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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 5/3/1999
All times are U.S. Mountain Time

View Yesterday's Discussion.

Christine (5/3/99; 22:47:35MDT - Msg ID:5548)
@OnlyChild
Are you paranoid too, or are you insulting me. Just checking. Don't want to jump to any conclusions. (-:>~

onlychild (5/3/99; 22:40:34MDT - Msg ID:5547)
Oops
Believe

onlychild (5/3/99; 22:37:53MDT - Msg ID:5546)
Christine
I've been reading your posts since you came to this site and I have concluded that you are a very intelligent individual. However, I belive that you are a paranoid fanatic intent on fereting out anything that appears the least bit covert. A regular chicken little, a complete radical...........uh, so, anyway I think you're pretty cool! I'll buy you a beer sometime.

Chicken man (5/3/99; 22:13:40MDT - Msg ID:5545)
Aristotle
Your post required some heavy duty thinking.....I read....reread ...and rereread...hope I got it..

The main point I "think" we differ on is...you are thinking along the line of a curriency "weakening or depreciation of some sort.....I'm thinking a long the line of a curriency "collapse".......worth nothing .....zippo!

When a country got in trouble for printing their script too fast...that is faster than the bench mark script (US$)....the IMF boyz would go in and "straighten things
out"....we could go on and on as to the results, but that is a topic for discussion for another time........the point being there was always somebody to do the "rescueing"......who could "rescue" the largest debtor in the world....and "if" there was ,who is to say they would want to rescue us..? The US was there to rescue Mexico(or should I say Goldman Sachs) with the Brady Bonds.....their script(peso) weakened,but did not collapse....but going back in history...who was there to help France in 1790's or Weimar Germany in 1922 or Bazil in the late 50's....I could go on and on but history has proven that fiat monetary systems do not work.....sure some are gradual devaluations...but with the derrivative exposures of the US banks and Y2K and our massive trade imbalance(debt,iou's markers what ever one calls it)...this is going to unwind very fast and furrious
Please don't be offended by my style of posting....writing and composing are not my stronger suits....and it is not the nature of the chicken man to not love...thank you !


SteveH (5/3/99; 21:34:43MDT - Msg ID:5544)
June gold now...
$287.70 and a large spread too. Crosses both upper and lowre bollinger, she does. Tells me next two hours might see a dollar rise in price. Time will tell. Spread is narrow on the bollingers and a direction is imminent.

Christine (5/3/99; 19:39:58MDT - Msg ID:5543)
@Tomcat--More on NWO by Alan Greenspan
http://www.bog.frb.fed.us/boarddocs/speeches/1999/19990429.htm
Hello Tomcat. I find Tony Blair's tone and words chilling.

Here is first paragraph from text of Greenspan's speech April 29--
"One way to address the issue of the management of foreign exchange reserves is to start with an
economic system in which no reserves are required. There are two. THE FIRST IS THE OBVIOUS CASE OF A SINGLE WORLD CURRENCY. The second is a MORE USEFUL STARTING POINT: a fully functioning, fully adhered to, floating rate world."

Comments:
1. "How is the US able to withstand the changes? Is it even possible? ..... A fully functional, floating exchange rate
mechanism would seem to be a death wish for those with a nasty trade imbalance. ie, the US dollar." (Earl from Kitco)

2. IMHO, it, NWO, is be introduced piece by piece. The question is, what will happen to convince us to accept it. I suspect significant financial trauma. Trauma that was planned some years back

Tomcat (5/3/99; 18:54:48MDT - Msg ID:5542)
Announcement by Tony Blair of the beginning of the NWO and worldwide financial reform
http://38.201.154.108/articles/?a=1999/4/23/70143

If you have ever wondered if the NWO would ever stand up and make itself known then you need wonder no more. Here is the outline for a one-world ruling body. Included are the intentions for international financial reform.

Jon (5/3/99; 17:02:01MDT - Msg ID:5541)
Aristotle - gold in 1000's
Hope you're right. However reminds me of the song "quando,quando,quando???

Aristotle (5/3/99; 16:13:02MDT - Msg ID:5540)
Tomcat and beesting--about 5517
Thank you for confirming that it was of some use. If I am only wasting space, I need to be made aware of that also.

Upon looking it over, I hope the meaning of this comment was clear, "...the slate would be wiped clean of all outstanding government liabilities using all of its Gold assets in an act that would yield the lowest possible price of Gold as needed to balance the books."

