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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 1/4/2003
All times are U.S. Mountain Time

(Yesterday's Discussion.)

silvercollector (01/04/03; 23:36:44MT - usagold.com msg#: 93454)
Black Blade, all
I read that article this morning and there is the other side of the coin.

What if, Germany and Japan go into a further tailspin and what if the US mops up Iraq in a 'couple weeks' and oil goes back down to the low-mid 20's/bbl?

The race (currency) to the bottom as we jest about does not necessarily imply that the dollar is the first to hit the skids.

Here's a wild, wild guess to what I feel might happen over the next 3 months. The drumbeat gets louder and louder as Jan .27 approaches (first UN report). Who knows, Hussein may blow it before that date. Unless Hussein suddenly hands over all his WMD and waves a white flag, war is on by mid-Feb at the latest. Oil and gold is very volatile until that date, oil peaking in the upper 30's, who knows, low 40's and gold breaking the 354 resistance and catching the next breaking point somewhere between 380 and 400.

Okay, let's pick a date for argument sake, Feb 8, the 'allied' forces begin bombing the daylights out of Iraq.

Now we have 2 scenarios to choose from, war goes well, war doesn't go well, depending on which side of the fence you stand.

Now here's what I read in an article this afternoon; Hussein lets loose everything he has on Israel, he whats to go in history as the man who wiped it out. All the terror that has been pent up since 911 is released in the US and its allied countries; suicide bombers, antrax, the missing 'suitcase nukes', dams, bridges, the dozens and dozens of unknown terrorist acts that are unstoppable.
The US counters with nukes on Iraq and it is vaporized in half-an-hour. Who knows where this goes, one does not really want to believe it even remotely possible.

The other outcome is a quick decisive victory by the US without complications.

The implications to gold and oil in either case is rather obvious and quite opposite. So given that you and I and a host of others are into physical (as we should) and holding interests in gold and energy companies how does one play this out?

I frankly am getting a little nervous. I am getting 'butterflies' in being 'long' in any one direction.
I am interested in how you (and others) plan to 'play' the game.

Maybe half the planet will be crystallized and it won't matter, pray to TPTB (not those ones) that this is not the final outcome.

Yours truely,

'Nervous Nellie'


Black Blade (01/04/03; 21:35:20MT - usagold.com msg#: 93453)
US dollar faces year of living dangerously
http://www.timesonline.co.uk/article/0,,630-531381,00.html

Snippit:

IN A very uncertain financial world, there is one thing about which most people agree: the US dollar is overvalued, and on a downward slope. The drumbeats have been getting louder in the past few weeks. The price of gold has risen sharply as investors have looked for safer places to park their funds; the new year forecasts from the world's currency analysts were almost universally pessimistic about the dollar; the gloom-and-doom merchants have been dusting off their sackcloth. The only real debate seems to be about whether the currency is set for a gentle slide, or for something more dramatic. There are three main reasons for this weakness. The most important is to do with economics. America's export performance has been deteriorating rapidly for the past four years, with the result that it is now running an enormous deficit on its current account. That's no problem so long as foreign investors are happy to finance the deficit by buying more dollar assets. But if they decide for whatever reason that they have had enough, the deficit will have to shrink — by a fall in domestic demand, taking the pressure off imports; by a fall in the dollar, or most likely by a combination of the two.

Black Blade: Interesting article. The US dollar is grossly overbalued now and must devalue even as foreign currencies work furiously to devalue their own currencies. That leaves gold.



Cavan Man (01/04/03; 20:39:19MT - usagold.com msg#: 93452)
Cavan Man 93450
Pardon moi for clumsily mixing metaphors.



Aristotle (01/04/03; 20:30:38MT - usagold.com msg#: 93451)
Cavan Man
Heh heh heh... I'm sure there are more times than not when you'd sooner BOX my ears than tolerate my spectral contributions. Through it all -- good cop/bad cop -- I'm glad you ultimately know where my heart is aligned. Thanks for hearing me through the long years!

Gold. etc., etc. --- Ari

Cavan Man (01/04/03; 20:17:23MT - usagold.com msg#: 93450)
Hello first time visitors!
For any of you reading here and living in or hailing from the midwest or midsouth/south, this might be (I am speaking about the gold market) your last and best chance to, "cut a big hog" before the deluge. Don't look this gift horse in the mouth.

Cavan Man (01/04/03; 20:12:22MT - usagold.com msg#: 93449)
Belgian 93428
C'est bon! Holding a few Xcellent Jrs with my hand on the trigger but, "seriously folks"....."let's get physical, physical". Thank goodness disco is kaput.

Cavan Man (01/04/03; 20:08:27MT - usagold.com msg#: 93448)
USAG93445
Now, that's the Aristotle I've come to know at this board and respect so very much 'lo these (almost) four years. Yes, it has been that long. "Who loves 'ya baby?"

