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ARCHIVED DISCUSSION FROM 4/30/2001 All times are U.S. Mountain Time (Yesterday's Discussion.) beesting (04/30/01; 22:31:38MT - usagold.com msg#: 52871) Some More From Congressman Paul's book. An ongoing talk between Ron Paul and someone called Plowboy about going back to a 100% Gold backed system in the U.S.:Quote from book:...Paul: There is, however, another option, and that's to introduce COMPETITION...by allowing another *currency to be developed in parallel to our paper money.Plowboy: How would that work?Paul: Look at it this way: If we wanted to get rid of the U.S. Postal Service, we wouldn't have to abolish it tomorrow. We could simply legalize more competition...etc. etc.It's the same with money. Politically and economically, it would be very difficult to cut off todays system and have a perfect one in place tomorrow. But we can pass some laws that will introduce competition and allow another *currency to be used.Some people think this would result in total chaos, but we're dealing with different currencies internationally all the time. We have fluctuating rates that are measured every minute. It's amazing how it all works!, and we are also well able to adjust to two *currencies! It doesn't take the average American tourist long to figure out another country's exchange rate....and it would be the same if we had two internal *currencies.In fact, we had this situation during the Civil War years. We went off the Gold standard and printed greenbacks, but Gold still circulated.....End of Ron Paul quote.*Could also mean "Electronic Gold" as Congreesman Paul's book was published in 1991 before "Electronic Gold".One other fact gleaned from Dr. Paul's book:He was also co-founder along with Senator Jesse Helms of the U.S. Gold commission. As a result of the Commission, the U.S. Treasury once again started minting Gold coins(1986),one of the few Constitutional functions of government.Comment:We can thank these two for the modern day Gold Eagles in our coin collections. Thanks again for reading....beesting. ausome (04/30/01; 22:04:35MT - usagold.com msg#: 52870) Gold stocks yet to hit low yet? http://www.gold-eagle.com/editorials_01/marantette050201.html According to David Marantette(Goldstock) the price action of PDG indicates we have not seen the low yet. Check out the link from GE. He has (in the past) been looking for a low at about POG 217-230. What does everyone think of his analysis? He says he has a reasonable track record? beesting (04/30/01; 21:48:15MT - usagold.com msg#: 52869) Congressman Ron Pauls Version of the 1933 Confiscation of Gold. From The Ron Paul Money Book(Soft Cover Published 1991) Sir Turnaround # 52769 4/28/01 16:19MT, thanks for the legal definitions on my post # 52701, you sound like you have a good background in the legal field. I was away from the PC most of the weekend and struck Golden wisdom in a paper back book written by Congressman Ron Paul, title above.I really hope to share some of his profound writings from the book in the next few days.Here is a word for word explanation concerning the 1933 confiscation of Gold by President Roosevelt:Start Quote of Ron Paul Page 148:America Breaks Faith If sterling was not good, the world asked itself, what was? It looked nervously at America, and had presented claims for $728 million of our Gold by the end of Oct.1931. But Americans thought any such fears were silly. After all, we had continued to pay Gold to foreigners even in the crisis of 1895, with a low point of only $41 million of Gold in the Treasury. Alone among belligerents, we had not gone off Gold in WWI, although we had stopped the export of Gold. Certainly few Americans cashed in notes for Gold in late 1931. They may have doubted the solvency of some banks, but few if any doubted the good faith of the American government's promise to redeem notes for Gold. The platforms of both parties in 1932 contained vows that the Gold standard would remain. The Democratic platform was largely written by Sen. Carter Glass of Virginia and Cordell Hull, later secretary of state. As events proved, both these men were sincere.The first sign of shakiness in the American position was a foolish and false statement by President Hoover one month before the Nov. election. He charged that the federal reserve had been withen two weeks of going off the Gold standard earlier that year. That statement was soon proved untrue, but it aroused doubts for the first time in peoples minds. These grew into rumers beginning in late Dec. that President elect Roosevelt was going to take the country off the Gold standard. Roosevelt would not deny them, and American Gold hoarding of Gold started for the first time on a grand scale. The feelings of disquietude were made worse by a paralyzed government. the new President was not to take office until March 4(the old Inauguration date) and a lame duck Congress had many members due to retire. In the cabinet departments, anyone whose job was not protected by civil-service rules was preparing to find a new job in the midst of a terrible depression. Runs on banks by depositors anxious to get cash, and runs on the Federal reserve Banks by cash holders eager to **turn their paper into Gold,**accelerated. it should not have come as a surprise when on Feb. 14 Michigan became the first state to declare a bank "holiday,"i.e., to close the banks to depositors. Michigan had been the home of some of the more reckless lending