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Welcome to the USAGOLD Gold Discussion Archives. 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...   (Discussion Forum Hall of Fame) (The Gold Trail) ("Thoughts!" by ANOTHER)   The opinions posted by all guests are expressly their own and do not necessarily represent the views of the management or staff of USAGOLD - Centennial Precious Metals. The hosting of the public discussion shall therefore not be construed as an endorsement by USAGOLD - Centennial Precious Metals of any of the opinions posted here.

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ARCHIVED DISCUSSION FROM 4/28/1999
All times are U.S. Mountain Time

View Yesterday's Discussion.

SteveH (4/28/99; 21:23:01MDT - Msg ID:5301)
June gold now...
$284.30.

Yes Gandalph, I did see the XAU.

Today, I attended a pitch on 401K's. I don't have one, don't belong to one, but wanted to know about them.

I sat through a number of presentations on ERISA and Safe Harbors and felt at home with the use of Acronyms but didn't really understand the talks as Acro's didn't seem to connect up with the nyms.

My ears perked up though when the last presenter threw a slide up on the computer projector that showed the amount of funds currently in the average 401K account now. $42,000. He said, "That is more than the average equity in homes in America."

He caught my interest. I asked, "Can a 401K person borrow or use that money in any way?"

A previous presenter answered, "Ah Yes, they can borrow against it. It can't be used for collateral against a loan but it can be borrowed and that money put down on a house."

"What is the maximum amount that can be borrowed against the 401K account?" I asked.

She said, "50%."

Hmmm, I thought.

I said, "Are there a lot of people who borrow against it?"

"People do borrow against it, but we don't recommend it. There can be penalities. We have to cut 1099's if they don't pay it back. They can loose their right to participate in the fund if it happens too often," she said.

I kept quiet for a bit. The presentation went onto the Fund Families and to the variety or breadth that is normal to a 401K account. It seems that a 401K (Trustee-managed anyway) must have a diversity of funds to choose from or the fund manager can get sued. A self-managed account was different in a sense because a person can call up and move their money around more easily. They touted the up-to-the-minute account checking feature of some plans. In other words, a 401K account holder can call up or dial in to get current account balances. They said lots of people like to do this.

My ears perked up again. "Excuse me," I said, "Do you mean to say that lots of people call in for their balances? How common is it for someone to do that?"

"Very common," she said.

"What is the spread of 401K money between bonds and stocks?"

"I'd say about 50-50," he said.

"So you mean to tell me that if the stock market started to head south that people would know instantly if they were loosing money?" I asked.

"Yes, if they could get through. They can't do redemptions if they can't get through either. That is why we are telling our people that they will be working during the holidays [Christmas and New Years] so our clients will have someone to answer the phone and field questions," she said, "If people can have their questions answered then they will be less likely to redeem their funds into cash."

He said, "That is why I tell people to be in the 401K for the five year or longer period of time. The stock market over 30 years shows mostly upward growth only with minor dips. Y2K is unprecedented though. There hasn't been any other period of time to relate this too. It is a real crap shoot with what people might do."

"I see," I replied.

"Do you think that the ability to call up and get up-to-the-minute stock prices on the 401K is possible going to be your own worst enemy?" I asked.

"If we have people on the phones that can answer their concerns, I think it will just be a big non-event," she said.

He said, "Yeah, the market may go down significantly towards the end of the year but on Jan 2, 2000 it will go up just as fast, when they wake up see that nothing is changed and everything is ok."

So what was a relatively mundane discussion on 401K's turned out to be a world-class discussion on Y2K, redemptions, and the thought processes of an International 401K house. It seems that the achilles heal of 401K plans is the manner in which a significant amount of plan holders monitor their portfolios on a daily basis. When the market appears to them that they are going to loose a significant dent in the $42,000 average balance they carry now, it would seem they would redeem quickly to go into cash. But then if they can't get through on the phone to redeem I guess they will just have to hang on until they get through. A recipe for disaster or what? Well, the discussion covered other areas, including the influence of 401K money on the market. Somehow though I got the feeling that they would rather I had stayed home. Frankly, I was glad I came.



Al Fulchino (4/28/99; 21:20:43MDT - Msg ID:5300)
Options and a Thank you
First, Mr M.K. thank you for this forum.

Second, I know this post is late, so it probably will not reach many, but I feel it is important and needs to be discussed. Please well informed members tell me what role and opportunity that precious metals options have in this market. This market is going to be pulled and tugged in the next 365 days. Are there opportunites? How would you take advantage of them? Does y2k fears relegate us to take posession only? Thank you, all for your input past, present and future - Al

USAGOLD (4/28/99; 20:22:25MDT - Msg ID:5299)
Mr. Murphy Goes To Washington; Potential Congressional Anti-Trust Investigation of Long Term Capital Management
Subject:
Michael- feel free to post this if you want if no one else does
Date:
Wed, 28 Apr 1999 21:33:38 EDT
From:
Midasnh@aol.com
To:
cpm@usagold.com


To the Internet Gold Family-GATA and Congress

Midas du Metropole

April 28, 1999 - Spot Gold $282.70 up 70 cents - Spot Silver $5.25 up 8 cents

Technicals -

The market that can never go up. At least, that is what the speculators, in
the short term, and the bullion dealers, in the medium term, think. The funds
began piling in on the short term again when gold failed to breach $285 on
the upside. The open interest has now risen to 204,378 contracts which is a
new high for some period of time and is an indication of bearish confidence.
The price of oil is soaring ( $18.50 per barrel ), silver has come back
strongly and risen 40 cents in just a number of days, bond yields will not go
down and the XAU is on a rock and roll ride. Normally, this would be a set up
for the speculators to be MEGA long gold. Instead, they are MEGA short. Thus,
if there ever was a recipe for the gold price to take off with space ship
velocity to the upside ( out of nowhere ), it is now. Practically no one
thinks that can happen and that is just why it should.

Silver is more than "jump back jacking". It is "really slam whacking" the
silver shorts. Today, silver moved nicely higher even though the silver
stocks on Comex were up over 1.8 million ounces on Tuesday night. The market
shrugged off that news in stride, and that is what bull markets are all
about. Today, they shrank again back down to 77,659,261 oz. Quietly, they are
going bye bye. We continue to maintain our very bullish posture and look for
a very spectacular upside move in the weeks to come.

