.gov/bea/newsrel/trad1200.htm I will get to the gold in short order, but first the big picture: The Commerce Department today announced that America's trade deficit with the rest of the world reached an all-time high of $369.7 billion, breaking the annual record for the third straight year. America's December trade imbalance (at $33.0 billion) eased just slightly from from November's revised $33.1 billion deficit, yet remaining within arm's reach of its all-time high in September ($33.7 billion). December exports slowed by $0.7 billion to $89.9 billion, while cautious American consumers pared our import bill by $0.9 billion versus November's levels of $123.7 billion.Looking at some specific trading partners, America's trade shortfall with China reached a record imbalance of $83.8 billion, eclipsing Japan for the first time as our largest source of trade deficit. Nonetheless, our net trade with Japan also reached a new record deficit, at $81.3 billion. Our trade gap with, Canada, our biggest trading partner, also reached a record deficit of $50.4 billion. Trading with Western Europe, our deficit reached a record $59.8 billion.And now for the gold portion of the picture...America's net flow of gold via trade continues to be outward at an alarming pace. December seasonally adjusted nonmonetary gold IMPORTS totaled $210 million (approx 24 tonnes). Meanwhile, the amount of U.S. gold demanded for EXPORT by our trading partners totaled $609 million (approx 70 tonnes) for a net loss of 46 tonnes. This net outflow exceeds by approximately 6 tonnes the pace seen in November.Comparing year-end figures for 2000 versus 1999, American IMPORTS of gold declined by $375 million to $2.665 billion, while foreign demand for our EXPORTS of gold increased by $787 million, calling for $6.023 billion in total over the past year. Our gold exports continue to run fast and far into eager international hands.Weight-wise, we imported only approximately 300 tonnes while exporting approximately 675 tonnes -- an outflow balance that more than absorbs our entire domestic annual production of new gold via mining. Not at all what you would expect when you pause to consider this land to be the wealthiest country on Earth. One would only conclude that indigenous faith in the local dollar remains strong, or else local apathy and ignorance rule the day.Seemingly, in any currency collapse affecting the dollar, those having the most to lose will, in fact, lose the most. Let Centennial Precious Metals help you protect your net wealth by procuring adequate holdings of that hard asset being sought for and saved the world over. ORO (02/21/01; 11:45:11MT - usagold.com msg#: 48670) Japan - adjusting to reality Two recent posts shed some light on Japan's situation:Randy's first post today pointing out the Japanese are in their first trade deficit in recent history, and one from an unremembered poster reporting his experience of high end Japanese electronics having fallen in construction quality. These two items are effects of the same one cause and the myriad secondary issues deriving from it, most notably the Japanese government policies in reaction to it.It is the demographic shift in Japan and the transition of the Japanese baby boom generation out of the workplace (particularly off the shop floor) and the entry of the "New People" into it. Obviously, the lack of experience shows in hiccups in quality. This was also the driver for Honda and Toyota building US plants, as well as other Japanese auto companies building plants in South America. Japanese make work programs and extremely high taxation are a complete repetition of the "New Deal" errors of the depression. They were incredibly bad policies then, and they are just as bad now, perhaps worse.Government has stood by the existing industrial and financial leadership in supporting their failed banks and teetering companies. The Japanese Government has perpetuated the problems of the economy by supporting the continued power of the people who created the problems in the first place. Bad judgment of corporate leadership and financial leadership led to over-expansion of less-than-competitive export industries while national and local government were focused on prevention of Japanese consumption and protecting the franchises of existing retailers, which put Japanese local prices 20-25% above those in other industrialized nations. Furthermore, the Japanese government had taxed away consumer purchasing power so that consumer spending is just 40% of Japanese final sales - or "economy". Where the private sector was 60-65% of spending in prior decades, with capital spending at 20-25% of it, now capital spending has dropped to 15% of the total and government spending has completely taken over that expenditure, thus crowding out the consumer who for the first time had a chance to compete with businesses for the economy's resources. The Japanese government took away this capacity and doomed their people to stay poor in one of the richest countries on earth. Japanese elderly could have retired into new and more comfortable homes. They could have hired household help that would extend their independence. But no, construction workers were taken by government to work on roads leading to nowhere, piers where no boats will ever dock, public buildings where no service