by banks during the boom. Nine days later Indiana followed, and then a score of banks in a cluster. Late on the night of March 3, the big New York banks reluctantly agreed to close; though they were not in trouble, smaller upstate banks were. Roosevelt became President the next day with almost every bank in America closed. He kept them all closed until March 13, when the Federal Reserve banks opened, with others a day or two later. The public, assuaged by FDR's promise that the reopened banks would be good, poured both Gold and cash into banks. But on March 9 Congress passed , at Roosevelt's request , a bill"to provide relief in the existing national emergency in banking and other purposes." it gave him the power to do all he pleased regarding money and banking, including authority to seize the American people's Gold coins,bullion, and Gold certificates.Withen a month the power was used. On April 5, it became illegal to own or hold any form of monetary Gold, either coins,bullion or certificates.(Industrial users of Gold were not affected) The banking crisis had been brought on by past inflation. But that crisis, ironically, was made the excuse to abandon the Gold standard.At first, it was stressed that these measures were temporary, only to be used as long as the crisis lasted. But on May 12 a law was passed (The Thomas Amendment to the Agriculture Adjustment Act) which gave the President the ability to increase vastly the money supply and to reduce by up to half the weight of Gold dollar. Democratic Glass called it dishoner...This great government, strong in Gold, is breaking its promises to pay Gold to widows and orphans to whom it has sold government bonds with a pledge to pay Gold coin of the present standard value. It is breaking its promise to redeem its paper money in Gold coin of the present standard of value. It's dishoner'sir. Another Democratic Senator, Thomas Gore of Oklahoma, was asked by the President for his opinion about another law (signed on June 5) abolishing the Gold clause on all past obligations: Why that's just plain stealing, isn't it, Mr. President? later in Senate debate, Gore also added that "Henry VIII approached depravity but the vilest thing he ever did was to debase the coin of realm.One final step remained. Using the Gold Reserve Act of Jan. 30, 1934, President Roosevelt arbitarily reduced the weight of Gold that would define each dollar. The "old" dollar had been defined as 25.8 grains of Gold, nine tenths fine. The new devalued dollar would only be worth 15 5/21 grains, nine-tenths fine. So even the act of abandoning Gold was done with the implicit admission that the dollar was still defined in terms of it. End of Ron Paul Quote.Comment:What did we learn from this? Answer,conditions were exactly the opposite of what they are today as far as the public using Gold in every day commerce is concerned. We are considered eccentric coin collectors, until the collapse of the dollar. (Smile) Thanks for Reading....beesting. The Hoople (04/30/01; 21:47:16MT - usagold.com msg#: 52868) TheStranger re: inflation update I have always maintained that when bar coding and scanners replaced price stickers at the stores it was a secret campaign to conceal inflation. Previously the stickers on your soup cans, paint, etc. showed the steady march upward. Now people are left guessing unless they save receipts and go back to compare. Gasoline is one of the last consumer items purchased that trumpets what is happening to the dollar. You drive by those huge numbers at gas stations and literally gasp. If stickers were still on store staples there would be a lot of audible gasping at the Krogers and Wal-Marts too. Maybe one day CPM will put those signs out front with "Gold , 1 oz , $2,399.00 . Always the Low Price. Always." Thanks for all your comments. rsjacksr (04/30/01; 20:06:11MT - usagold.com msg#: 52867) Drooy et al For what it's worth, ther is a spike in volume for Harmony also. R Powell (04/30/01; 19:24:27MT - usagold.com msg#: 52866) Lafisrap Thanks for keeping an eye on the Comex stocks for us! Rich R Powell (04/30/01; 19:21:42MT - usagold.com msg#: 52865) JMB "What's up" with Drooy? No clue other than the fact that someone bought a fair number at $1.45. I've heard of an old investor who only buys so-called good "value" stocks of companies whose business he can understand. He never bought any dot-coms. Is gold mining hard to comprehend? The mining sector may be drawing some mutual fund type investment money. Many of these guys are "sector" investors and precious metals mining companies are being mentioned. Perhaps a little momentum in our favor? One more mystery with a positive feeling. The XAU was down today but spiked up again just before market close. Is something stirring or am I just wishing?? Rich AbsoluteX (04/30/01; 19:10:15MT - usagold.com msg#: 52864) Scenario Europe 2010 Here is lecture notes of a german friend of mine, who is doing her political master degree, which I thought might be interesting for you too..It's about the future of europe and points out really some interesting issues, but more interestingly doesn't mentioned anything about the political union problem.. PS: Stranger: Thanks for the brokerage info. I think if there is a crash going to happen, the first brokerage whowill bankrupt will be this Ameritrade... it's situation doesn't look stable already..