Fundamentals -

Feedback to the Café about my trip Washington and meetings with Jim Saxton,
Chairman of the Joint Economic Committee, the Staff Director of the Joint
Economic Committee, the senior macro economist of the Joint Economic
Committee, the Senior Counsel of the House Banking and Financial Services
Committee and the Staff Director of the Capital Markets Subcommittee

Washington is in full bloom this time of year and it is extraordinarily
beautiful and bustling with activity. One cannot help but be inspired walking
around the Capitol while gazing at its majestic buildings and thinking of
what they stand for. It is one great country we have here, with all its
flaws, and an awesome, proud feeling came over me as I traversed from the
Capitol building to the Rayburn Building, to the O'Neill building, etc.
America is special because anybody can do anything here. It is a land of
individuals and we are very lucky to be living in such an environment. I
thought as such as Mitch McConnell, Barney Frank, and other House of
Representative Members sauntered by - all just part of the crowd.

My first meeting was with the Staff Director of the Capital Markets group
that is investigating Long Term Capital Management. I cannot get into too
much about this one, but I can tell you that I almost fell off my chair when
he told me that they were investigating Long Term Capital Management for
"anti-trust" violations. It was not my place to probe further. But, now we
understand why Long Term Capital Management has reacted so expressively to
the Gold Anti Trust Action Committee and is sending our attorney a letter. I
am sure that we are just a coincidence that happened to show up at the wrong
time for them, but no one I have spoken on Wall Street had heard that
anti-trust activity is the reason a Congressional subcommittee is looking
into their previous operations.

Later on, the Senior Counsel of the House Banking and Services Committee came
by and we had a long session about the "the sizeable gold borrowings". He
took copious notes. I stressed to him that it was our opinion that a danger
had been created by speculative gold borrowers who had become so greedy that
we believe that there are now about 3,000 tonnes of these loans out there.
And, that the total gold loans may now be 8,000 to 10.000 tonnes. I stressed
that the borrowers were making a fortune with virtually interest free money!
But, in doing so, they have created a potential banking disaster. If the
price of gold were to unexpectedly shoot up and go sharply higher ( like the
price of oil did the past two months ), the gold borrowers could not find
3,000 tonnes of gold to pay back their loans, even if they wanted to. Panic
could ensue. Major banking defaults may occur and they could have 10 Long
Term Capital type, systemic risk problems on their hands, all at once!.

I told him that I was here today to alert the Banking Committee to this
potentially very serious problem and that this situation could be likened to
the Savings and Loan crisis. After the Savings and Loan crises erupted, it
was queried by many as to why someone did not do something about it before it
became a crisis. I told the Staff Director that there is no reason for
history to repeat itself. NOW, is the time for the Banking Committee to ask
the bullion dealers and major financial institutions what their gold books
look like; ask them to reveal the gold books ( confidentially ) to a banking
or economic committee. If they will not do so, ask why? If they do and we are
we are right, somebody had better blow the whistle. If we are wrong, then it
was a waste of just a little time and a few phone calls.

We discussed the gold loans issue in great detail. You know much of our
reasoning and evidence, so there is no point going into all that. What is
important is that at the end of the meeting the Senior Counsel got up
grinning and said, "Geez, got a small order here, have to save the banking
system".

The next meeting was with Jim Saxton, the Staff Director of the Joint
Economic Committee and their senior macro economist.

Jim Saxton is one class act. We had some fun talking about my cousin, Bobo
Sullivan, who also has been a force in New Jersey Republican politics for
many years as he ran the election campaigns for Bush and Reagan in that
State. Jim just got back from a fact finding mission in Yugoslavia and now is
also preparing legislation to reform the Exchange Stabilization Fund by
introducing the, ESF Transparency and Accountability Act.

"This legislation will end the legacy of secrecy and obscurity at the ESF",
Saxton said in his press release. The ESF was established in 1934 at a time
when the dollar was pegged to gold, but has survived into the current era of
flexible exchange rates despite its lack of clear objectives and its
secretive operations".

"This legislation will end the legacy of secrecy and obscurity at the ESF,"
Saxton said. "We need this kind of secrecy in our nuclear weapons programs,
not in our international economic policy, but most Americans have never heard
of it. The American people have the right to know how billions of their tax
dollars are being used. Excessive secrecy is part of an even larger problem:
the lack of accountability to congress or the American people."

I told Jim that GATA was concerned about the lack of transparency in the gold
market too and that we felt there were many shenanigans occurring in the gold
arena. GATA applauds his efforts, and intended legislation, which could cut
off another potential source of manipulation of the gold market.

Most of the discussion was about: 1) what GATA felt was the real reason
behind all the IMF proposed gold sale P R commotion and 2) GATA's opinion
that gold loans had become so large that they had become a danger to the U.S.
banking and financial system.

I went on to say how large we felt the gold loans had become and that if
something were to happen to cause the price of gold to rise sharply, and the
gold borrowers wanted to get out of their gold loans and pay the gold lenders
back with physical gold, that it would be impossible for them to do so in a
short period of time without the price of gold skyrocketing. With 1998 mine
supply at 2529 tonnes in 1998, it just cannot be done. I followed with what I
had told the Senior Counsel of the Banking Committee, that I felt the
resulting turmoil could produce 10 "systemic risk problems", not just the 1
that our Fed had with Long Term Capital Management. What would the Fed do in
that case?

It was stressed by me that almost no one thought there could be a Long Term
Capital Management either; that even the Central Bank of Italy invested in
Long Term because of the supposed lack of risk in investing with them. The
biggest and the best invested in Long Term. "And look what happened", I told
Jim. I then pointed out that it is these same "biggest and best" that are
borrowing gold at 1% interest rates and are thus, in effect, short gold to a
staggering degree. In essence, they are investing all over the place for
practically free ( as long as the price of gold does not go up ). I asked him
if he would like to be able to go his bank and take out virtually an interest
free loan? Did he think his investment performance would look pretty good if
he could do so? That is what I told him I felt was behind all this IMF gold
sale talk spewed forth by our administration, the bullion dealers, Wall
Street and anyone else who's arm they can twist. I do not think it proper to
recant any of his conversation, but I think I can comfortably say that he has
a great smile.

All 3 committees want to very much hear whatever more we have to convey on
this matter.

Speaking of the bullion dealers. Deutsche Bank, The Hannibal of Hannibals in
Lechterland, had a conference call today with renowned dealer, Charles Von
Arenschildt, featured as the speaker. Deutsche Bank Securities has one of the
largest bullion dealing operations in the world. It was most revealing.