This 'lowest possible price' would easily put Gold well into the THOU$AND$.

That's all I have time for at the moment. Hopefully after a long-overdue meal I will be able to get a byte in edgewise through my Internet Service Provider that is always jammed to capacity on Monday and Tuesday nights. Wish me luck.

Fox! Glad to have you join us. It is always a treat to see our Round Table expand in size.

By the way...what's with the DOW? Man, you couldn't drag me into that wild party. The only thing possibly more fragile than a fiat dollar is Market Capitalization. Sheeeeeeesh! Goldman Sachs will have themselves a nice little feeding frenzy tomorrow. I surely join with the others in thanking them for ringing the bell to signal the top. Sure, the DOW could go higher still; but brother, it's already a loooooooong way down, and I'm getting worried about the splash radius!

Gold. Get you some. ---Aristotle


TownCrier (5/3/99; 15:40:44MDT - Msg ID:5539)
Dow jumps past 11,000 on reports
http://dynamic.webpoint.com/news/tribune/story/0,1021,105010557,00.html
Fastest traverse of 1,000 point milestones in market history.
At these heights it could have been any one of us to discover George Mallory atop Mount Everest after 75 years.
See that interesting story here:
http://www.seattletimes.com/news/nation-world/html98/moun_19990503.html

Usul (5/3/99; 15:33:28MDT - Msg ID:5538)
Nostradamus
http://www.cs.uu.nl/wais/html/na-bng/alt.prophecies.nostradamus.html
MK et al,

The Nostradamus prophecies are fascinating but at the
end of the day they do make more sense in retrospect.

Albert Nanomius, associated with the Newsgroup alt.prophecies.nostradamus (as is often the case, this
newsgroup has more noise than signal) has compiled
FAQs which might be of interest at the above link.
From what I have seen on the internet, one would be better
served at the library or bookshop.

One of the fascinating verses, Century II, Quatrain 32,
reads "After the milk of wellbeing, the blood of the people
will flow in Yugoslavia, when war breaks out, as well as
a calamity near Ballenstedt. The [war] cry will be loud
throughout Russia. Thus, then, a scourge will be born near
and in Ravenna.

Now, despite this translation being made many years ago before the breakup of Yugoslavia and Nostradamus having
written originally in the 16th century the Yugoslavia/Russia situation is clear; however, I scratch my head over
Ballenstedt (a small place in Germany) and Ravenna.
Stocks and shares in defence related companies may benefit
in the short term from a war. However, as in WWII, a
prolonged conflict will be a financial drain on the
economy and will not be good for equities. In times like
this, a little gold insurance will be good to own.


Tomcat (5/3/99; 15:12:57MDT - Msg ID:5537)
On your post #5517 regarding the valuation of gold.

This post is truely exceptional. It was better the second time I read it.

Your wrote: "As a result, the price of Gold currently bears no correlation to other real things, and further, gives no insight into the true value (or weakness) of the dollar that
'prices' it. It will be helpful for what follows to recognize that a dollar is valued at what the latest seller determines it to be worth...a candy bar, a dozen eggs, a gallon of gas."

I must admitt that this is such a fundamental truth that it is easy to forget. Thanks for the reminder. Your statement reminded me that the value of the dollar is so very dependent on the flight to quality. But, "quality" is on the decline!

You wrote: "...the price of Gold would move to reflect mankind's confidence (or lack thereof) in the entities that are issuing the proxy currencies..." This forum has become a meeting place where the issue of confidence has become an underlying and central theme. Such strange times when factors like y2k can strike a blow at global confidence resulting in a foriegh flight to quality in the dollar but upon arrival (from their flight) they find quality wanting!

Regarding "proclimation of valuation" to resolve all debts. Perhaps this day is really coming and with it the "Mother of All Inflations". Could this be one of the reasons why private parties retain 80,000 tons of gold? I would expect governments faced with this to outlaw private ownership and we would see the development of financial black markets and the hiding of gold.

Got a shovel?

TownCrier (5/3/99; 15:04:04MDT - Msg ID:5536)
Bridge NY Precious Metals Review
By Melanie Lovatt, Bridge News
New York--May 3--Gold was extremely quiet, with Jun settling up 20c at
$287.60 per ounce after trading in a narrow range.
Traders said that with the stock market "soaring away" again, and with the
UK and Japanese players out for holidays, metals were largely ignored.