============Scenario Europe 2010Today's tendencies:- world rationalization- rising tensions of the US and ROW- economic success of EMU and Internal Market- opening of EU market for agricultural products of LDC's- …I. DEVELOPMENTS 2001 TO 2010Two presumptions1. The Internal Market is a success story2. Stronger international need for the EU as a global actorto 1.) Internal Market2001 till 2005- liberalization is completed in the EU (financial markets)- EMU is very successful, Euro becoming influential - strong need for public and private regulation of economic activities on EUlevel (EU level becoming therefore more important- decline of the US as the economic locomotive of the world- Seattle II failed, but WTO is developed as a 'body-lending' institution (eg.for dispute settlement between trading partners) and as a arbitrator andinitiator- IGC in 2003 in Italy: complete revision of CAP until 2010 due to scarce workforce in EU- European economic, societal and political model becoming attractive for otherworld regions- …2006 till 2010- China and Russia acceded the WTO; China is becoming the most dynamic economy onthe world- European markets becoming very dynamic after the accession of the Estonia,Poland, Czech Republic, Slovenia, Hungary, Cyprus and Malta.- IGC in 2007 in …: new differentiated strategy of full EU membership, differentlevels of Association in different sectors and inter-world region cooperation.- several trade arrangements- …to 2.) Global Player2001 till 2005- unilateralism of the US- EU is in this decade capable and willing to counteract the US- US abstention in economic and political crisis'- US concentration on the Americas- military crisis in SEE, Macedonia involving Greece and Bulgaria: EU steps inwithout the US- rationalization of the world- rising economic tensions with the US- rising political tensions with the US- …2006 till 2010- new presidential administration in 2004 has learned in the early 00's to bemore multilateral and cooperative- EU is developing its civilian power, underlined by military capabilities (butnot using them: only credibility)- EU is main global partner for other global players- together with the US EU is mediator between People's Republic of China and theRepublic of China- multi-polar world- …II. SHAPE OF THE EU IN 2010These two presumptions (economic growth and attractiveness on the one hand andinternational or global actor on the other hand) are shaping the model of theEuropean Union. (Question: how would the such a development influence the shapeof institutions and policies of the EU in 2010?)1. Institutions- foreign, security and military policy is incorporated in EC (one pillarstructure of EU)- Parliament: control of budget, right to initiate, equal co-legislator withCouncil- Council: permanent representation according to population of members.Counselors coordinating national ministries in EU affairs.- Commission: Execution- ECJ: a) supreme civil court, b) Constitutional (and fundamental rights) court2. Multi-layered and multi-dimensional global policy of EU- Enlargement fulfilled: static size of EU- de facto membership for Norway, Iceland and Switzerland- FTA with Turkey- cooperation in security and military matters with SADC- CIS (with all former SU states) is most important trading partner- cooperation with NAFTA in competition policy- free trade arrangement with ASEAN (including China!)- free trade arrangement with MERCOSUR- Mediterranean countries considering their common cultural heritage- MeFTA (esp. with Maghreb-Union Lafisrap (04/30/01; 18:53:16MT - usagold.com msg#: 52863) euro, dollar exchange rates and COMEX gold and silver warehouse stocks-April 30 http://www.futuresource.com/news/news.asp?story=i4146274755158736897 No immediate strengthening in the euro today. I thought the uero might strengthen on account of the interest rate differential between the ECB and the Fed, and on account of the ECB holding steady, refusing to buckle under the pressure brought about by the U.S. Treasury and IMF.No change in COMEX gold stocks today; however, about 1/2 million ounces of silver were removed from eligible stock and about 1/2 million ounces of silver were removed from registered stock. That leaves COMEX warehouse silver stocks total at about 96 million ounces. JMB (04/30/01; 18:41:56MT - usagold.com msg#: 52862) R POWELL They're having a blast over there! A four bit rise in DROOY is HUGE. What's up? R Powell (04/30/01; 18:35:25MT - usagold.com msg#: 52861) Drooy Just came from the neighboring castle. They are all in an uproar as Durban Deep, a mining concern that many G-Es hold as stock investment, is trading anywhere from $1.18 to $1.45 in afterhours trading. Apparently 16,200 shares were bought at $1.45. The celebration, if Drooy can hold that increase, will be deafening tomorrow. We may have to close the windows. However, this is, I believe, a very good sign. Perhaps a good omen! Rich auspec (04/30/01; 18:19:44MT - usagold.com msg#: 52860) Service? CPM is the place to go for SERVICE! Randy (@ The Tower) (04/30/01; 17:49:04MT - usagold.com msg#: 52859) Gads, must learn to proof read where it matters most. "I can think of NO more reliable method..." etc.