Key points from V.A. and Midas' thoughts:

1. V.A.- The proposed gold Swiss and IMF gold sales are done deals. But that
it won't hurt the market much because the Swiss sales will be 5 million
ounces and spread out over 10 years or so. And, the IMF sales are already in
the market place as far as pricing is concerned. Since this was the first IMF
financial activity of this sort in some time, he felt they would be no larger
than the proposed 5 to 10 million ounces, regardless of recent calls for
higher ounce sales.

Midas- Having visited the U.S. Congress yesterday, I can assure Charles Von
A. that they are not a fait accompli. Not if Jim Saxton and a growing anti
IMF group gets there way. People in other countries may think just because
administrations want something, it will happen. Not necessarily so in
America.

The last Swiss vote was very close. The final determination on Swiss gold
sales is very much in doubt. However, we would expect Hannibal Lechter to say
nothing less than he did. Party line all the way.

2. V. A - Investor demand has been severely curtailed because of this IMF and
gold sale talk It has created extreme negative sentiment. But, he said demand
and sentiment would pick up later in the year when Y2K fears come into play.

Midas - No S, Sherlock that all this negative talk has hurt the gold market.
It surely has scared off investors to some degree. Even Japan ( had to be arm
twisting ) came into the "sell IMF gold camp" yesterday.. There must have
been 10 major PR releases the past 3 days about the subject. It is clearly an
orchestrated effort by officialdom to try and talk the gold price down. Even
Jim Saxton readily admitted to that.

3. V. A. - ( in response to the FIRST question by the Deutsche host moderator
which just so happened to be about GATA and its "quackish like efforts" ) -
V. A. said that there was nothing to it ( this type of jungle story ). There
is no orchestration, just dealers all telling their clients to sell rallies
at the same time. Coincidence. Just that there are 10 sellers for every buyer
for them. He said that they would really like the market to go up and their
business would be better if that were the case.

Midas - Maybe true that the bullion department would do better. Who am I to
say? But that would dwarf what they are making by investing in today's
markets with virtually interest free gold loans. Who is kidding who?

4. V. A. - Gold will trade in a $275 to $290 range until later in the year
when we could a big bull move to just over $300. However, there is a danger
because of call structures, etc, that if the price of gold could get above a
certain point, it might "accelerate".

Midas - That is what GATA told Congress; that there is a real danger here and
it has been created by the bullion dealers and some greedy N.Y. investment
houses. V. A. says accelerate. GATA says buying panic. This gets complicated,
but as we have reported to you before there are thousands of naked calls that
have been written ( many of the humongous Y2K calls in the November Comex
contract are a good example ). We understand that central banks have
significant call option exposure above $315. Then there are the gold loans.
Then there are the forward sales by producers that have enhanced their
forward sale prices through complicated call derivative enhancements.
Naturally, the bullion dealers have encouraged this income producing
activity. Some producers, being told there is no real price risk to the
upside by the bullion dealers, have loaded up with these "pennies from
heaven". However, for every ying, there is a yang. If the unthinkable
happens, they all will panic and try to cover these calls and shorts at the
same time. Boy oh boy!

5. V. A. Gold demand in the Far East has not recovered much. V. A. said he
followed Gold Fields Mineral Services opinion on this one.

Midas - V. A. come on. Sounds fishy to me. You are one of the biggest dealers
in the world with extensive contacts in the Far East and you come up with a
lame answer like that when questioned by knowledgeable listeners that say
gold demand is really improving in that part of the world. We give you a "D-"
on that answer. Could it be that you cannot bear to come out with any
commentary that is really bullish?

6. V. A. - ( this is the piece de resistance ) The total gold loans by the
central banks was about 4,000 tonnes by the end of last year. ( our camp says
they are more than double that amount), BUT, "that these loans have all of a
sudden risen to 10 to 15% of that amount ( 4,000) in the last 3 months".

Midas - Earlier in the conference, Charles Von Arenschildt stated there has
been very little producer activity the past few months. That means that HE
says that there were about 400 to 600 tonnes of gold lending to gold
borrowers ( speculators ) in just the first 3 months of this year. That is
why the gold price has not gone up. The bullion dealers are fostering a
potential banking disaster by allowing excessive gold borrowings and THAT IS
JUST WHAT WE TOLD CONGRESS. Hoisted on your own petard,C.V.A.

Potpourri and the Gold Shares

There is action in "them thar hills". The XAU has climbed to 72.45 and was up
another 3.08 today and, if the gold market is not being capped, is signaling
that a big move up in the bullion market should not be too far off. Either
that, or as I told my associate, John Meyer, they stock market guys don't
know that the fix is in. Love it to be the former.

Our key bullish XAU technical points were 60 and 63. They continue to prove
to be right on numbers. Yesterday, the XAU closed above its 200 day moving
average of 69 so today's follow through on a dull day in the gold pits was
very encouraging.

With all the blustering about IMF gold sales, world finance ministers met in
Washington and failed to agree on gold sales by the IMF Fund. There was no
mention about gold in their official communique after the meeting. Naturally,
this got very little play. I wonder why?

To rap it up. It is ironic that GATA has the attention and encouragement of 3
Congressional committees and can't get one mainstream newspaper to educate
its readers to a potential nightmare financial problem. On my way to
Washington I looked for Janet Whitman's Dow Jones newswire story that she did
on GATA. It was not in the Wall Street Journal, nor the LA Times, nor USA
Today, nor the NY Times, nor the Washington Post. Shameful cowardice.

Matt Drudge, John Crudele, Woodward and Bernstein, where are you?

Midas

aka, Jungle Fighter, "Guerilla Squadron"


Aragorn III (4/28/99; 19:53:44MDT - Msg ID:5298)
Sir, I tip my hat to you...turbohawg (4/28/99; Msg ID:5289)
"This move will likely reinforce in the collective mind of the herd the necessity of gold in a solid financial structure, much to our future benefit.

And most importantly (in my mind), a sharp revaluation of assets will increase the relative wealth of those who own gold possibly many-fold, thereby further empowering many of the very people (at least in this country) who are the adversaries of the anti-freedom banking cartel."

These are good thoughts, and we shall see (again) how long the philosphically correct can prevail with market capitalism under a representative democracy...the voting masses growing ever-more reluctant to "leave the nest". It is easier to vote for a free lunch than to work for one.