Aristotle (01/04/03; 20:05:53MT - usagold.com msg#: 93447)
Belgian #93428
Trying as hard as I might, I can't see any way to improve upon the parts and the whole of your beautiful commentary.

For "lousy english" you sure know how to capture the subtle importances which are all too often lost on others. For example:

= = = =
The euro doesn't want to be seen as being "backed" (!!!) by its Euroland Gold exchange reserves. Gold-backing is an outdated notion from the goldstandard era. The euro wants to be the currency that is *** aligned *** with a Free Physical Gold Market !The association of euro with Physical Gold instead of the dollar associated with paper-contract-gold !

......When The Physical Free Gold Market is understood in relation to the organizing euro-currency...you will change your vieuw on that notion of "Gold-backed". Forget about the dollar-view of "goldstandard". This thing never worked but nevertheless existed for decades ! It will take decades before we might conclude that the euro/gold/oil concept has its flaws or is rightout unworkable. But at present we have no other choice than to do something drastic about the global monetary monstrosity.
= = = =

I can think of a short list of posters who are surely singing your praises right about now for that good delivery. I'm one of them, and jolly glad to have you around to help chew the fat.

Gold. Get you some for best *alignment*! --- Ari

The Invisible Hand (01/04/03; 19:39:57MT - usagold.com msg#: 93446)
Still no evidence of WMD in Iraq, so let's bomb them
and threaten to bomb Korea

http://news.bbc.co.uk/2/hi/middle_east/2627593.stm

In a further escalation of tension aircraft taking part in US-British patrols attacked military communication sites in the south of Iraq.
The US military said Saturday's strike, on targets south-east of Baghdad, was "in response to Iraqi hostile acts".
But an Iraqi military spokesman insisted the planes had hit civilian targets.


http://news.independent.co.uk/world/asia_china/story.jsp?story=366462

According to a South Korean newspaper, Munhwa Ilbo, Seoul is presenting a "three-stage" mediation proposal – a US guarantee of the North's security and fuel oil supplies in return for an end to the nuclear weapons programme; international economic assistance; and a multinational security guarantee for the North, including from China and Russia.
But the Bush administration has repeated that it will not negotiate another deal with North Korea, which it says cheated on a 1994 pact. "We have no intention to sit down and bargain again, to pay for this horse again," said the State Department spokesman, Richard Boucher. "We are not entering into negotiations ... to get them to commit to something that they've already committed to."
North Korea blames the US for the dispute, which it said yesterday was serious and unpredictable. Its ambassador to China repeated demands that Washington agree to a non-aggression treaty.
==
wouldn't like to be short on gold on Monday.


Aristotle (01/04/03; 19:33:28MT - usagold.com msg#: 93445)
Dollar Bill #93358
I've read every word of your brief post. Four times, just for certainty.

Sometimes it's helpful to simply hear someone say, "I understand what you mean."

Buddy, I *completely* understand what you mean.

If it's any consolation to appease your frustration with this sorta thing, consider this refreshing thought about the folks who DID design the bridge, and who are letting some traffic flow during this final phase of construction: They most assuredly engaged in a design phase rich with contingency forethought that provided for a robust construction phase which could withstand the wind that troubles you so.

Let it blow, and toss your hat in the air, feeling all the better for your own clear perspective!

Now, in good turn, do you understand me?

Gold. Get you some. --- Ari

Black Blade (01/04/03; 19:13:52MT - usagold.com msg#: 93444)
OOPS!!! I Mean't Mr. Bill

Sorry about that. I mean't to direct that last post to Mr. Bill. Ah, a Bill here and a Bill there and soon you have a lotta Bills. Just kidding.

- Black Blade

Black Blade (01/04/03; 19:11:51MT - usagold.com msg#: 93443)
Re: Dollar Bill - The Euro

I am neither for or against the Euro. Personally I am surprised that it has apparently worked (so far). I am interested to see how long the Euro will function as a currency given that there are now 12 nations with different political systems, cultures, justice systems, fiscal policies, economic needs, etc. At some point I think that these differences will either have to be resolved with a single European government having all political control over all the participating nations thereby giving up national sovereignty or the rules will have to be in constant flux weakening the alliance. But so far I have to admit it appears to have successfully held together. The real test now is what happens as the region's economy suffers and nations pick sides over possible war and threats of terrorism. For the sake of the people and all involved I hope that they are successful though I have my doubts.