(back to Projectsville) Randy (@ The Tower) (04/30/01; 17:44:37MT - usagold.com msg#: 52858) With comment like these, you realize that you need gold now more than ever http://business-times.asia1.com.sg/news/story/0,2276,6062,00.html? The Political and Economic Risk Consultancy speculates in its current Asian Intelligence report that the area is vulnerable to a competitive devaluation of the Chinese currency.The report states:"The lower that the Japanese yen and, by implication, other Asian currencies fall against the US dollar, the more likely it is that Beijing will feel the need to devalue its currency as well,"saying further that a yuan devaluation would"send shock waves throughout the region that would seriously test local financial systems and could also have unsettling political consequences."I can think of more more reliable method to protect one's accumulated savings than through ownership of tangible assets such as gold. And coincidentally, China continues to move surely and briskly toward liberalizing and opening its "new gold market". justamereBear (04/30/01; 17:36:56MT - usagold.com msg#: 52857) MK & USAG Admin AKA Marie Just a note in haste to say that the Canadian Postal system has "heroically" braved snow and storm, walking a hundred miles at least, all uphill, and delivered today, one beautiful (and it is beautiful) siver eagle coin. Thank you very much.j'Bear Randy (@ The Tower) (04/30/01; 17:18:10MT - usagold.com msg#: 52856) Through time and energy spent here you have all become experts on banking. You should therefore anticipate your day in the sun if AngloGold's marketing director Kelvin Williams has indeed made the proper assessment. In the words of Bridge News, Mr. Williams indicated that "higher short-term lease rates in the gold market are a clear signal of the limits to gold lending liquidity".On another note, during the last quarter, SA's Anglogold Ltd. trimmed its forward book (with 17.8 million ounces sold out to December 2010) by 810,000 ounces in the past quarter. Randy (@ The Tower) (04/30/01; 17:01:30MT - usagold.com msg#: 52855) Boys will be boys. Have you heard the news? HEADLINE: COMEX floor broker agrees to pay $48,000 to settle CFTC charges Washington, (BridgeNews) April 30 - A COMEX floor broker agreed to pay more than $48,000 in fines and restitution to settle charges brought by the Commodity Futures Trading Commission for fraudulently executing gold options trades by trading ahead of customers' orders for his own benefit, among other violations. In January the commission charged four brokers with fraud and two of the brokers settled the charges.-----------------As if it weren't bad enough that some good folks are enticed into this one-way (losing) paper-chase of a game, but then they are additionally cheated while in the process of giving their money away. What is this world coming to? Randy (@ The Tower) (04/30/01; 16:31:37MT - usagold.com msg#: 52854) In the middle of various conversations with people... As soon as I finish my current project, I'll be rejoining my dialog with several people, some of it reaching back to Thursday for beesting, ET, R Powell, Journeyman, etc.Just wanted to let you know I was not ignoring your questions and comments, but have been attending to other necessary items. TheStranger (04/30/01; 15:28:51MT - usagold.com msg#: 52853) Inflation Update 04/29/2001 - Updated 11:09 PM ET Consumers watch as inflation nudges prices upBy Gary Strauss, USA TODAY Is inflation back?It's beginning to look that way as consumers get squeezed beyond home heating bills and at the gas pump.Inflationary creep is gaining momentum on big-ticket items such as cars and homes, business and leisure travel, home furnishings, consumer essentials like milk and discretionary items like gourmet coffee and cigarettes."It's obviously something to be worried about," says Wells Fargo Bank economist Sung Won Sohn.Fresh data from the Commerce Department on the gross domestic product show a key inflation indicator hit 3.3% during the first quarter — the fastest clip in a year and up sharply from 1.9% in the fourth quarter. For the first quarter, inflation was running at 4% annually as measured by the consumer price index — up from 3.4% for all of 2000, according to the Labor Department."The Federal Reserve is now going to have to walk a tightrope between keeping the economy from a recession and curbing inflation," Sohn says. Where consumers are feeling pinched:Big-ticket items. Home prices are accelerating. The median price for existing homes rose to $143,500 in March, up 6.5% from a year earlier, says the National Association of Realtors. And rising home values are pushing up property taxes in some regions. Auto prices have inched up an average of 1.5%, although transaction prices — what buyers actually pay — have climbed 3.5% as they snap up expensive vehicles, says Art Spinella of CNW Market Research.Energy costs. Winter shortages and higher demand for both electricity and natural gas boosted utility bills by $200 or more a month for millions of consumers. Cooling bills are expected to be 30% to 50% higher this summer. Gasoline prices are up nearly 13 cents the past 2 weeks to an average price of $1.67 a gallon, up 8.4% since early April.Medical costs. Paced by prescription drugs and hospital fees, health care costs are rising at a 5.9% annual rate, the Labor Department says. Employers' insurance premiums are up 10% this year. Workers are feeling the pain because they pay one-third of the cost. Prices on leading prescription drugs such as hormone treatment Premarin and antidepressant Prozac are up 8% to 15%, says pharmacy benefit manager Express Scrips. Prices for drugs popular among senior citizens are up sharply, too, says Ron Pollack of consumer advocacy group Families USA. Consumer staples. Prices on some cuts of beef are up by 10%. The National Cattleman's