As long as monetary discipline can be maintained, the elected representatives will find their hands to be tied and the purse-strings guarded against offering many rewards in exchange for no effort. Yes, we shall see...

got resolve?

Richard, Oregon (4/28/99; 19:13:11MDT - Msg ID:5297)
No49
I was so saddened this afternoon to learn of the shooting in southern Alberta. We too in Oregon thought it would never happen here but, now we're are just one of many. I have noticed the tolerance for threats at schools in the last week has been lowered to zero. Students with big mouths filled with threats are being suspended from school with (hopefully) further followup and watching. Does this mean they'll just act now without the threats? I pray this is the last but fear it is not. Richard

TownCrier (4/28/99; 19:06:48MDT - Msg ID:5296)
IMF's Fischer offers contrarian view on forex
http://biz.yahoo.com/rf/990428/b1e.html
IMF DepDir Fischer says euro will survive, sees fewer world currencies due to instabilities of fixed and floating systems.

TownCrier (4/28/99; 18:57:46MDT - Msg ID:5295)
Europeans complain U.S. treats them as juniors
http://biz.yahoo.com/rf/990428/bz7.html
Very interesting! A little sibling rivalry going on...

Richard, Oregon (4/28/99; 18:24:08MDT - Msg ID:5294)
What's Does It Mean??
Not sure about that subject I typed - couldn't think of anything else.

What I want to know - We've gotten into the old British movies, i.e. Masterpiece Theater, and some of the newer ones on Public Broadcasting, i.e. Mystery. Often they mention names for their money, i.e. schilling, pense, bob, crown, etc., etc., etc. (not sure of those spellings). Can anyone furnish a list with approximate US$ conversions?? Just curious!!

NORTH OF 49 (4/28/99; 18:18:55MDT - Msg ID:5293)
What is this!!?? An epidemic???
I know this is off topic, but so stunning, I felt I had to post it.
After the tradgic events in Littleton, to say that we Canadians were shocked, stunned--I don't know how to even describe it, is an understatment. Today were presented with our own version.
Four hours ago, in a little town of 7,000 in southern Alberta, a fourteen year old in a blue trenchcoat walked into the local high school and opened fire. One dead and one in critical conditon before the phy. ed. teacher (a offduty policeman) tackled him, preventing further horror.
I didn't think this could happen here.

No49


beesting (4/28/99; 18:08:16MDT - Msg ID:5292)
@ NORTH OF 49 and Aristotle
Not sure $1.005 bln means, one billion five million or one trillion five billion,anyway its a lot of $$$$$.

Mr.Aristotle your "REPO" explanation was right on the money.
I looked in my A to Z of investing book(a guide to investing terminology)and your explanation was better than theirs.

Most of the major Gold mine stock rose today with exceptionally heavy volume.

We watch this new Gold market together...........beesting

High Density (4/28/99; 17:52:43MDT - Msg ID:5291)
Germains anticipating something?
Just a moment to water my horse and read the discussion!

Hello to all. Most curious. From the sounds of the IMF spring meeting all is not well. Interesting comments from Germany's finance minister, Eichel. Could his comments be interpreted as "Germany is anticipating an 'excessively large adjustment' to the United States stock markets and dollar." I pop back in from the woods and this is what greets me! Sounds like our partners are holding us over the barrel. We'll see. Couldn't think of anybody better than Heir Clinton and his cronies to pilot the ship into the iceberg!

Christine (4/28/99; 17:31:32MDT - Msg ID:5290)
@Turbohawg--If it turns out as you suggest,
Then there is room for hope. IMHO, they are in firm command of what is going on. Many have speculated that this period of low gold prices was used by those in power to aquire even more gold. To what purpose? So they can further control that also. My belief (hopefully wrong), is that they have created this monetary catastrophe for their purpose of gaining further banking control over us all. I guess I am becoming philisophically resigned.

turbohawg (4/28/99; 17:05:55MDT - Msg ID:5289)
Hey Christine
Do I detect a wee bit of resignation in your posts regarding the fact that many of the same people are behind both central bank systems ?? If so, I share your angst ... as we watch the worldwide collapse of the welfare state the threat of its regeneration will be there as long as there is a central bank. But I would hasten to point out that a good case can be made that there are many more positives than negatives to this alleged reserve currency transistion.

First of all, with consumers, corporations, and all levels of govt having snorted long lines of credit courtesy of the US Federal Reserve credit cartel, this country is already perilously close to monetary overdose. Evidence in the wake of the LTCM bailout of last fall suggests our financial system was about to face rigor mortis. So at a minimum, moving to a new reserve currency isn't going to make things worse. Some positives include:

The market undoubtedly forced these bankers toward gold. Having to use gold as a facade for credibility to create the ECB not only points to the strength of gold as a foundation, but it points implicitly to the bank's weakness without it.

This move will likely reinforce in the collective mind of the herd the necessity of gold in a solid financial structure, much to our future benefit.

And most importantly (in my mind), a sharp revaluation of assets will increase the relative wealth of those who own gold possibly many-fold, thereby further empowering many of the very people (at least in this country) who are the adversaries of the anti-freedom banking cartel.

The last two points suggest that just maybe these banking gods are unwittingly creating their own Trojan horse nightmare.







TownCrier (4/28/99; 16:22:25MDT - Msg ID:5288)
Bridge NY Precious Metals Review
By Melanie Lovatt, Bridge News
New York--Apr 28--COMEX May silver futures settled up 7c at $5.253 per ounce
after jumping to a 2-week high of $5.28. Silver started to climb after the 0930
ET option expiry and gained momentum on fund-buying. Jun gold trailed limply
behind silver, settling up 60c at $284.10 per ounce. Jun palladium went its own
way, settling down $15.50 at $335.50 per ounce after slumping to a 3-month,
dragging platinum in its wake.

Gold saw a small climb today on the back of silver and was also helped
earlier today as the dollar's recovery against the yen appeared to be running
out of steam. "The options expiry in gold lent
little bit of support and the dollar weakness was helping," Steel noted.
However, traders said that statements from politicians and International
Monetary officials have kept pressure on gold prices this week. Last night IMF
Managing Director Michel Camdessus that the International Monetary Fund will
"certainly" sell some gold in order to finance the expansion of the program to
benefit indebted countries. He said that support for gold sales was practically
unanimous among the Interim Committee members, but said that an agreement had
yet to be reached over the volume of gold to be sold. While some
countries have proposed the sale of 5 million ounces of IMF gold, the US has
suggested 10 million ounces.