--Jun gold (GCM9) at $287.6, dn 20c; RANGE: $288.2-287.0

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

TownCrier (5/3/99; 14:59:03MDT - Msg ID:5535)
IMM currency futures end mixed, yen ebbs sharply
http://biz.yahoo.com/rf/990503/7h.html
Day-end tea leaves.

TownCrier (5/3/99; 13:32:44MDT - Msg ID:5534)
FWN Closing NY Metals
New York-May 3-FWN--William O'Neill, director of futures
research with Merrill Lynch, noted that June gold was locked in an 80-cent
range during the day session and was not able to benefit
from another surge in energy prices.
"Oil hit $19 (a barrell) for the first time since
December of 1997, so people will be keeping a watch on that
for potential inflationary implications," said O'Neill. "But
there wasn't much effect today."
Support for June gold was put at $284.50, while
resistance was pegged at $289.50.

(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

beesting (5/3/99; 13:06:38MDT - Msg ID:5533)
Welcome fox
I for one would like to hear your perspective on how Gold is viewed in Belgium by you and your associates.Also, don't worry about your English,mine is terrible and I was born in the U.S. I refer to my dictionary often,as I'm sure many other posters do too...........beesting

beesting (5/3/99; 12:51:51MDT - Msg ID:5532)
Quote from FOA also bookmarked!
"Even the well written history of paper money,with all it's chronicled destruction cannot convince modern man that Gold can and will fully demoney paper!In our present lifetime."
A written Golden nugget........beesting

fox (5/3/99; 12:41:30MDT - Msg ID:5531)
intro
fox
gentleman,
I am from belgium , watching very carefully the south African market; My language is not the english language, i will surely try to do my best. Best regards to all the publishers in this very highstanding forum ( il y en a d'autres )

beesting (5/3/99; 12:38:51MDT - Msg ID:5530)
President Clinton being sued by 17 congressmen.
http://www.house.gov/paul/press/press99/pr050199.htm
This press release doesn't relate directly to Gold in any way,but prompted a telephone call from New Zealand to our house(U.S.)as it got major television coverage in New Zealand.
My question is out of 435 congressmen/women how come only 17 joined in the lawsuit? Are the others really sheep dressed in modern clothing?

I also second the motion on the floor,if I have voting rights(regarding special posts) I've already personally bookmarked about 20 posts that I thought were outstanding,although they're all outstanding. AragornIII leads my personal list with 7 outstanding contributions.

Aristotle msg.5517 I wish I had the power to vote you on the Congressional Banking committee here in the U.S. they(WE) could use your help.

Gold mine shares seem to be continuing heavy trading at this hour,feels like a 5.6 trillion ton Gold train starting out of the station with a slow climb to ??(10,000ft-dollars)ahead...........beesting

fox (5/3/99; 12:34:09MDT - Msg ID:5529)
anglogold
fox

03/05/1999 ANGLOGOLD, at a briefing on its March results, blamed the
investment community for prolonging the current gold malaise by
urging their clients to sell whenever the price rose - every
rally an opportunity. Executive director Kelvin Williams said
physical off-take of gold worldwide right now was reassuring
with signs of a recovery in both South-East Asia and the Middle
East - proposed gold sales in Switzerland and the IMF already
discounted and unlikely to affect prices. Publisher: Citizen


TownCrier (5/3/99; 10:00:38MDT - Msg ID:5528)
Independent Petroleum Association of America
PRESS RELEASE--April 30

GAS OUT Protesters Should Learn from History, Economics, Independent Oil Producers Say

"If the GAS OUT protestors are truly concerned about gasoline prices at the pump, they need to focus on the ongoing plight of America's independent oil and gas producers -- small business men and women who are being put out of work at record levels," according to Gil Thurm, president of the Independent Petroleum Association of America (IPAA).

For the past sixteen months, a worldwide glut of oil has caused prices to fall to historically low levels -- $10 - $12 per barrel on the national market, half that in some regions. "The price of gasoline, on an inflation- adjusted basis, was lower than it had ever been before in the entire history of gasoline," says Thurm.

Of equal importance is the fact that low international oil prices have wreaked havoc in the domestic producing industry and severely handicapped producers in their efforts to keep competitively priced oil flowing to U.S. consumers.