Association blames the harsh winter, smaller herds and increased consumption. Cigarette prices are expected to rise to an average $3.05 a pack after last week's 14-cent wholesale price increase by Philip Morris and R.J. Reynolds. They also raised wholesale prices 14 cents a pack in December.Milk is up 18 cents or more a gallon in some states, boosting the price of other dairy-related products. "Inflation fears? You betcha," says Pendra Jane Rich, a logistics manager from Toledo, Ohio. "Up through last year, yogurt cost 39 cents. Now, it's 69 cents."Julia Rutherford, a retiree from De Leon Springs, Fla., says her monthly house payment has risen considerably because of higher property taxes. And she finds higher prices for staples disturbing. "Ground beef is more than $2 a pound. It's outrageous," says Rutherford, 69.Whip Inflation Now?It may not be time to break out those Whip Inflation Now buttons from the mid-'70s just yet. Inflation has been benign for most of the past decade. And there are plenty of economists who argue that recent price jumps are temporary blips. But, as Sohn notes, the Fed's series of short-term interest rate cuts designed to spur economic growth could heat up inflation.To some, the 3.3% quarterly "deflator rate" reported Friday is worrisome because it has registered greater than 3% only five of 40 quarters since 1991. It's considered a more accurate inflation barometer than the CPI because it reflects price changes in items people actually buy. The CPI gauges price changes in a basket of typical goods families buy each month.Inflation is problematic because it erodes consumer spending power and clips the real rate of return on investments from savings accounts to stocks and bonds. It also erodes consumer confidence — already weakened of late because of job layoffs and Wall Street's sell-off.Consumers obsessed with a recession, plummeting stock portfolios and job security are now fretting about prices. Mark Brockmeier, a Boston-based marketing director for a software company, says that when he's on the road, he grabs sandwiches from delis instead of dining at restaurants. And after noticing rising coffee prices, he started making it at home.Some price increases are almost too subtle to notice. Leather furniture prices are up 15% or more. That's because disease scares plaguing European cattle have pushed prices for cowhide skins up 66%. Some of the USA's 35,000 laundromats have held back surging utility costs by cutting drying times on laundry loads. Not that cleaning costs haven't soiled pocketbooks — about 80% of laundromats have raised prices at least 20% to an average $1.50 a load, according to the Coin Laundry Association.For other goods, price increases are obvious. Rising costs and sagging advertising revenue prompted national subscription rate increases of up to 25% for the Sunday New York Times. The Wall Street Journal boosted its newsstand price 33% to $1.But scores of companies are too scared to raise prices because of cutthroat competition, price wars, finicky consumers or slowing demand. Computer and cellphone makers have actually cut prices to boost sales. And prices have steadily dropped on imported goods, from apparel to consumer electronics.When price increases fizzleSome companies that have raised prices, such as automaker DaimlerChrysler and tire giant Michelin, have seen the practice backfire as sales slowed. Last week, coffee retailer Starbucks underscored the impact of short-term price rises in a slowing economy. Its fiscal second-quarter profit rose 38%, mostly because of price gains of 5 cents to 10 cents on drinks. But Starbucks also said slower consumer spending would cut full-year sales. An ensuing stock sell-off cut Starbucks' market value by $500 million.Still, companies that have cut costs to the bone by slashing capital spending or through layoffs and write-offs may have little choice but to eventually raise prices. Especially those that face escalating costs for raw materials, transportation or workers' wages.Travel troublesTravel and leisure companies find themselves in particularly tight spots. They face sharply rising costs at a time when many of their best customers — corporate travelers — are cutting back or insist on cheaper travel. So airlines and hotels are trying to cut costs while discounting selectively and raising prices with surgical precision.Planes remain packed at about the same level as last year. So far, airlines have avoided across-the-board fare increases. But revenue hasn't kept up with costs, and seven of nine big airlines posted first-quarter losses. Labor costs are soaring as unions ratify expensive contracts. Fuel costs, airlines' second-largest expense, are up 17%.Hotels also are raising rates selectively. In the battered tech mecca of San Francisco/San Mateo, occupancies were off 17% in March from a year ago and average rates rose 4.6%. In healthier Minneapolis-St. Paul, occupancies fell just 2.4% and rates rose more than 9%.Hotels in a growing number of states are requiring guests to help foot soaring energy bills. Some California hotels started the trend in January when they began tacking surcharges of $1.50 to $4 a night onto guests' bills. Similar surcharges have now spread to at least 14 states and the District of Columbia.The Holiday Inn in Vallejo, Calif., is reducing energy use substantially. How? By asking guests to sign pledge cards promising to shut off lights and TVs when leaving rooms, conserve hot water and limit