Reprinted at USAGOLD with permission. For details please go to:
http://www.crbindex.com/
No further reproduction without written permission

USAGOLD (4/28/99; 16:09:07MDT - Msg ID:5287)
Did IMF meetings end in failure?
http://www.abcnews.go.com/sections/business/DailyNews/g7_990428.html
-- As the meetings end, we find the U.S., Japan and Europe sniping at each other.
-- Rubin irritated that the United States losing jobs due to record trade deficits. Wants Japan and Europe to do more.
-- Participants could not resolve how to go about selling gold or how much money each nation should provide for debt. relief.
-- All very reminiscent of the Denver G-7 meeting after which the Japanese threatened to sell bonds and buy gold.

TownCrier (4/28/99; 15:53:28MDT - Msg ID:5286)
FWN Closing NY Metals
New York-April 28-FWN--
June gold added 60 cents to $284.10, ignoring a number
of reasons to go still higher, said one trader.
"Gold is a mystery," he said. "It should have had every
reason in the world to go up, but it didn't. I think the
market is too scared to see what kind of selling is up there
if it does indeed rally.
"It should have gone up because of the silver. It
should have gone up because of the crude (the June futures
are up 65 cents). It should have gone up because it also
broke a trendline, and it should have gone up because of the
Aussie dollar. It should have gone up because of the rally
in the gold stocks (the XAU index is up 2.28 points). It
should have gone up because open interest is over 200,000
and the majority of them are short."
Support in the June gold futures was put at $283, while
resistance was listed at $285.50.

(c) Copyright 1999 FWN Reprinted at USAGOLD with permission. For details please go to:
http://www.futuresource.com/internet.shtml
No further reproduction without written permission from FWN

The Stranger (4/28/99; 13:50:15MDT - Msg ID:5285)
Mr. Aristotle
Ari...your grasp of banking really impresses me. Also, your writing skills expose you as an educated fellow. I can only guess who I am dealing with, but you come across as a banking executive with an independent streak.

Gandalf the White (4/28/99; 12:04:35MDT - Msg ID:5284)
Ay SteveH --- do you see what I see ?
can you sing that Don Ho song --- "Rising Bubbles" ? That is what the 10 minute XAU chart on Quote.com tells me !!
<;-)

Aristotle (4/28/99; 11:14:03MDT - Msg ID:5283)
Repo's
Hey there, beesting.
Basically, banks have fractional reserve lending requirements that they must maintain at least 10% of their total demand deposits (checking accounts) on reserve as vault cash or on deposit at the Federal Reserve System of banks. Because this required reserve money does not earn interest, banks keep this level on deposit as close to 10% as possible (averaged over two week periods). Any extra reserves tend to be invested in things that generate money, such as U.S. Treasuries. These act as interest bearing savings deposits for the bank. When the various banks need to withdraw money from 'savings' to satisfy customer demand for cash and to replenish their required cash reserves, the Fed repurchases these US Govt securities for cash...essentially adding the needed reserves back into the banking system. Hope this gets you started. ---Aristotle

NORTH OF 49 (4/28/99; 10:38:33MDT - Msg ID:5282)
Beesting
If I understand the question correctly, I'm reading 1.005 bil. not 1,005 bil.--which, to me still seems like one h-ll of a lot of $!.

No49

TownCrier (4/28/99; 10:31:20MDT - Msg ID:5281)
Duisenberg's U-turn on euro
http://news.bbc.co.uk/hi/english/events/the_launch_of_emu/euro_latest/newsid_329000/329996.stm
Summarized nicely by the BBC

beesting (4/28/99; 10:16:16MDT - Msg ID:5280)
Can someone explain this news headline?
http://biz.yahoo.com/rf/990428/2b.html
Fed says Overnight System Repos Total $1,005 Billion.

The Federal Reserve said it added $1,005 Billion of reserves to the banking system through Wednesday's operation of overnight repurchase agreements.

Reprinted without permission........beesting

CoBra(too) (4/28/99; 9:56:51MDT - Msg ID:5279)
Tidbits
Having been tied up in contributing my usual tidbits for a German gold mining monthly, I sense a growing urgency within all participants of the world markets.
IMF - Worldbank spring meeting inconclusive as to the state of the global economy. Currency turmoil peaked for most SE Asian-Latin American countries - economies slowly improve - participants have postulated,IF not anything unforeseen hits (like Rusia defaulting on its $ loans)or any other extra- "ordinary" Tsunami of LTCM proportions.
While paper markets charge ahead, unruffled by historically unparalleled valuations. Hitherto, advocates of sound economics and monetary discipline converting in flocks to the camps of new era mainstream doctrine, as "Ersatz"- religion blind the herd's view of (future) reality.
RR and Gold Sucks IPO may well mark the top of the paper cycle, as experienced 70 years ago. Meanwhile, as A & FoA predicted, the gold (mining) markets pick up steam and don't give a dam about ongoing rhetorics of major sales of the precious some time in the future.
Sentiment is definitely turning! - I'll better conclude this post - almost feel like Joe Granville years back - repent-remember?
best CoBra(too)



TownCrier (4/28/99; 9:53:36MDT - Msg ID:5278)
Bridge Gold News: Russia and Japan
Moscow--Apr 28--Russia's state savings bank Sberbank has concluded more than
80 contracts for the purchase of more than 20 tonnes of gold from domestic
producers this year to date, the bank said in a press statement today. By Vadim
Kotikov, Bridge News

Washington--Apr 27--Japan's Finance Minister Kiichi Miyazawa today said
Japan is offering the International Monetary Fund a plan on a possible sale
of gold as a way to secure necessary funds. Miyazawa, at the Interim
Committee Meeting at the IMF, provided the Japanese government a basic
outline about the review of the HIPC initiative, leaving details for
today's discussion at the Development Committee meeting. Bridge News

Reprinted at USAGOLD with permission. For details please go to:
http://www.crbindex.com/
No further reproduction without written permission

Tomcat (4/28/99; 9:46:55MDT - Msg ID:5277)
FOA



"If a foreign national finds his local banks /economy shut down or failing because of Y2K, how will he exchange / transfer his money into an operating US bank?" Ans: In Nov/Dec he will be able to do so. His objective will be to maintain his wealth. After Jan 2000 it will not be so easy. However, in Nov/Dec his actions will contribute to a devaluation of his local currency.