would ever be provided, and taking up some of business' expenses so that they can continue to produce exports at an overall loss to the Japanese public. Now widely discredited, the technocrats of industry finance and government are slowly letting go with reforms in finance, in retailing, and in corporate governance laws. In the meantime, Japan's population has grayed and a greater portion of it can't work, but must be cared for. That, and the growing inexperience of the workforce has to bring about the end of the Japanese trade surplus and the advent of a negative current accounts balance (it is still very strongly positive because of the growth of Japanese foreign holdings of both real and financial assets producing strong foreign source income). The Japanese have invested heavily in the US, in SE Asia, and in S America. They have played a major role in both backing the dollar with goods production available on the international markets, and in expanding investment in the US and elsewhere. They have also been the most powerful force in the world in causing investment bubbles - in SE Asia, in the US, and in S America - and in their bursting as Japanese investment rates abroad have declined along with the decline in the trade surplus. The volume basis trade surplus had disappeared about 1997.The Japanese have about $5 trilion of foreign assets to sell during the weak period. Thus making for pressure on financial asset prices worldwide. This trend will be exacerbated by the US investor's demographically driven quest for income generating investments which Bill Gross of PIMCO pointed out in an article someone posted here recently. Since stocks are at historically low dividend and earnings yields, there will be a general trend to see these rise as Japanese sell and Americans buy only as the earnings and dividend payouts rise. EU investors are already seeking income and have moved their sights abroad because of low rates at home. As asset sales by Japan start some years down the road, the only potential buyers would be the Chinese, Koreans and Indians (and other SE Asians), who will have their baby boom generations maturing into peak productivity in the 2015-2025 period, Koreans and other SE Asians getting there somewhat earlier. We had better root for their further economic development, Japanese must pray to all the deities of Shinto that these countries buy the financial assets and continue expanding their production as Japanese start importing it. Mr Gresham (02/21/01; 11:35:36MT - usagold.com msg#: 48669) Inflation/Deflation, More Questions on Big Institutions http://www.bearforum.com/cgi-bin/bbs.pl?read=113207 More on that, from them.Belgian --We're in the dark, really, about European CB structures. Is Bundesbank govt-owned, or a quasi-private like the Fed? What about the other CBs? How do they co-exist with the ECB taking over currency creation and rate-making functions? (I know, -- I gave that link for CB websites, but I haven't gone out there and explore these questions -- not expecting many answers from official sites anyway.)The Reg Howe piece about BIS being co-opted by USA as its mission gets squeezed by ECB, How does this fit with our scenarios if true. What has FOA said to correlate or contradict this? Sounds like Peter Fisher made a small excursion over there in his early Fed days. (Peter, if you're reading this: My question is answered from your Fed bio page: You're too young to be the other two Peter F's I've known. Now behave yourself!)One of the odd things in trying to figure out the issue of gold manipulation is meeting up with these giant murky political/economic institutions having great effects upon the metal that we think of as the embodiment of free markets (someday, somewhere, in a galaxy far, far....).I mean, what IS the IMF? It's got how many tonnes of AU; to do WHAT with? Whose playthings are these biggies, or are THEY being wrestled over in this changeover? Probably so, methinks. Yeesh! Belgian (02/21/01; 11:23:13MT - usagold.com msg#: 48668) CB - Gold and Bookvalue In US$/ounce : 1996 figuresItaly = 380France = 371Ireland = 350Portugal = 322UK = 298Denmark = 295Spain = 271Finland = 250Netherlands = 248Greece = 237Austria = 167Germany = 92Sweden = 50Luxemburg and Belgium = unkownSwitserland = can't find itLogic commands that with the creation of the EURO, all these different bookvalues need to be harmonised. I don't know if Germany with the lowest Bookvalue has already revalued its gold ? But at the time (1997), there was a conflict about this revaluation between the bundesbank and the government : revaluating and transferring the profit, would mean pure money-creation. Is there a connection with the known gold-short position of Deutsche Bank ? Specialists ? Was the revaluation-profit used to finance the DDR reunification?Switserland : they did the revaluation, together with the decission of the 1.400 tons sale ! Zero operation in paper .Gold left is 1.190 tons. Revenue from sale was 7 billion SWf and was used to erect a fund for the needing (hummmm).Apparently, only 400 tons have been revaluated.When the Suisse announced their decission in oct.'97, Anglogold replicated immediately with the suggestion to set up an international organisation wich should adsorp (buy), in name of the CBs, the excess of sold gold ! In order to have