"We understand that motorists were delighted with extremely low gasoline prices," Thurm says. "But low oil prices have precipitated a wrenching collapse in the domestic petroleum industry that will lead to a rapid rise in imported oil and increased U.S. dependence on unstable Middle Eastern governments. Because so many domestic producers are in serious trouble, we could well see prices spiral upwards in the future after U.S. production is devastated."

Today, explains Thurm, as a result of the prolonged low oil prices, "Hundreds of producers teeter on the brink of bankruptcy. Thousands of people in the producing regions are out of work. The number of workover rigs in the field has dropped 50 percent, while the overall rig count is at a historic low. And spending on exploration and production -- the foundation of our future -- is down 40 percent."

The price uptick to about $18 per barrel -- less than a third of the historic high -- is not enough to encourage a return to drilling, Thurm says, especially when you consider that even this modest rise depends on OPEC countries' keeping their pledge to reduce production and export. "In the past," Thurm points out, "compliance with OPEC quotas has been inconsistent and unreliable."

Even if the industry begins to recover, U.S. producers will be hard pressed to increase production even to the levels seen immediately before the price collapse because, over the past months, they have had to shut in 130,000 wells. "Few of those wells will come back at the same volume they produced before the shut-in," says Thurm, explaining that "when fluid doesn't flow in a well, natural acids corrode downwell equipment and tubing. Even worse, water has a chance to migrate through the field, displacing oil and gas and changing pressurization. In the end, we're likely to have to plug and abandon about half of the shut-in wells -- 65,000 once-valuable national assets that have turned into dead losses."

The result will be "significantly increased dependence on foreign governments for the petroleum that is the lifeblood of our economy," says Thurm. "We're likely to see the result not only in a lower standard of living and people out of work but also in lives lost in another Gulf War." The last time the United States suffered from extremely low crude oil prices was in 1986. The price crisis started a precipitous decline in production and as a result, the nature of the domestic oil industry was fundamentally altered. The decline in production had only recently been arrested. Since 1986, the U.S. has become dependent on imports for more than half its crude oil.

"Gasoline today is still an incredible bargain," he notes. "Even with the uptick, we're still paying less at the pump than we pay for the bottled water we buy in the gasoline station's convenience market. But if we lose America's small independent oil and gas producers, we could be seeing much higher prices at the pump and a return of the long gasoline lines."

TownCrier (5/3/99; 9:46:53MDT - Msg ID:5527)
U.S. manufacturing grows third straight month-NAPM
http://biz.yahoo.com/rf/990503/sy.html
For you NAPM watchers: Growth...NAPM over 50.

CoBra(too) (5/3/99; 9:46:29MDT - Msg ID:5526)
@ Town Crier - Thank you for ringing the bell at the top....
Thank you for bringing it up. Historical precedence in over-heated, -valued, -exuberant... equity markets rang the bell in 1928. History doesn't repeat itself?, but this just might come too close for comfort.
Let's watch RR's resignation cashing in the (in trust, I trust) chips together-imminently?

TownCrier (5/3/99; 8:53:35MDT - Msg ID:5525)
Golden day for Goldman's staff
http://news.bbc.co.uk/hi/english/business/the_company_file/newsid_333000/333963.stm
Thank you for ringing the bell at the top???

TownCrier (5/3/99; 8:46:28MDT - Msg ID:5524)
WTO close to paralysis
http://news.bbc.co.uk/hi/english/business/the_economy/newsid_334000/334298.stm
Interesting squabbling.

USAGOLD (5/3/99; 8:28:48MDT - Msg ID:5523)
Today's Gold Market Report: Canadian Mint Raises Gold Coin Premiums
MARKET UPDATE (5/3/99): Gold backed off slightly this morning as worldwide
markets waited for New York to set the tone for today's trading. With the hullabaloo of
International Monetary Fund and Swiss sales behind us, the gold market is now
concentrating on rising oil prices and their effect on the overall inflationary picture
worldwide. The market is also focusing on the enormous short position built into this
market -- a position that will have to be covered at some point. There is also the problem of
enormous monetary growth for the dollar and growing concern that the U.S. economy is
overheating, the large increase in gross domestic product announced Friday being the latest
indicator. These are just a few of the more immediate concerns as we kick off the week.