"Conversely, if that person has saved himself by placing their assets into a dollar account at a US bank, beforehand, how will he bring this money home for self sustaining
purchases / investing if Y2K has destroyed the local digital banking system? In Nov/Dec he will be concerned will maintaining his wealth and will shift to a US bank or to gold. To get by day to day he will have to convert some of his dollars or gold to his local currency which will be on a continuous devaluation.

"Physical gold will be much better as history and recent
world events have shown that real gold can and does trade worldwide "without" a functioning exchange market or banking system!" Ans: I agree wholeheartedly. My opinion is that in Nov/Dec the dollar will gain but after the 2000-tranisition when new rules are needed the NFO will have to resort to some kind of gold/dollar union that will prevent an immediate invalidation of the dollar. Perhaps it will be a controlled devaluation. I agree with your gold logic that dictates the only answer lies with gold. But we might disagree on how long it takes to make a conversion to a gold system. I just don't know. My point is that at least some things can be predicted for the Nov/Dec period but that predictions after 2000 are very tough to make.

"Also! Please understand that the dollar exists as a world reserve currency because all dollar denominated
reserve debt (treasury and others included) is maintained through timely interest and principal payments. This servicing of reserve debt requires a "functioning" foreign exchange system, whereby foreign currencies can be converted into dollars for payment. No payment brings debt default and dollar reserve destruction." Ans: This is similar to what occured after WW2 and why the Marshal Plan was created. In Nov/Dec the system can will hold together but with massive devaluations of some currencies. After 2000 I believe a New Financial Order will be needed and that the US will play a big role in controlling it.

"Also, the tremendous increase in gold values that Y2K would bring would more than offset any loses of paper reserves that currently makeup the ECB system. Their debt is not held worldwide as a reserve function for the Euro. The ECB "System Banks" could eventually reopen with a manual gold based Euro currency. So could the dollar, but at a greatly reduced
function as the ratio of dollar destruction as a factor of gold reserves is far out of balance!" Ans: FOA, this is a brilliant point. It really has me thinking. The gold dollar inbalance won't dominate factors in Nov/Dec but after 2000 it will dominate! Perhaps it will be the solution to this problem that will bring about the New Financial Order.

FOA, I believe your grasp of fundamentals allows you to make valid extrapolations beyond 2000. I don't have that ability. All I can do is take a stab and predict the Nov/Dec 99 period. Your continued insights though are much appreciated.

Let me add in closing that I believe that the post-y2k reconstruction period is the thing to predict and that it is my hope that the y2k destruction will open the door to a gold based system. I honestly believe their will be a New Financial Order. It bothers me to think that new financial orders come after large wars; but it is a fact. The BIS came from WWI. The Marshal Plan brought in a new financial order (the US!) after WW2 and now there will be an NFO brought in by the post-y2k reconstruciton.

TownCrier (4/28/99; 9:46:46MDT - Msg ID:5276)
BoF's Trichet says Europe badly needs reforms
http://biz.yahoo.com/rf/990428/81.html
euro seen as helping facilitate structural reforms

TownCrier (4/28/99; 9:41:14MDT - Msg ID:5275)
USDepTreaSec Summers
http://biz.yahoo.com/rf/990428/1w.html
Indicates U.S. must boost savings rate to cut dependence on foreign capital, and that growing U.S. current account deficit was yet another weakness.

TownCrier (4/28/99; 9:32:17MDT - Msg ID:5274)
BoF's Trichet says ECB must ensure stable euro
http://biz.yahoo.com/rf/990428/7m.html
Stresses euro's clear potential for appreciation

TownCrier (4/28/99; 9:27:57MDT - Msg ID:5273)
S&P affirms Kazakhstan ratings--negative outlook
http://biz.yahoo.com/rf/990428/yg.html
Let us revisit Kazakhstan... One month after devaluation of the currency as a result of letting it free float.

...And now you know The Rest of the Story.

TownCrier (4/28/99; 9:12:40MDT - Msg ID:5272)
Greenspan repeats objections to bank reform bill
http://biz.yahoo.com/rf/990428/1g.html
Give 'em hell, Al.

USAGOLD (4/28/99; 9:09:30MDT - Msg ID:5271)
Stranger....On the Canelo comment to "ignore Barron's"....
Just a short note to say that Adrian van Eck agrees. He basically says the slowdown is an attempt to smooth the huge -- out of the box -- money supply increases earlier.

Says van Eck with reference to October - February money growth: "...it brings the total to new money since October first -- exactly five months -- to $330 billion. That is one one-third of a trillion dollars. Believe us when we say this puts the total money created under Jimmy Carter deep in its shadows. And that money was enough to send American inflation shooting way over 10% a year. Yet the spin doctors hard at work on CNBC and in Business Week, Barron's and the Wall Street Journal have managed to convince just about everybody that money does not matter anymore, and inflation is dead."

Aristotle (4/28/99; 8:56:17MDT - Msg ID:5270)
FOA commentary
Thanks for the explanations. With full awareness that my impartial judgement might tend to be clouded while reading ideas that are what I'd LIKE to believe are true (and similarly, a person tends to discount ideas that are counter to their best interests), I must say that given the the present state of world affairs, I must indeed accept your information as valid indications of developments before us. There are simply no other legitimate alternatives to help the world out of the corner into which it has painted itself.
Many people might be inclined to disagree, saying the U.S. won't allow this to happen, and will go to war over it. Well, if this nation will stoop to that level of thuggery--forcing the world to accept its paper as payment, then all hope is already lost for a bright future. Not only do I discount that notion because it is counter to my desires, but I discount it on the legitimate grounds that we would lose as much or more by this action to destroy our trading partners. Renegotiation of trade settlements seems by far the more plausible scenario, and I appreciate your past efforts to map this out. ---Aristotle

USAGOLD (4/28/99; 8:50:38MDT - Msg ID:5269)
Today's Gold Market Update
MARKET UPDATE (4/28/99): Gold rallied this morning after Japanese Finance Minister
Kiichi Miyazawa chastised U.S. authorities about monetary inflation and warned about
"overheating." Gold was also boosted by short covering after the metal found strong
support at the $281 level. A third factor was the diplomatically cloaked rebuff of the
British/American plan to sell International Monetary Fund gold until it could be considered
at the Fall meeting of the IMF -- some six months away. All of this gave the gold market a
positive disposition of having, at least for the moment, turned the corner. Palladium took a
nasty tumble (down $15 @ $336 June) on reports that Russia is shipping large quantities of
the metal in advance of an export tax to be levied there. Crude oil was 48¢ higher ($18.29
June) on reports that oil and gasoline stocks were dwindling and a significant drop in U.S.
oil imports. That's it for now. We'll update if anything significant develops. Have a good
day, fellow goldmeisters.