air conditioner use. Most guests sign the cards.Rusty Martin probably wouldn't be one of them. Other than gasoline costs, he hasn't noticed rising prices. In fact, the owner of Cincinnati-based Deer Park Automotive Parts finds some products cheaper than ever. Martin spent $350 for a music tape deck in the early 1990s. He just bought a new one for $129 and purchased a TV for his son. "You can get a state-of-the-art 25-inch or 26-inch cable-ready TV for $300 to $350," Martin says. "Not very many years ago, that's what you paid for a 19-inch TV."Others, however, will continue watching what they spend. "I shop at our local Kroger store. Last summer, (the salad bar) was $1.99 a pound. Now, it's $2.69," says Marla Whiteside of Roanoke, Va.Whiteside, a state employee, doesn't expect a raise this year. Meanwhile, she's adding her 16-year-old twin daughters to the family auto insurance policy, pushing the annual tab to $3,700 from $1,700.A feisty Rutherford is cutting back, too. "You're darn tooting. I can't go to bingo anymore. And I'm doing a lot of the labor around here. I'm building a patio right now. Who's going to do it if I don't?"Contributing: Julie Appleby, Doug Carroll, Christine Dugas, Thomas A. Fogarty, Salina Khan, David R Powell (04/30/01; 14:24:26MT - usagold.com msg#: 52852) One and one half fer day POG was up one dime (June contract) while the mining stocks (XAU) were down for the day but with their usual last few minutes of trading uptick. Short term lease rates were down and longer term rates were up so, after careful consideration, the rates were awarded one half point gain for the day. One and one half day. Rich Randy (@ The Tower) (04/30/01; 12:31:12MT - usagold.com msg#: 52851) Call Marie today to line up that GOLDEN graduation gift http://www.usagold.com/jewelry/goldjewelry.html 'Pomp and Circumstance' go together like graduation goes with gold. Give the gift that outlasts a lifetime. Randy (@ The Tower) (04/30/01; 12:10:12MT - usagold.com msg#: 52850) How long has it been since you explored the USAGOLD home page? http://www.usagold.com/ Do it now! Randy (@ The Tower) (04/30/01; 11:11:50MT - usagold.com msg#: 52849) Reality hits Wall Street.... HEADLINE: Fund Industry Likely to See More Layoffs http://biz.yahoo.com/rb/010430/business_financial_fund_jobs_dc.html Excerpts:BOSTON (Reuters) - The U.S. asset management business, where some of the biggest names have already been hit by a round of job cuts, is likely to see more layoffs as financial markets disappoint and the industry adjusts to a more sober investment climate.AND"Hello? Was no one paying attention to the stock market in the last year and was no one paying attention to the bloat, not only in valuations, but in the silly compensation that was getting paid?" said Kim Raynor, a director at executive search firm Russell Reynolds Associates. ... "People are afraid to move without all sorts of guarantees. People are nervous."Interestingly, while Janus Capital Corp has given the axe to 34 percent of its service staff, among the 4% reduction at Putnam were five of its portfolio managers.Who, or what, is watching YOUR portfolio? Do you trust them to trade your life savings into and out of peril while trying to earn a dollar return in a post-party U.S. economy?As you come to understand the essence of gold, and to hold physical gold within your portfolio, you will sleep better at nights. Keep reading. I suggest you tackle the "Hall of Fame", the "Gilded Opinion", and the "Gold Trail" sections of this website if you haven't already "been there, done that". And be sure to read Michael's "ABC's of Gold Investing". (See if you can track it down using the Home Page...I'm sure that you can!) Randy (@ The Tower) (04/30/01; 10:44:27MT - usagold.com msg#: 52848) Comments from the meeting of the Group of Seven finance leaders PLUS, Fed injects reserves Bank of France Governor Jean-Claude Trichet painting the picture for others that the ECB is not hastening to cut rates or otherwise ease monetary policy:"There is a slowing down of external demand triggered by the slowing down of the U.S. economy, but continued vigilance is appropriate due in particular to the evolution of wages and salaries and a necessity to avoid the possible second-round effects of the present inflationary pressures stemming from oil price increases and the low level of the euro."And apparently, the old "strong dollar" mantra that played so well over here in the U.S. is now hearing its echo from euroland:"a strong euro is in the interests of Europe... The euro is underassessed and undervalued by markets."And his summary:"European central bankers are sometimes portrayed as being excessively cautious and reserved with regard to economic growth. On the contrary, they are very much in favor of growth -- first and foremost because the objective of monetary policy itself, price stability, is paving the way for medium- and long-term sustainable robust growth. ... I think that the ECB is bringing about a very important contribution to growth of domestic demand in Europe by fostering consumer confidence in ensuring credible medium-term price stability."