an overvieuw of an orderly sales-program. (transparency)(B. Godsell). In that same year papergold traded the same one ounce, over 20 times through options and futures, before it physically arrived at its real buyer ! Anglogold, started immediately with the closing or sale of shafts with a cost of more than 250$/ounce. Hedging at that time mounted to 37% of total production-'98 and 40% for '99 . But planned to have reduced hedging to 15% for 2000 and 5% for 2001. Now we know better.Alot of lobby-work has been done towards the Central Banks, begging to organise weekly auctions. Anglogold had already three years ago the firm ambition to become the strongest gold-producer in the world. CoBra(too) (02/21/01; 10:07:57MT - usagold.com msg#: 48667) POG Spike? Did I call this short lived "lift" a spike? Should've known better to wait for the down "drift", or negative spike. What else has n o t changed? ... except, maybe - the administration ... administering more of the same as time is running out for them to distance themselves from the effects of a grossly mismanaged economy of hype. Get physical -cb2 Hill Billy Mitchell (02/21/01; 09:59:00MT - usagold.com msg#: 48666) The substitution of Cool Aid for Coca Cola and Sam's Choice In that day food stamps will be substituted with purchases of Kool-Aid in lieu of Coca Cola and even Sam's Choice will be considered a luxury. Now, far be it from me to recommend investment in the common stock of the division of the company that produces Kool-Aid. Let me just put it this way. If I were given the following choices only, (for the investment of the paper transferred to me in exchange for my confiscated PM's):GMGEHPWMTMICROSOFTIBMHOME DEPOTKOOL-AIDCOCA COLAMy forced paper asset allocation would be as follows:KOOL-AID (100%)Respectfully,HBM Journeyman (02/21/01; 09:51:17MT - usagold.com msg#: 48665) The BIG ONE? @ALL http://journeyman.1hwy.com/J%2DBig_OneIIIb.html ~"Interest rates in Turkey are at 4000% and there are massive amounts of money leaving the country. There is concern about stability -- ah, economic stability in Turkey. There is some talk that this could be the epicenter of something larger - - - remember Thailand a few years ago." -Bob Pisani, CNBC, Feb. 21, 2001 ~10:32AM ESTIf you remember, Thailand was the beginning of the "Asian Contagion" that swept Thailand, Korea, Indonesia, Philipines, etc. resulting in massive inflation and currency devaluations all across the area.You might want to check-out the link above for L. Reichard White's compendium of clips supporting the notion of dollar collapse - - - if you haven't already. (L. Reichard is the dude who brought us "BIG Float The American Damoclese" available in the Guilded Opinion section here at the forum.) There was a report yesterday that Turkey had expended $4 billion in just 24 hours attempting to defend it's fiat currency unit, the lira. There is a section of clips putting today's Turkish 4000% interest rates in perspective - - - and also the possibility of Turkey being the epicenter of something bigger. A clip from the link:On such judgments [the "discounted value of future expected returns"] ofvalue rest much of our economic system. ...But history suggests thatthey also reflect waves of optimism and pessimism that can be touchedoff by seemingly small exogenous [external] events. +... the violence of the responses to what seemed to be relatively mildimbalances in Southeast Asia in 1997 [Thailand] and throughout the globaleconomy in August and September of 1998 has illustrated yet again thatthe adjustments in asset markets can be discontinuous ... +History tells us that sharp reversals in confidence happen abruptly, mostoften with little advance notice. These reversals can be self-reinforcingprocesses that can compress sizable adjustments into a very short timeperiod. +We can readily describe this process, but, to date, economists havebeen unable to anticipate sharp reversals in confidence.Collapsing confidence is generally described as a bursting bubble, anevent incontrovertibly evident only in retrospect. -Federal ReserveChairman Alan Greenspan, "New challenges for monetary policy,"Jackson Hole, Wyoming August 27, 1999Regards,Journeyman Hill Billy Mitchell (02/21/01; 09:40:56MT - usagold.com msg#: 48664) Walmart up yesterday, gone tomarrow Look at Walmart yesterday and today. The day is coming when the Walmart associates (employees)will have to sell their Walmart Stock in order to buy their groceries from their former employer. I guarantee that these talking heads on CNBC are not remotely aware of this part of the iceberg which, of course, is not presently in the script.Respectfully,HBM Hill Billy Mitchell (02/21/01; 09:09:25MT - usagold.com msg#: 48663) Yesterday (Tuesday, February 20, 2001) It occurs to me that yesterdays market action involved little more than the discounting of the news we have today. The discounting of course was done by those few insiders who had the information in advance the "little bittie republicans". Some day I will tell of the moment I ceased to be a "little bittie republican".Respectfully,HBM USAGOLD (02/21/01; 08:48:00MT - usagold.com msg#: 48662) Whoops. . . . http://member.usagold.com/commentaryreview.html By now, you would think that I'd know how to use this system. Link to Commentary & Review page above. USAGOLD (02/21/01; 