One of the more interesting developments over the weekend was the announcement by the
Royal Canadian Mint that it was raising premiums on its gold and silver coinage. The Royal
Canadian Mint in an attempt to deal with the stagnant gold price in terms of covering their
production costs and making a profit announced that it would start pricing its coins at spot
+$10 to market-makers, an increase of about $1.50 per one ounce coin. The United States
Eagle coinage has already experienced price rises at the wholesale level owing to the
burgeoning demand related to year 2000 investor preparations. The Canadian situation
points to production costs rising while gold itself has not responded to inflationary
pressures. Many believe the gold price is being manipulated down by various financial
firms in Europe and the United States. The premium rise is a natural market reaction to the
artificially maintained price. The U.S. Mint has dealt with the same problem by rationing
gold coins to its market-makers -- a strategy which has driven up premiums as well,
although in the case of U.S. coins, it is the market, not the mint, which has driven up
premiums.

Economists have warned that if the gold price is held down artificially in a strong demand
environment, the available supply at some point is absorbed into the market and new
demand goes unmet. Eventually the gold supply without the natural stimulus of rising price
and its corollary rising availability will experience shortages. The Canadian Mint's response
is another way of achieving the same end. If the spot price is not going to allocate supply
and demand properly then the premiums will. Premiums on the smaller one quarter and
one-tenth ounce gold coins, popular with Y2K investors, are likely to go even higher on a
percentage basis.

That's it for today, fellow goldmeisters. Have a good day.

Please go to our ORDER FORM or call Marie at 1-800-869-5115 for a Free Copy of
News & Views -- our widely read monthly newsletter -- and introductory packet on gold
ownership.

TownCrier (5/3/99; 8:06:08MDT - Msg ID:5522)
U.S. Treasuries open lower, new lows possible
http://biz.yahoo.com/rf/990503/ky.html
Coming to terms with the damage done Friday.

Jon (5/3/99; 6:37:20MDT - Msg ID:5521)
holiday in UK
Steve H: believe today is a bank holiday observed in London, and accounts for lack of quotes.

Junior (5/3/99; 5:37:37MDT - Msg ID:5520)
Gold Eagle Site Address
http://www.gold-eagle.com/cgi-bin/gn/get/forum.html

SteveH (5/3/99; 4:39:44MDT - Msg ID:5519)
Slow night on gold yes.
$287.80. June gold that is.

POG is manipulated by SYSOPs of gold bullion discussion groups so that people have subject matter and a cause of discussion. Were gold to rally to our dreams posters would be too busy spending their money to discuss underdog issues of manipulation and collusion. That simple. Got discussion.

The Invisible Hand (5/3/99; 4:36:32MDT - Msg ID:5518)
A date to remember--June, 1999
A date to remember--June, 1999

Christine,

You are writing in message 5510 that the June gold rumor is being discussed in Gold-Eagle.

What's the address of Gold-Eagle?

The IVH



Aristotle (5/3/99; 3:46:55MDT - Msg ID:5517)
Chicken man and Tomcat--On the valuation of Gold
Essentially the question you pose is how should we value Gold given our current monetary situation...should the focus be on current money supply or national debt, or a combination, or something else entirely. Wow, a question for the ages! I won't pretend to have a solid answer for this, but maybe I can pose some additional thoughts that might help stimulate some additional discussion that might lead to a resolution that is to our satisfaction. Let me stress that this is not intended to be a comprehensive treatment of the pertinent factors, but merely a general framework from which our many industrious thinkers may expand, or spot the fallacy and provide the necessary course-correction.

To begin, let us admit that the revaluation of Gold would be done to repair the ills brought about by the global use of competing fiat currencies that have no means with which to prove their value other than by demonstration of the latest contract or transaction they were used to settle. Otherwise, without defining a purpose, anything goes. As things stand, each nation-state has a money supply in circulation or on deposit, and has a net national debt or surplus on the ledgers.

