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ARCHIVED DISCUSSION FROM 1/29/2006 All times are U.S. Mountain Time (Yesterday's Discussion.) mikal (1/29/06; 21:18:13MT - usagold.com msg#: 140997) The squeeze jpeg- "Nothing to see here" http://www.hessdesignworks.com/Illustrations/Dollar.jpg Magician's sleight-of-hand with dollar trick mikal (1/29/06; 21:04:36MT - usagold.com msg#: 140996) "Chinese note" link http://xs.to/xs.php?f=newusdollar.jpg&h=xs66&d=06051 Link for below mikal (1/29/06; 21:01:09MT - usagold.com msg#: 140994) U.S. fixes China trade deficit http://msnbcmedia.msn.com/j/msnbc/Sections/Newsweek/Components/Photos/Mag/050321_Issue/050321_COVER.widec.jpg Paper tiger: American - Sino differences papered over balzac (1/29/06; 19:45:35MT - usagold.com msg#: 140993) BELGIUM'S DEPARTURE I will personally miss your recurring posts on the euro and the political insight which you brought regarding the EU. Sorry to seeyou go. Balzac Cavan Man (1/29/06; 15:41:35MT - usagold.com msg#: 140992) Outstanding, comprehensive overview of Iran ISSUE http://www.321gold.com/editorials/engdahl/engdahl013006.html Suggested reading....CM (this is not an editorial) Chris Powell (1/29/06; 12:38:17MT - usagold.com msg#: 140991) Gold Rush 21 hastens ascent of the precious metals http://groups.yahoo.com/group/gata/message/3629 Another GATA dispatch.To subscribe to GATA's dispatches, send an e-mail to:gata-subscribe@yahoogroups.com Chris Powell (1/29/06; 12:37:26MT - usagold.com msg#: 140990) Penny's copper melt value now exceeds its monetary value http://groups.yahoo.com/group/gata/message/3627 GATA dispatch.To subscribe to GATA's dispatches, send an e-mail to:gata-subscribe@yahoogroups.com Knallgold (1/29/06; 12:03:49MT - usagold.com msg#: 140989) @Belgian All the best from this Swiss liliputan! Flatliner (1/29/06; 12:00:49MT - usagold.com msg#: 140988) DAVOS, Switzerland (FORTUNE) - Be afraid. Be very afraid. http://money.cnn.com/2006/01/27/news/international/pluggedin_fortune/index.htm snip:Doomsdays 1 through 6To come up with some likely scenarios in the event of an international crisis, his team performed what's known as a regression analysis, extrapolating the numbers from past oil shocks and then using them to calculate what might happen when the supply from an oil-producing country was cut off in six different situations. The fall of the House of Saud seems the most far-fetched of the six possibilities, and it's the one that generates that $262 a barrel.More realistic -- and therefore more chilling -- would be the scenario where Iran declares an oil embargo a la OPEC in 1973, which Browder thinks could cause oil to double to $131 a barrel. Other outcomes include an embargo by Venezuelan strongman Hugo Chavez ($111 a barrel), civil war in Nigeria ($98 a barrel), unrest and violence in Algeria ($79 a barrel) and major attacks on infrastructure by the insurgency in Iraq ($88 a barrel).Looks like we might have an aggressive emotional week for oil. USAGOLD / Centennial Precious Metals, Inc. (1/29/06; 11:27:50MT - usagold.com msg#: 140987) A world of gold at your fingertips... http://www.usagold.com/buy-gold-coins.html Goldilox (1/29/06; 09:12:13MT - usagold.com msg#: 140986) Gold Revaluation @Ned,I'm gonna decline your offer, simply on the basis that I am a novitiate in any discussion of "currencies", leaving that subject to more studied posters like TC and Belgian. Reavulation strikes me as a currency issue.Having said that, I do believe that the CBs will let things revalue to the point where they can usefully reengineer global commerce and maintain control. They will fight to keep their "Rothschild" currency creation advantage, and nothing short of a worldwide banking boycott can interfere with that.But as currencies are nothing more than virtual digits, the "values" placed on gold (real money) and commodities can be all over the map, as the market controllers dictate. OvS (1/29/06; 08:56:57MT - usagold.com msg#: 140985) Ned J. In the upper echelons ofworld society the idea isfloating around that OsamaBin Laden, a US trainedAfghan fighter, started theassault on the USA to rallyand unite the Moslem world,to radicalize it.That is an idea that, howeverunlikely the alliances are,unifies China (with numerousTurkic Moslem communities),Southeast Asia (with a hugeIndonesian population nextdoor), Europe (with Turkey,Bosnia and the North of Africacamping on the front door, andmillions already nesting inthe kitchen), and Russia (withChechen o'Ingush and otherMoslem countries encirclingits Southeastern and Southernflank). That all the Central Banks ofthe non-Moslem world (and inclu-ding a number of American-upheldIslamic puppet regimes) will let the American dollar be annihilatedand the following chaos and Moslemfollow-through be allowed, seemsto run counter to all those namedcountries' self-interest.As we all know very well, thedollar is as good as the confidencein it; and as long as one can tradeit for oil and commodities, techni-cal knowledge, high-tech industrialand IT products, agricultural goods,and huge financial investments, why,even a former declared enemy