08:45:47MT - usagold.com msg#: 48661) http://member.usagold.com/commentaryreview.html Still Having Fetch Problems; Here's Today's Commentary Inflation Bear Sends Goldilocks Economy Running for CoverGold 258.50 +2.10 Euro (Comex March) 91.74 + 0.72 DJIA 10,702.30 - 28.50 2/21/01 www. usagold.com. . . . .Gold improved in the early going on the strength of two crucial government reports -- consumer prices and the trade gap. The Bureau of Labor Standards reported a consumer inflation rate of 7.2% annualized -- up.6% for January and double the .3% predicted by analysts. Natural gas was up 17.4%. The bad inflation news comes on top of last week's report that wholesale prices were running at double digit levels (13.2% annualized) -- a portent of things to come on the consumer level. The December trade deficit numbers released this morning capped the worst international trade year in U.S. history -- a deficit 39.5% higher than last year's record. ($369 billion in 2000; $265 billion in 1999) The two reports together sent a stern warning to investors and consumers that all is not well in an economy that just two years ago was being touted by some Wall Street analysts as one that had overcome the market cycle and promised nothing but blue sky from here on out -- the Goldilocks Economy, I believe, is how they referred to it. We should have known. After all, the Bear does play a prominent role in that famous tale. The dollar is taking a hit; stocks are down; oil is creeping slowly higher. The 1970s deja vu proceeds. That's it for today, my fellow goldmeisters. More later if warranted. We'll leave up last Friday's "Investors Mull New Dynamic" for a few days in that it provides an overview that helps explain today's news.More, go to link above. Registration required. Galearis (02/21/01; 08:16:51MT - usagold.com msg#: 48660) email from RHODY re yesterdays lease rates.... http://www.kitco.com/market/LFrate.html USAGOLD's friendly and responsive forwarder (Galearis) of mail of interest generously supplies an observation from RHODY re lease rate activity of yesterday. The link info is likely out of date... Comments welcome:snip*******************splat Take a look at the gold lease rates. The pipe is now almost closed, with only .05 to .07% spread between one month and one year rates. Notice that the surge in rates was all concentrated in the one month to 6 month terms, and the one year (hedging term) showed little action. So speculative shorts used leased metal today to bash down gold, but mines continue to avoid the hedge trap. The closing of the pipe this time has been gradual, in contrast to all other lease rate spikes. Also, this spike coincides with distinct bear pressure on spot gold, while previous lease spikes coincided with rallies. In short, (sorry) it's different this time. I'm not arrogant enough to make a prediction on market direction from this sort of pattern, particularly when the pattern being commented on is a function of manipulation, and the core manipulation strategy at that, but perhaps there are others on USAGOLD who don't mind adding insight and prediction where fools like me now fear to tread. Regards, Rhody CoBra(too) (02/21/01; 08:06:13MT - usagold.com msg#: 48659) PPI + 1,1% vs CPI + 0,6% A question to ORO - May it be that the pricing power of US industry is diminishing due to a) strong US$ (foreign competition) b) lower quality product c) or just a time lag in filtering through to end useror all and some more explanations. In any case, this does not smack as a one time aberration - get your gold while it's a fgive-away -cb2 CoBra(too) (02/21/01; 07:43:51MT - usagold.com msg#: 48658) A POG Spike on COMEX?! Haven't seen that for a while! PPI, CPI induced, or are the guys at the watch getting sloppy, or running out of ammunition? - Any Bubble Busters out there? cb2 CoBra(too) (02/21/01; 07:20:47MT - usagold.com msg#: 48657) Snippets from Bill Bucklers Latest Privateer: "Trapped between Debt and Taxes - US taxes highest in 50 y's and so is debt. Added together 33,8% Fed and State Taxes and 34,1% of debt maintenace makes a total of 67,9% of all income. ...The new serfdom is composed in equal partsof taxes and debt servicing." - As only 1/3 left for living expenses and savings -if any -, I'll wonder who's going to consume the next gas guzzling SUV as the a local Fed Head suggested as the little extra push the economy needs to - come back from the brink? - if I may ask?Though abbreviated B.Buckler goes on: "Having their Cake and eating YOUR's too! The political establishment wanting to do two incompatible things at the same time. Keeping the current size of the state and sustaining the economy. ...The State of the SMīs ... Nasdaq 100 traded end of Dec. 2000 at a P/E of 127 (high 165 March 00)- at present the Duck is down 50% from peak - yet the P/E today is 811 - how can that be? Easy - over the same period earnings are down 90%!" Well, so much for the wealth effect and IMHO the Dow and SnP will have to follow suit, shortly - all the buyers are in and hurting, foreign $'s will be repatriated, seeking safer havens. The unlimited creation of paper $'s seems to be drawing rapidly to its own foreclosure. While the recent PPI rise of 1,1% and today's CPI of 0.6% doesn't seem to affect POG yet; rest assure it will, when all lights start flashing - game over (dot com). -cb2 PS: www.the-privateer.com - is mostly for subscribers - @ USAGOLD/MK - as I've seen B.Bu. posting here occasionally - I hope this will not be construed to be against your rules, as I think the whole 12 page essay would make an important contribution to your current thoughts and maybe you can get Bill to publish his latest essay on the gilded opinion pages?Best regards cb2 FredBear (02/21/01; 06:54:30MT - usagold.com msg#: 48656) Strong Dollar Policy Question http://biz.yahoo.com/rf/010221/n21486001.html Today the press is still trying to cover up for Treasury Sec O'Neill's "gaff" last week about the Bushies not supporting the Rubinesque "strong dollar policy."Can someone, ORO, Randy, anyone, explain to me how a country supports a strong dollar policy.Oh, and in case you were not aware, we are not in a recession yet. FredBear (02/21/01; 06:36:35MT - usagold.com msg#: 48655) Supply - Demand Imbalances Will Do This http://biz.yahoo.com/rf/010220/l20528291.html Union Miniere to focus on precious metals growthLONDON, Feb 20 (Reuters) - Union Miniere, the Belgian metals producer said on Tuesday that boosting its precious metals recycling operations will be a key focus over the coming year.``Our precious metals division has started to deliver its full potential. We see significant growth in the next few years in precious metals refining,'' Thomas Leysen, chief exectuive officer of Union Miniere said at a press briefing.Union Miniere recycles scrap at its Hoboken refinery in Belgium, where it recovers metal from old car parts such as catalysts, as well as electronic and electrical components.New EU regulations governing the recovery and recycling of end-of-life parts from these three sectors will allow Union Miniere to tap into a vast supply of recycleable metal, Leysen said.Autocatalysts, which contain traces of platinum, palladium and rhodium, are usually recycled every seven or eight years, so material included in catalysts in 1993/94 is now entering the recycling chain.``This shows the huge growth ahead of us in recycling these materials,'' said Leysen.MARKET POSITIONAt the presentation of its results for 2000 in Brussels last week, Union Miniere said it intended to consolidate its position of leadership in precious metals recycling.The company is also a key producer of both zinc and copper, and has operations based in Europe, the United States and Asia.``In precious metals we don't want to grow more through acquisitions, but through the closure of some of our competitors,'' said Leysen.Leysen added that the closures of a Germany refinery and the East Helena smelter owned by Asarco (NYSE:AA - news) of the United States have caused more scrap to be diverted to Hoboken.In 2000, the precious metals division achieved an operating profit of 30.6 million euros, up from a loss of 300,000 euros in 1999, on capital expenditure of 14.6 million euros.``Union Miniere haven't wanted to disclose how much of their scrap is from autocatalysts and how much is from electronics, but either way there is tremendous growth potential,'' said an analyst for UBS Warburg in London.Union Miniere said although it was not considering any acquisitions, it was also eyeing other opportunities within the precious metals sector.In October last year, the company signed a joint venture agreement with key pgms producer Norilsk Nickel to market Norilsk's cobalt.``Norilsk is not only a major producer of cobalt, there is nickel, and the platinum group metals (PGMS), which may be of interest to us,'' said Leysen.Leysen declined to say whether Union Miniere has already considered working with Norilsk to distribute precious metals.``We are keen to make the joint venture a success and do a good job at marketing their metal. There may be more opportunities with Norilsk that will show up in the future, but at the moment it is too early to say.'' FredBear (02/21/01; 06:24:56MT - usagold.com msg#: 48654) Nanotechnology Creates Precious Metals http://biz.yahoo.com/bw/010220/nj_xenolix_technologies.html Xenolix Reports Precious Metals From Processing Coal Combustion ProductsSUMMIT, N.J.--(BUSINESS WIRE)--Feb. 20, 2001--Xenolix Technologies, Inc. (OTC:XTCI - news), a development-stage precious metals technology company, reported today that the refractory raw material now being tested and processed in its plant is a product of combustion from commercial coal-fired power plants commonly operated by electric utility companies to produce electricity. More than one-half of the electricity in the United States is generated by burning coal. The recently reported precious metal assays by refiners were from this product. Xenolix reports that the reasons for selecting coal combustion products as feedstock for its proprietary precious metals process are that these products are abundant, inexpensive, and readily available without mining or permitting. The Environmental Protection Agency classifies coal combustion products as non-hazardous wastes and in fact promotes their recycling in federal procurement and construction programs. This end product of coal combustion sometimes referred to as ``coal combustion products'' or CCP's primarily consist of: Fly Ash: a light fraction, which is collected in smoke stack flue gas scrubbers. Bottom Ash: a heavier fraction with higher metal content collected in the