ORDER FORM for a Free Copy of News & Views -- our widely read monthly newsletter
-- and introductory packet on gold ownership.

Christine (4/28/99; 8:50:36MDT - Msg ID:5268)
I was wrong
It's all the same game, same players.

Christine (4/28/99; 8:30:04MDT - Msg ID:5267)
euro, inflation, war, Y2K
http://www.netcom.com/bin/webnews?a=clari.web.usa.top:wed/di/Qmoney-kosovo-aid.RpiM_9AS.html
If too many Y2K problems in Euroland, they will have to inflate the euro to pay for it, as with the Balkans war. It's all the same game, different players.

The Stranger (4/28/99; 8:27:18MDT - Msg ID:5266)
Miscellany
As I write this, the XAU index of gold mining stocks has already crossed 71 this morning, a new recovery high. The gold mining group has now risen 45% from the lows of last August and 25% this month alone. It has also given me the opportunity to be the first member of the round table to use the words "high" and "gold" in the same sentence(without also having to use the word "shorts") in a long time. For my money, there is no better harbinger of future gold prices than the XAU. We now find it within only a point or two of crossing the major downtrend line drawn off the June'96 and Oct.'98 tops!

Peter Canelo, Market Strategist at Morgan Stanley, was asked on CNBC this morning what he thought about the M3 chart which is printed in the current "Barrons" (and which appeared, through a link, here at the Round Table). He said, "M3 has never had much correlation to what we see in the markets. MZM, and even M2, are still growing at the fastest rate since 1987, so I would ignore the Barron's article."

Let's hope he is right.

Tomcat, thanks for the honorable mention! I find your post intriguing, as well. This dollar vis-a-vis y2k issue is a most interesting question. There are so many variables to consider with respect to currency relationships, that even a Nobel economist with a super computer gets lost (witness Long Term Capital Management). The strength in gold, however, looks like a shoe-in to me.

FOA (4/28/99; 8:12:04MDT - Msg ID:5265)
Y2K
Tomcat (4/28/99; 7:13:58MDT - Msg ID:5262)

Tomcat,
Hello! I just read your post and have a question. The dollar is a function of digital creation just as all other national currencies are. 90%+ of all currencies are digital blips. If a foreign national finds his local banks / economy shut down or failing because of Y2K, how will he exchange /
transfer his money into an operating US bank? Conversely, if that person has saved himself by placing their assets into a dollar account at a US bank, beforehand, how will he bring this money home for self sustaining purchases / investing if Y2K has destroyed the local digital banking system?

Also! Please understand that the dollar exists as a world reserve currency because all dollar denominated reserve debt (treasury and others included) is maintained through timely interest and principal payments. This servicing of reserve debt requires a "functioning" foreign exchange system, whereby foreign currencies can be converted into dollars for payment. No payment
brings debt default and dollar reserve destruction. Exactly why the IMF never writes off foreign dollar debt! Big time Y2K will bring big time dollar destruction! Physical gold will be much better as history and recent world events have shown that real gold can and does trade worldwide
"without" a functioning exchange market or banking system! Also, the tremendous increase in gold values that Y2K would bring would more than offset any loses of paper reserves that currently makeup the ECB system. Their debt is not held worldwide as a reserve function for the Euro. The ECB "System Banks" could eventually reopen with a manual gold based Euro currency. So could the dollar, but at a greatly reduced function as the ratio of dollar destruction as a factor of gold reserves is far out of balance!

What do you think Tomcat? Anyone? FOA

TownCrier (4/28/99; 8:08:36MDT - Msg ID:5264)
IMF panel urges new terms in bond contracts
http://biz.yahoo.com/rf/990427/b8a.html
This touches on many items discussed here at the Round Table.

FOA (4/28/99; 7:38:47MDT - Msg ID:5263)
More on Gold
Aristotle (4/28/99; 0:56:40MDT - Msg ID:5259)

Aristotle,
When the BIS stopped gold sales and leasing (that largely benefited major dollar reserve holders, such as oil) a year or so ago, many of the CB heads thought the public gold shorts would cover and create a minor liquidity crunch in the gold market. That action could have driven physical upwards into $340, $360, $370?? Many gambler investors "coat tailed" that private information and went paper long. However, the dollar supporters managed to roll over all of the paper shorts and leveraged even more shorts on top of that. In essence, as Another said, the paper moved from coast to coast, just turning over! Actually, this has played even further into the hands of the BIS as this turnover has created much more fuel to unwind the dollar through gold strength! As I said in my last post, the US now must accept a "diminished" reserve status for the dollar, if it is to maintain any reserve competition against the Euro. This "new acceptance" comes in the form of throwing the paper gold shorts to the dogs and actively pushing up gold!
Watch the open interest on comex, over the next monthS, it should start a rise that will blow people away!
400,000 OI+ will be the result of small shorts trying to hedge by going long. Notice I said hedge, not cover, as covering is out of the question as the IMF and Swiss gold will never hit the streets! Also notice I said "small shorts", as the big players are now "politically shut out" and will eventually be liquidated with cash settlement in a "going out of business sale"!
Yes, inflation will roar as gold rises perhaps 30 times or more. It's going to be a dynamic process that will make investing in the stock market look "small time'.
good luck FOA

Tomcat (4/28/99; 7:13:58MDT - Msg ID:5262)
Y2k and the strengthening of the dollar and of gold
It is very good to be back to this forum. I have been traveling for two weeks and coming back to the forum this weekend was like coming home.

First, I would like to acknowledge FOA, Another, The Stranger, and the rest of the posters who have made so many valuable contributions recently.

This post is going to be a pro-dollar post. Strangely, it will also be pro-gold. Until now, many of us have valued gold inversely with the dollar. A weaker dollar was accompanied by the rising value of gold. This relationship will change. Let me explain.

First, let met acknowledge that the size of the US dollar supply certainly bodes poorly for the dollar and, all things being equal, this large supply would imply a loss of the dollar's value both in terms of gold and other currencies. But, all things aren't equal. With y2k on the horizon, I see the dollar strengthening.