likeCommunist(?) China knows on whichside the bread is buttered and onwhich countries the leadership'ssurvival depends.These CB's will work together andhelp each other, as they alreadyare spreading the gold among eachother; the dollar must come down,but don't count it out--with thededuction: Gold to the Moon, soon,is a looney idea. A gold standard,or some kind of derivative systemis probably inevitable but, theMoslem insurgency must be containedfirst.It could be contained much faster,if our leadership wouldn't force the womans liberation movement, thegay movement and other "liberating"movements down the Islamic world.That a Republican leadership is partand parcel to such deliberation isastonishing. I suspect it is the other side of the Neo-Con's cointhat is responsible for such tragicpromulgation.But Nature will reassert itself, italways has; after that, I can seethe first glimpses of World-widePeace, with GOLD as real Wealth andfinancial and political anchor. OvS Rook (1/29/06; 06:59:04MT - usagold.com msg#: 140984) .,. Belgian, I hope all is ok with you. Others have left and returned over time. I trust we shall get updates from you? Whatever might be happening in your world, we are here to read you when you want the outlet. Seems like we are on the verge of a lot of change, and the table is a good place to view it from. So chime in when you can. Ned (1/29/06; 06:04:58MT - usagold.com msg#: 140983) @ Goldi Good morning !From my "wild guesses" post of 140973, you can easily discern that I believe oil will be the catalyst for the "gold deval" setting "gold free".Kinda something like this:Rising POO (variety of reasons,2006-2010)> fiscal imbalances (variety of reasons, primarily POO, 2006-2008> monetary explosion followed by implosion (a la Prector, 2006/2008)> gold to da moon (2006-2008 thru 2012)Of course we throw in all the individual items like "boomers", IRAN, IRAQ, other (more?) wars, nucs, terror, etc., etc., etc. Each its own gallon (or 7) of gas on the fire.I was surfing through all the articles on Bid Laden's 'truce' last night. You go home, we stay home. What a novel idea. What we have here (love that phrase) is a situation that has self-perpetuating traction that accelerates into misery. Sorry to be glum, but I see no other way in or out.Anyway......sorry to be so "endgame" slanted so early on a Sunday.I enjoy your posts Goldi. I extend a question to you and all. Care to throw out a brief synopsis of your version of the "free gold" / "gold revaluation" theory.Thanks a bunch, have a golden Sunday.Ned Johnston. Ned (1/29/06; 05:43:17MT - usagold.com msg#: 140982) Bush's failed Middle Eastern policy "And now with the triumph of Hamas in the Palestinian election, we see the total failure of Bush's Middle Eastern policy. Bush has succeeded in displacing secular moderates from Middle Eastern governments and replacing them with Islamic extremists. It boggles the mind that this disastrous result makes Americans feel safer!"...and so the world puts it faith in the yellow metal. Amongst other things, this failed foreign policy has a huge price tag that will dethrone the almighty dollar. In all of its irony, Bin Laden has offered a 'truce'. All Americans are to 'go home', let the Muslim world fend for itself. Bin Laden has said, "do not fight us on our soil and we will not fight you on your soil".What is the harm in that? A wise man on this forum said only a year or two ago, "Simply, we would have to pay for it (oil)."Where is that man? ge (1/29/06; 02:36:25MT - usagold.com msg#: 140981) Dow – Gold Ratio … Wild, wild speculations Speculation on whether the lower limit of Dow-Gold ratio is bounded 1?The equilibrium value of Dow-Gold ratio should be roughly proportional to the ratio of existing goods and services to the existing gold stock. (Does equilibrium exist in the real world? Well, only fleetingly!) In a simplistic economy where all goods are 10 computers and all the above ground gold inventory is 20 ounces, the theoretical price of one computer should be 2 ounces. Call the equilibrium Dow-Gold ratio at this point as DG1. Now assume that technology has improved and the total number of goods (computers) has increased to 50 while some additional gold (5 ounces) has been mined so that above ground gold stock is 25 ounces. This time the equilibrium value of 1 computer should be 1/2 ounces. . Call the equilibrium Dow-Gold ratio at this point as DG2. Question? Should DG1 be equal to DG2? I believe that DG1/DG2 should be roughly proportional to prices of computers in ounces, that is 2/(1/2)=4. If this reasoning is correct, a lower bound established on Dow-Gold ratio in the 19th century should not hold in the 21st century due to the immense increase of material goods and services in the economy. Hence I would speculate that a Dow-Gold ratio that is immensely lower than 1 should be expected. Speculation on whether the Dow-Gold ratio has an upper limit?I would speculate that the increase in Dow-Gold ratio is fuelled by credit inflation and fiat money creation; therefore it is does not have an upper bound. 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