bottom of a coal-fired boiler. Boiler Slag: solid material that collects throughout the interior of a boiler. According to the American Coal Ash Association, in 1998 electric utilities in the U.S. produced about 100 million metric tons of CCP's. Only 30% of these CCP's are now recycled mostly as additives for concrete. The remainder is disposed of into landfills or sluice ponds at a substantial cost to the utilities. Mr. C. Richard Childress, Director and Executive Vice President of Xenolix warned: ``Through extensive effort, we have found material suitable for our precious metal process in the samples of CCP's we have tested but CCP's from other coal mines and other coal-fired power plants may contain higher, lower, or no precious metals precursor material at all.'' As previously reported, the proprietary nanotechnological processing technology invented and in large part patented by Xenolix seems to work with all precious metals, precursor ores and certain of the materials that have been tested. The process is designed to convert precursor precious metals found in a variety of refractory materials (materials that do not readily respond to conventional precious metals analytic and recovery methods) into material that is suitable for existing outside commercial refining circuits. The Company, on a preliminary basis, estimates that it can process one ton of CCP material for a direct cost (no overhead allocation) of less than $1,000 per ton. Xenolix estimates that it can currently obtain the coal combustion product it needs for a cost of $75 per ton most of which is transportation and handling costs. Xenolix, with its new technology, is recycling CCP material by converting it into what the Company believes may become an important new source of precious metals. If the Company can enhance its recently reported recovery level of 10-14 Troy ounces per ton of non-silver precious metal (gold, platinum, palladium and rhodium) from each head-ton of CCP head material and can reach the minimum 50 Troy ounce per ton grade level of non-silver precious metals required by refiners, Xenolix estimates that it may well then be able to begin operating profitably. The Company is testing a combination of changes to its production plant to reach its 50 Troy ounce per ton goal. The Invisible Hand (02/21/01; 03:06:16MT - usagold.com msg#: 48653) Defendant Summers in Howe's lawsuit Is one of the defendants in Howe's lawsuit Larrie Summers in person?Or is it the U.S.A., represented by Treasury Secretary Summers?Or is it the U.S.A., represented by the person who holds the Office of Treasury Secretary at the moment considered?In other words, is Paul O'Neill at present a defendant or not? working-kirk (02/21/01; 02:55:32MT - usagold.com msg#: 48652) People are nuts $50.00 for paper Another example. If you hang out in ebay, you'll notice people trying to move some of their money into collectables. One of the most popular is Lionel Trains.I don't have the link but I noticed today a lot of people bidding like crazy on a "box". It happened to be from the fifties but the title clearly states it was an empty box for a steam engine. That sold for over $50.00 Last, paper prices are worth more to some people than the real thing including silver and gold. About three months ago I brought a horn on Ebay for $100. It turns out the seller didn't know what he had because it was coin silver with gold engravings. (By the way, in the 20's and 30's a lot of items were made from silver but didn't state it was. It was the same silver coin like Walking Liberties were made of: coin silver 90% silver and the reason was plating was not was developed as it is now. So there is a chance that a metal artwork that is silver metal could be coin silver instead of polished steel. This was especially true of early musical instruments like trumpet and cornets. (And by the way, if you think you can waltz into Ebay and get a steal you have another think coming. You have a fight with the musicians who know how silver inproves the tone of an instrument. I don't think they realize how undervalue silver is - YET!.So I got this very nice horn. About a month later, someone advertise a catalog from the company that made my horn. Natually, I want this catalog. I couldn't get the original.It sold for $150.00 That more than I paid for the horn. What more, it is more than the price of the horn new! Since I lost the auction, I wrote to the seller and ask if he could make a copy for me and I would pay copying costs and mailing. He said sure. So in my copy of the catalog The horn I got sold for about $125. Usually, because of inflation you pay more than the original price. I didn't. Whoever brought the catalog did. And it was just paper. I had the real thing and a gold and silver version. I guess newspapers announcing the death of the race car driver could go for $50.00 as well.However there were some who wanted the real thing. There are diecast model of the race car the driver died in. Hot Wheels sells them for a dollar. I was at a toy store on Sunday and these "Speculators?" were grabbing up every one of these toys they could get their hands on. Today I found out they are going to try to get $20.00 to $40.00 for something priced at a dollar. True, the newspaper had a better markup but I don't think the paper will hold it valve as long