Following the demise of the international Gold-standard in 1971 (prior to which time the dollar was defined as having the value of 35 per troy ounce, and other currencies were pegged at some defined exchange rate vs. the dollar in accordance with the Bretton Woods agreement as facilitated through the IMF), we must further admit that these many currencies have experienced the spectrum of pegs through free float against each other, none immune to some form of manipulation. The form of manipulation also ran the spectrum to serve the desired objective of the moment; from 'beggar thy neighbor' devaluations for facilitating exports, to the opposite attempts at maintaining purchasing integrity through exchange rate strength. As each nation manipulated in what they felt to be their best interest, there was no one nation with a sole claim on the ownership and fate of Gold, yet as an independent currency while all the world was floating, Gold as 'priced' in other currencies experienced a de facto manipulation. And as has already been demonstrated by those of you more capable than I, the start of the 1980's and Gold at $850 brought about more direct and aggressive manipulation of Gold as a currency through pricing on the futures markets, as with key commodities such as oil. As a result, the price of Gold currently bears no correlation to other real things, and further, gives no insight into the true value (or weakness) of the dollar that 'prices' it. It will be helpful for what follows to recognize that a dollar is valued at what the latest seller determines it to be worth...a candy bar, a dozen eggs, a gallon of gas. This is similar to the manner in which common stocks, such as IBM or tulips.com, receive their valuation by the latest terms of exchange.

With that background in place, let's tackle the task at hand, namely, estimating the appropriate valuation for Gold. I suggest that this would be brought about in one of two possible ways: through open market pricing sans manipulation, or else through official proclamation--"lightning in the night," to borrow words from a greater mind than mine.

Open market pricing is the easiest to discuss, as there is nothing to discuss. Under our premise that Gold is to become the numeraire with the national currency acting as the transactional proxy in future commerce, the price of Gold would move to reflect mankind's confidence (or lack thereof) in the entities that are issuing the proxy currencies and 'keeping the books' (sorta like the early years of banking and blacksmiths.) While this method might immediately suggest a strong tie to the outstanding money supply as a pricing influence, the 'confidence factor' would surely address some level of the national debt or surplus.

Now for the tough one: an official proclamation of valuation coming as suddenly and unexpectedly as are all monetary policy decisions when brought forth for the world's attention. Rather than leaving the revaluation to the uncertainties and perfection(!) of the open market, the government would utilize this official revaluation as an opportunity to achieve specific objectives in the national interest. Clearly, to assist our estimation, we must identify the objectives that may be served in addition to any socio-political pressures that may be brought to bear.

To be sure, clearing the books of any national debt would be an objective, and therefore an opportunity not to be missed. Which debt would be chosen? The sum of all outstanding Government Bond liabilities, or only those in foreign hands, or would an adjustment be made for assets such as the total value of other nations' bonds and for outstanding loans to other countries? If this last option were chosen, and the nation's Gold were divided into the net national debt, the slate would be wiped clean of all outstanding government liabilities using all of its Gold assets in an act that would yield the lowest possible price of Gold as needed to balance the books. "So what of the outstanding money supply?" you ask? Now I already know that you're not going to like hearing this, but here goes... Technically, that which is left after the government settles its net debt would not need Gold backing because it is a self-extinguishing, temporary money supply that came into being as bank loans. As the people endeavor to pay back these same dollars they borrowed from their Main Street banks, the resulting money annihilation through ledger squaring, coupled with the need to pay the loan interest soon reveals a vanishing currency deflation of epic proportions. This could be tempered as private citizens with Gold may choose to exchange it for new issue of dollars from the government at this new valuation, which would then become part of a permanent money supply. It should be readily apparent that the Government could also choose to settle its liabilites with only a fraction of its Gold assets, resulting in a much higher price for gold than in the above example. This would give them real money reserves with which to conduct future operations until such time as they manage to balance annual spending with tax revenues. (Conceivably, they could pay off the debt with one ounce, but the price of Gold would then be $5.6 trillion / ounce which would completely wipe out the purchasing power of the dollar at home and abroad.)

In the end, even with a governmentally established revaluation, the prices charged for goods and services would be established on the open market as they are now, and would be a function of the supply of that particular nation's gold-proxy transactional currency. A little gold goes a long way, my friends!

Gold. Get you some. ---Aristotle

Buena Fe (5/3/99; 1:10:25MDT - Msg ID:5516)
Usul (5/2/99; 6:36:48MDT - Msg ID:5482)
Bang-on my friend your could not have said it better!!!

Follow the money (secret buyers of gold), look through the smoke screen of CB/IMF sales and we will find the masters of this financial illusion called "Wall Street-no inflation-low interest rate-easy money paradise".

They know, like the engineer/architect of the Titanic, that the ship has hit the proverbial ICEBERG and there is no other way but to man&woman the life boats (ie gold).

You don't have to be wise to get a wise man's results. Just do as a the wise man does and it will all work out!

Keep Well All!



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