- - -Meanwhile, on the heels of its latest intrameeting easing of U.S. monetary policy, the Federal Reserve today has added another $2 billion to banking system reserves through 29-day repurchase agreements, and an additional $5.5 billion injection via overnight Rp's....And the bond holders of the world take notice and rub their chins with furrowed brows.... Journeyman (04/30/01; 10:24:24MT - usagold.com msg#: 52847) QUESTIONS OF THE DAY: GSE'S @ALL fgcgi.cgi?ptitle=Top%20Financial%20News&s1=blk&tp=ad_topright_topfin&T=markets_bfgcgi_content99.ht&s2=ad_right1_topfin&bt=ad_position1_topfin&middle=ad_frame2_topfin&s=AOutS8BU.QnVmZmV0 I copied the following paragraph from the link in the header, originally posted by WW Oracle earlier today:"Lawmakers in Washington led by Louisiana Republican Congressman RichardBaker want to regulate the company more closely. Baker introduced a bill thatwould limit Fannie Mae's ability to expand and shift regulation over the companyto the Federal Reserve. Baker argues the company has grown too large andposes a risk to taxpayers."QUESTIONS OF THE DAY: 1. How could Fannie Mae "pose a risk to taxpayers?" Or reframed slightly, what decisions would bureaucrats and politicians have to make in order for Fannie Mae to pose such a hazard. 2. Would such decisions be "Constitutional?" 3. How did such a process become commonly accepted? Regards,Journeyman Journeyman (04/30/01; 10:04:32MT - usagold.com msg#: 52846) Third hand info, but it makes sense @ALL The FWIW (For What It's Worth) department.A good friend who is usually an impeccable source of info just told me a small part-time gold-mining friend of his told him there was a "mad push on" from the FEDS (perhaps through the Federal Reserve) to loan people money to open gold mines.Anyone else hear anything like this?Regards,Journeyman VanRip (04/30/01; 09:24:05MT - usagold.com msg#: 52845) (No Subject) http://www.clev.frb.org/Research/com99/1201.htm An interesting read regarding the operation of the ESF. Though written at the end of 1999, it appears to be quite thorough, even though it makes little reference to gold. It was posted on another site. A few snips:<<Since the ESF's inception, the Federal Reserve Bank of New York has been the officially designated agent for the ESF in intervention operations. In 1962, the Federal Reserve System's Federal Open Market Committee (FOMC) authorized open-market transactions in foreign currencies for the account of the Fed, and since then, the Federal Reserve Bank of New York has acted as agent for both the Fed and the ESF in such transactions. Starting in 1978, the ESF and the Fed have almost always intervened jointly.The ESF began operations on April 27, 1934, with capital of $2 billion. Initially, $1.8 billion of the ESF's reserves were maintained in the Treasury's gold account. The remaining $200 million was deposited in a special account at the Federal Reserve Bank of New York as the working balance for investing in gold and foreign exchange.2 The working fund of the ESF has expanded over time, reaching as high as $42 billion in mid-1995.3 As documented by Schwartz (1997), most of the growth in ESF assets has occurred since 1960 and has comprised increases in foreign exchange and securities. As of June 30, 1998, almost 60 percent of the asset total had been financed by cumulative net income, mainly reflecting interest earnings and capital gains on foreign currencies.13. In the last quarter of 1998, Federal Reserve System swap lines were reduced from $32.4 billion to $5 billion ($2 billion with the Bank of Canada and $3 billion with the Bank of Mexico), and the ESF eliminated its swap line with the German Bundesbank. There are no outstanding swaps for either agency. Reasons stated for the reductions included history of disuse, formation of the European Central Bank, and the existence of other arrangements for monetary cooperation.>> justamereBear (04/30/01; 09:09:58MT - usagold.com msg#: 52844) Canuck 52835 Black Blade 52837 Black BladeYes, the Canadians are a bit testy about bullying. Another card Canada holds is potable water. However, when a mouse is sleeping with an elephant, it sleeps very, very lightly, with at least one eye open all the time. Particularly under present leadership, I think few Canadians are unaware of the "Big Stick", "and if you won't give it to us, we will come and take it." All done in the American interest, of course. Covers a lot of sins. To me, it is particularly galling that the Canadian military is being gutted at an even faster rate than the US is gutting its military. But that is what happens in the end game of the game we are all here to watch. Anything is fair game provided we keep the existing power structure in place, and summer will never end, this cold snap is just a blip, so we can sing and dance. Party on. On both sides of the border.CanuckThat post is about as close to my philosophy as any I have seen posted here. IMHO, hall of fame material. There is usually more than one solution to any problem, and if my crystal ball is so omnipotent that I can divine the ONLY solution to this problem, why ain't I already rich? Very Canadian, eh?j'Bear Sierra Madre (04/30/01; 08:54:37MT - usagold.com msg#: 52843) Black Blade...about the Hubbert Report from Colo. School of Mines... The essence of this report will be in our newspapers South of the Border.Especially, the information that the ANWR contains enormous reserves, which will be held in reserve, while Mexico is pumped out and paid in fiat.Sierra WW Oracle (04/30/01; 07:26:11MT - usagold.com msg#: 52842) Why Buffet sold the GSE's (Bloomberg) http://quote.bloomberg.com/fgcgi.cgi?ptitle=Top%20Financial%20News&s1=blk&tp=ad_topright_topfin&T=markets_bfgcgi_content99.ht&s2=ad_right1_topfin&bt=ad_position1_topfin&middle=ad_frame2_topfin&s=AOutS8BU.QnVmZmV0 04/28 19:32Buffett Says `Icebergs' Prompted Fannie Mae, Freddie Mac SaleBy Tom CahillOmaha, Nebraska, April 28 (Bloomberg) -- Billionaire investor Warren Buffett saidthat potential ``icebergs'' in Fannie Mae and Freddie Mac prompted Berkshire tosell shares in the government sponsored entities. Berkshire last year sold nearly all of its 8 1/2 percent stake of Freddie Mac, theNo. 