as one of these toy cars.So what does the above tell all my fellow goldbugs? Yes at this time paper, whether it is comdex or a catalog or a newspaper is worth so much more than the real thing. Black Blade (2/20/2001; 19:07:33MT - usagold.com msg#: 48625)RE: SHIFTY and news paperSHIFTY you wrote:People are nuts!My brother-in law just told me that our Daytona Beach news papers from Monday are selling for $50.00Black Blade: Kinda like "paper gold" eh? working-kirk (02/21/01; 02:27:33MT - usagold.com msg#: 48651) Getting a physical second skill Well, I am following your advice getting gold and a second career but I may have made a poor career choice.I choosen as a second career to become a musician. If the grasshoppers insist on dancing they might as well pay me instead of a fiddler. I play the trumpetDisadvantages:A lot of musicians tend to starveAdvantages:1.)I can work anywhere once I achieve a certain level of proficiency2.) It is skill that requires both mental and physical abilities. You have to think and you have to have the energy to play all night3.) Last and most important to this forum, it allows a way to invest in gold and silver. Many of you may not have realized but brass instrument that are made from brass are considered student instruments. If you want a professional instrument that has the best musical tone, you will get a silver-plated or gold plated instrument. And the very best tone comes from instrument made from solid silver. It is actually sterling silver mixed in with trace metal to harden it even further. If the day ever comes when they do grab my gold and silver coins, at least I have a sterling silver horn and a gold plated one to still keep my gold and silver holdingsSimply Me (2/20/2001; 19:36:32MT - usagold.com msg#: 48627)> Your recommendations for future employment/self-employment > looks like advice from Depression Era survivors (such as > my mother): "Have at least two skills to offer,> one using your brain and one using your hands, then you'll > never be out of work." and "If you don't have a job...make > one." > The problem with today's hamburger flippers and department > store sales clerks is that they couldn't use a hammer or a > sewing machine with any degree of competence,> so they can't supplement their current meager incomes or > take care of themselves if their employer shuts down. They > will be in the Food Stamp and Welfare lines along> with all the other > Demokrat/Socialist/Grasshoppers/Children of the New > Economy.> Maybe at the heart of all this is a basic difference in > physical gold advocates and "investment" paper pushers.> People who put away physical gold tend to display a fierce > need for independence and an abhorance of trusting their > future welfare to others (especially gov'mint> others). I would be willing to venture that most are the > eldest sibling in their families, expected to take care of > the younger ones from an early age.> Show of hands?....(pause)....I thought so.> While the paper investors are playing the game that the > gov'mint has set up for them, and fully expect the gov'mnt > to catch them if they fall. The babies of the family?> Always looked after and bailed out by big brother/sister.> Given that the above not-so-wild assumptions are generally > true....it's no wonder that TPTB don't promote the value > of saving gold. The gov'mint grows and thrives on> dependents. Sheople are easier to farm than a lot of us > ol' goats (and nannies).> Get physical gold.> Get a physical skill...carpentry, quilt-making, anything!> Eat well and enjoy playing with the children.> simply Black Blade (02/21/01; 02:18:42MT - usagold.com msg#: 48650) Signing of platinum quotas on hold http://www.bday.co.za/bday/content/direct/1,3523,796455-6094-0,00.html Snippit:THE signing of export quotas for Russian platinum group metals had been delayed indefinitely, a Russian finance ministry source said yesterday.Black Blade: Let's see, Russians delay PGM exports. Go figure. This has gone on for more than a couple of years and yet the idiots at the TOCOM and NYMEX still regurgitate that the deliveries are on the way "any day now" - sort like "the check is in the mail" and sucker in a few poor individuals along the way. The Russians are not going to deliver what they don't have. Wake up and smell the coffee. Black Blade (2/21/2001; 2:07:23MT - usagold.com msg#: 48649) STREETWISE -- A Second Chance for Nukes in America? http://biz.yahoo.com/bizwk/010220/zymu8jeqwpxztfnxtviltq.html Snippit:It's one of the great ironies of California's electricity crisis. Guess what power source is getting another look in the wake of the Golden State's shortages? That's right. Nuclear power may have a new lease on life. One of the many reasons California's lights have been flickering is that the state's environmental rules are so strict that they've delayed the building of new power plants. That has put a huge strain on expensive-to-run oil- and gas-burning facilities. But the dirty little secret inside the energy industry is that, at today's prices, many existing nuclear plants can provide power much more efficiently than oil- and natural-gas-fired plants. What's more, with the Federal Clean Air Act strictly regulating emissions around population centers, utilities across the country are turning their attention to alternative fuel