In December of this year, banks throughout the world will be checking their computer systems with one another. Those that are not compliant will be asked to take a hiatus and will not be allowed to interact with other compliant banks. To the private banking community, it will become clear who will be allowed onto the playing field. Furthermore, there will be many governments and corporations, who will no longer be able to play the public relations game of "...yes, we are a bit behind schedule, but we'll make it. Simply said, time will have run out. This will translate into a New Financial Order, the NFO, who will simply be the players who can still play.

My claim is a simple one. Realatively speaking, the US banks, the US government, and the US corporations will score higher in December than their counterparts throughout the world. The US will be leading the NFO and many banks and even countries will be asked to take a break. For the losers, the value of their currencies will, unfortunately, go into the toilet.

At this point, in December, there will be a flight from other currencies to the dollar and to gold.

For some countries, with poor banking, government, utility, and corporation scores, confusion will reign. They might be forced, temporarily at least, to rely on the dollar to get them through their crisis. The irony will be that the excess foriegn held dollars will become a solution for many. The very dollars that they would normally love to shed (when the dollar weakens) will be held closely and used, as now in Russia, as a currency of value. If Japan is as weak, y2k-wise, as some believe, you could see them trading in dollars, US treasury notes, as well as gold!

What will happen the the POG in terms of the dollar. I cannot predict this. Personally, I am holding on to my gold but I plan to have some US currency on hand as well.

The above scenario is going to be tested very soon. November and December of this year will be, for many, the months of a frightening enlightenment. Gold will be king but, oddly enough, by his side might be a new queen, the dollar.

Will the dollar remain a permanent winner. That depends on how the US makes it through y2k. The point of this post is that we are headed for at least a temporary period where the relative strength of the US economy will give a temporary boost to the dollar. Oddy enough, if the demand for gold and the dollar rise in similar proportion, then we might see the POG stay the same in terms of the dollar.

FOA (4/28/99; 7:04:43MDT - Msg ID:5261)
IMF
Arizona Hiker,
I had to laugh when reading that post. Someone has to have a really good brain for humor to put that together. thanks

Aristotle (4/28/99; 0:05:40MDT - Msg ID:525)

Aristotle,
I think the IMF gold sale has been worked out already. Any further public statements are just political posturing. The term "sales" is indeed misleading and true words like "leveraging assets to provide further loan guarantees" will never be used. Aristotle, gold is now the last asset and the
US / IMF factions are going to have to make it rise to provide liquidity. As I said before, the BIS and it's European / other allies have (for the past year or so) blocked any further lowering of the gold price. If the US wants to protect it's remaining dollar reserve viability, (by maintaining all foreign dollar reserve debt) it now must allow it to depreciate against gold to provide liquidity.
That, my friend is the only avenue left for them! This will, as Another has pointed out, drive assets to the other new reserve system. As I mentioned to Christine, national entities will have a choice as will you and I and Christine. That being, stay with a falling dollar or move into Euros and gold.
Free choice is what it's all about, not conspiracy. FOA





SteveH (4/28/99; 3:22:59MDT - Msg ID:5260)
June gold now...
up again. $284.00.

Aristotle, sleep, got some. <:-}

Aristotle (4/28/99; 0:56:40MDT - Msg ID:5259)
Relative prices--a question for ANOTHER or FOA
I have closely followed your thoughts over these many months, and have probably scrutinized many world economic events and trends a bit differently or at least more closely than I would have otherwise. Your thoughts have stood up well, insofar as I haven't found what I could call a fatal flaw in the mix. To step back and adopt a non U.S.-centric view, these thoughts become ever so much clearer, and I readily say, "Well of course! How could it be otherwise? I'm surprised it all took THIS long to develop."

In life, certainly in politics, there are no absolutes. The general path you've described seems quite clear to me. In this same theme of No Absolutes, you seem to have a general idea for the levels of the coming devaluation of the dollar, which is the essence of my question.

It seems evident to me that the dollar would be devalued equivalently against all real goods and services, with Gold as the exception. While other items are effectively repriced by some multiplier, Gold would be repriced by a much higher multiplier because currently it is greatly undervalued relative to all things. My question for you is, have I represented the situation reasonably well, and what might we expect the 'Gold multiplier' to be in proportion to the 'goods & services multiplier'?
2 to 1?
10 : 1? (For example, Gold increases by a factor of 100 while goods and wages increase by a factor of 10)
Another ballpark?

Thanks for your insight. ---Aristotle

Aristotle (4/28/99; 0:05:40MDT - Msg ID:5258)
Audacity? Congress(ional approval) relegated to the cellar? Or pre-approval?

A recent headline stated, "Camdessus Says IMF 'Will Certainly' Sell Some Gold to Fund Debt Relief"

Hold the phone...America essentially has veto power with 17.5% of the IMF Board vote--85% needed to approve the sale. As we've seen from a recent post from Aragorn, the 11 unified EMU nations would effectively have veto power also (with 22.4%) if this sale were seen as a legitimate threat to their cause. So, from the IMF Director characterizing these Gold sales as a done deal, may we conclude that this has already been worked out behind the scenes, and is ultimately (somehow) in the best interest of all?

I see three primary options:

1) No change; the IMF continues to hold the member countries' gold subscription payments,

2) Outright sales; auctioned to highest bidder, or sold at an arranged price to an arranged buyer, or 'eyedroppered' onto the open Gold market, and

3) 'Sold' in restitution; effectively returning the gold to the various member countries for convertible currencies.

Maybe some mixture of 2) and 3) has been worked out. If Congress and the euro countries are otherwise against losing at least this fiduciary control of their share of the Gold, surely they would welcome the chance at direct restitution 'sales' for their share, while those uninterested parties allow shares to be dispersed as per option 2).

These international institutions clearly don't hold their Gold as future inventory for jewelers. It is NOT being demonitized, and for that reason, I think the characterization of this coming IMF Gold 'redistribution' as a SALE is misleading, at best. But frankly, as one who is thrilled to acquire Gold month after month at these prices, I welcome their choice of words and the accompanying rhetoric. I know it must be hell on the mining companies and people acting on short time horizons, but much evidence points to the end of this incredible span of time in economic history. Looking back, I will surely take comfort in knowing that I acquired as much as my means allowed me to, and even at that, I will surely be saddened by the smallish box that accomodates the total. So be it. Such is the high value of this rarest and most important monetary asset on Earth.

Uncommon wealth. Uncommon independence. Gold. Get you some. ---Aristotle



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