2 buyer of U.S. mortgages, and an undetermined amount of Fannie Mae. Buffett said he decided to sell the shares after he became ``uncomfortable'' withthe risks at the two largest buyers of U.S. mortgages. ``We felt the risk profile had changed somewhat, we're quite sensitive to risk inbanks, insurance companies or government- sponsored entities, there's so muchyou don't know,'' said Buffett. ``We're never sure if there's an iceberg situation ornot. We figured we'd never see it until it's too late.'' Buffett didn't elaborate on what changed his outlook, although he said theprospect of more government regulation didn't prompt his decision to sell. Lawmakers in Washington led by Louisiana Republican Congressman RichardBaker want to regulate the company more closely. Baker introduced a bill thatwould limit Fannie Mae's ability to expand and shift regulation over the companyto the Federal Reserve. Baker argues the company has grown too large andposes a risk to taxpayers. Buffett's partner, Berkshire Vice Chairman Charlie Munger, said Berkshire has aquick trigger when it comes to financial companies. ``Financial institutions makeus nervous even when they tend to do well,'' said Munger. For a link to Buffett's annual letter to shareholders: Story illustration:http://www.berkshirehathaway.com. ausome (04/30/01; 05:12:50MT - usagold.com msg#: 52841) POG almost dead flat POG has hardly moved today.(263.2) What's up? The Invisible Hand (04/30/01; 04:20:48MT - usagold.com msg#: 52840) FT's Barry Riley doesn't understand what's going on http://www.ftmarketwatch.com/news/story.asp?guid={B9EAECB5-9C28-47C4-8C40-30E824561D68}&source=yahoo1 Why America should be more humble…Europe healthier than U.S. or AsiaThe Europeans are being sneered at, and indeed the ECB continues to be troubled by the perverse weakness of the euro, which has exaggerated the inflation problems. But the euro has gained 23 per cent against the yen in the past six months, and the euro/dollar exchange rate could flip at any time. Of the world's economic zones, Europe looks much healthier than the US or Asia. Nobody understands very clearly what is going on. The threat is of a globalised slowdown that leaves national and regional economic policymakers floundering. Politics is running much more strongly than analysis. How severe the problem will prove is hard to say, but we can assume it will take a long time to unravel. Perhaps A/FOA can help? Netking (04/30/01; 04:14:02MT - usagold.com msg#: 52839) @Slingshot slingshot(52834)Re:Coins in General "Generally" good to buy the Silver coins that had previously had a large premium attatched to them above the metal & now don't(for the timebeing). As the metal price moves upwards your premium will move upwards again also. Remember all the Y2K'ers buying up those apocalypse coins in bulk on high premium! get 'em now for much less.As for me & my house at the moment...silver bars in bulk by the kg! working-kirk (04/30/01; 03:51:30MT - usagold.com msg#: 52838) another slight revision Hillbilly and CanuckI hope to buy gold while its at these bargain basement pricesI hope I can get silver since all you guys seem to be buying it up and since I am on a strict money and time bugdet, I hope by the time I have have the money, the price won't have exploded and shut me outart, I make sure my art is gold and silver I don't have to buy a gun because if I need one I can alwayfind a saturday night special the gangs got rid of as a means of hiding evidence. I get the land when I sure it won't get grabbed by the government (Like my previous generation had the misforture to learn)So where does that leave me?Well if things get bad I could head for the hills. Hillbilly, would you mind a working man coming to join you? I can't offer much but I am willing to work for what I get. Unlike many others who just get on the dole.> Canuck (04/29/01; 20:50:24MT - usagold.com msg#: 52835)> I buy gold because it is the most underpriced hard asset > in the world.> I buy silver to protect me in case I am wrong about gold.> I buy wood, art, land, guns, energy and 'hard assets'> in case I am wrong about both. Black Blade (04/30/01; 00:05:37MT - usagold.com msg#: 52837) Lumber battle cuts across U.S. border http://www.oregonlive.com/news/oregonian/index.ssf?/news/oregonian/01/03/lc_12uscan18.frame Snippit:"Why should we continue to turn the energy tap on going south if at the same time we can't export our lumber to the biggest market we have?" asked Gordon Wilson, minister of forests in British Columbia, Canada's top timber-producing province. Canadian natural gas fuels power plants in the U.S. West, and without it, one Canadian timber executive told the Vancouver Sun, the United States better "learn to speak Arabic and read by candlelight."Black Blade: It looks like the Canadians are getting a bit testy over trade sanctions. Many have tried to drive home the point that Canada could be a large energy farm for the US. They could hold all the cards as this energy crisis worsens. ViewYesterday's Discussion.
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