sources. And while still politically explosive, nuclear plants provide remarkably clean power generation.Black Blade: Could it be that the extremist environmentalists are loosening their death grip as they begin to lose support among the public? It would certainly be a big help toward mitigating the current and future power crises. Black Blade (2/21/2001; 2:00:10MT - usagold.com msg#: 48648) Varied solutions seen for U.S. natgas crunch http://biz.yahoo.com/rf/010220/n20412936.html Snippit:HOUSTON, Feb 20 (Reuters) - Liquefied natural gas, coal and greater access to federal land all have a role to play in easing a U.S. natural gas supply crunch that pushed prices to record highs late last year, according to energy industry executives.Traditional sources of natural gas, such as Texas and the Gulf of Mexico, cannot keep pacewith rising demand, driven by growing use of gas for power generation, they told the recent Cambridge Energy Research Associates conference in Houston.Black Blade: Can't rely on NG alone for power, however, coal and nuclear power has too much opposition from government agencies and extremists environmentalists. Buy lots of thick blankets. Black Blade (2/21/2001; 1:52:16MT - usagold.com msg#: 48647) 'Almost a Conviction' in OPEC for Oil Cut http://dailynews.yahoo.com/h/nm/20010219/bs/energy_opec_dc_3.html CARACAS (Reuters) - OPEC Secretary-General Ali Rodriguez said on Monday there was ``almost a conviction'' in the oil exporting cartel to cut production ahead of a forecast drop in demand in the second quarter of the year.Black Blade: An OPEC production cut is in the cards. Anything above a 1 million bbl per day cut will strengthen prices, and a 1million bbl per day or less will do nothing. Forecasts of a economic slowdown is that a 2 million bbl per day cut is necessary just to keep prices at current levels. Meanwhile, the real story is NG and the coming crunch this summer as NG is used and storage levels fall ahead of next winter's heating season. Could get - "Interesting." Old Yeller (2/21/2001; 1:13:27MT - usagold.com msg#: 48646) ESOP's fables http://www.prudentbear.com/international.htm If memory serves correct,I recall ORO examining in great detail the downside of the ESOP gravy train should the tech miracle slow down or reverse.Looks like the pigeons may be returning as predicted.Thanks again for keeping us so well informed,and further along the trail,ORO. Black Blade (2/21/2001; 1:08:37MT - usagold.com msg#: 48645) Re: Simply Me Actually I have a background in Special Ed., Earth Science, and Physics. I have been an university instructor/researcher some years ago. Without getting into specifics I have a Ph.D. in one of the sciences and two Bachelors degrees. However, I sold my services to the mining and petroleum industries over the last few years. I originally focused on secondary Special Ed. But decided I needed to make a living as teachers in public education are grossly underpaid. Judging how the public education system has fared, I guess I could say that we get what we pay for. Teaching would be something I would fall back on in tough times, however, I am currently discussing a couple of projects with some people in the petroleum business. I will finish up a project with a client in the mining sector soon. I am of the opinion that the mining business has come to a dead end in the US. I could fall back into mine reclamation work as most of the gold mines in the western US are doomed and will have to begin closing soon. There are a lot of funds tied up in reclamation bonds. Several of the mining towns are beginning to look like "Ghost Towns" and present a lot of cheap housing opportunities for those who wish to move into some nice country. Businesses are closing up on a weekly basis. Like you had posted, it is good to have several skills to fall back on when it comes to "crunch time." Luckily I can do that. Then again, I could just live off of stored goods, savings and investments for a few years instead ;-)Take care. Black Blade Randy (@ The Tower) (02/21/01; 00:12:02MT - usagold.com msg#: 48644) HEADLINE: Japan Posts First Trade Deficit in 4 Years in January http://quote.bloomberg.com/fgcgi.cgi?ptitle=Top%20Financial%20News&s1=blk&tp=ad_topright_topfin&T=markets_bfgcgi_content99.ht&s2=blk&bt=ad_position1_topfin&middle=ad_frame2_topfin&s=AOpNcDRWaSmFwYW4g Balance of trade figures not seasonally adjusted showed a January deficit of 95.3 billion yen following December surplus of 816.1 billion yen, spawning this comment from a senior analyst at Nikko Salomon Smith Barney, Ltd.: "The export figures were really bad. And high-tech companies are cutting their earnings forecasts. We can no longer draw a recovery scenario for Japan."Then, in odd contrast, we have the economy of the United States. We are poised to register a $400 billion year 2000 trade deficit when the numbers for December are posted later today...with net gold outflows of ballpark 360 tonnes. (Be sure to buy your physical while the derivative pricing yet retains credibility.) ViewYesterday's Discussion.
Permission to reprint is hereby granted where the USAGOLD name is cited along with our web address, mailing address and phone number. For electronic reproductions, citing the post heading and the http://www.usagold.com/cpmforum/ website address as the source is sufficient.