- Black Blade


Black Blade (01/04/03; 18:59:32MT - usagold.com msg#: 93442)
Many face cold winter without heating aid
http://www.boston.com/dailyglobe2/004/oped/Many_face_cold_winter_without_heating_aid+.shtml

Snippit:

FOR THE MILLIONS of poor, elderly, and handicapped Americans who rely on the Low Income Home Energy Assistance Program as a lifeline in times of extreme weather, this is going to be a difficult winter. The program was established in 1981 to ensure that families living at or below the poverty level would not be without heat during the winter's coldest months and could avoid facing life-threatening decisions about rent, food, medicine, and warmth. Last winter was mild, and home heating costs were lower than normal. Yet many states had record numbers of energy assistance program applicants due to the lagging economy. This year has not seen a reduction in the number of applicants, and forecasters say that this winter will be harsher than last. The first band of winter storms has already marched across the country. According to the latest Energy Information Administration predictions, households may face heating expenditure increases of 31 percent for natural gas, 17 percent for propane, 13 percent for electricity, and 41 percent for heating oil. The expected rise in heating oil costs is particularly alarming for the Northeast because we consume 75 percent of the nation's heating oil. This means that if prices rise significantly due to cold weather or reduced supply, or conflict in the Middle East, families already in economic distress will be forced to tighten their belts even further.

Black Blade: This is just the tip of the iceberg so to speak. The economy is in a shambles and energy costs are forcing many to choose between energy and food. Elitist environmentalists are ecstatic of course. Gives credence to the old bumper sticker "Let The Bastards Freeze In The Dark". Just a sign of the times. As always, be prepared for the "New Great Depression". Hmmm…



Simply Me (01/04/03; 18:52:48MT - usagold.com msg#: 93441)
@ Paper Avalanche
What do the items on this list have in common?

Education
Health Care
Movie tickets
Food
Gasoline
Home energy
Insurance
Housing

Answer: None of them is made in China

Hmmmm....
Simply

Paper Avalanche (01/04/03; 18:46:23MT - usagold.com msg#: 93440)
The bigger the lie, the more people who believe it...
http://quote.bloomberg.com/fgcgi.cgi?ptitle=Top%20Financial%20News&s1=blk&tp=ad_topright_topfin&refer=topfin&T=markets_box.ht&s2=ad_right1_topfin&bt=ad_position1_topfin&box=ad_box_all&tag=financial&middle=ad_frame2_topfin&s=APhcoThVJR3JhbWxp
The quote in my subject line was taken from Hitler, yet is just a true today.

Snip:

"The Fed has said it ``regards the price index for core personal consumption expenditures as the most realistic indicator of actual inflation,'' Gramlich said. That indicator shows that inflation has averaged 1.7 percent per year over the past seven years; subtracting the measurement bias implies ``a true inflation rate close to zero,'' Gramlich said. Fed officials have said that price indexes can overstate inflation by as much as 2 percentage points."

I would ask anyone who has the data to support my request to provide me with any of the following consumer items that have averaged an annual increase of 1.7% for the last seven years:

Education
Health Care
Movie tickets
Food
Gasoline
Home energy
Insurance
Housing

When you realize that you are being lied to you can then embrace the truth. The truth is that the gubmint (owned by its creditors, the Fed, since it has been in bankruptcy since 1934) lies to the sheeple and does so activley so as to have such things as the COLA (cost of living adjustment) to such "benefits" as social security only increase by the "offically reported inflation amount" while true inflation in a definite multiple of this reported amount.

My new years resolution is to post to this forum from outside the soon-to-be-US-concentration-camp in a few months.

Take care.

Paper Avalanche



Mr. Bill (01/04/03; 18:41:21MT - usagold.com msg#: 93439)
@Black Blade - Euro
Tell me. What is your take on the euro. Are you for or against. And why?

Black Blade (01/04/03; 18:36:41MT - usagold.com msg#: 93438)
Police Break Up Food Protest in Zimbabwe
http://abcnews.go.com/wire/World/ap20030104_563.html

Snippit:

HARARE, Zimbabwe Jan. 4 — Police fired tear gas and charged crowds with batons to quell rioting in a food line in western Zimbabwe, witnesses and the state-run media said Saturday. The clash involving hundreds of people waiting in the line was the most serious violence since severe food shortages hit the troubled country in recent months. Zimbabwe is experiencing s food crisis that threatens some 6.7 million people more than half the population with starvation. The situation in a nation once known as the breadbasket of southern Africa is blamed on drought and a collapse of agriculture after the government's confiscation of white-owned farms as part of its land-reform program. As a result of the agricultural crisis and the general collapse of the economy, long lines at stores have become commonplace with people lining up by the hundreds to buy scarce corn meal, sugar, milk, cooking oil and meat. Many leave empty handed when supplies run out. Hard currency and fuel also have become scarce in recent weeks as Zimbabwe suffers its worst economic crisis since independence in 1980. Inflation and unemployment have soared. Essential imports have been sharply curtailed, causing black market trading in fuel, food and other goods at up to ten times the government-fixed price.

Black Blade: In Zimbabwe too. Nothing is mentioned about any "beer shortages" though.



Black Blade (01/04/03; 18:24:51MT - usagold.com msg#: 93437)
Government bonds, gold oddly in sync
http://www.jsonline.com/bym/invest/jan03/107937.asp

Snippit:

Investors longing for a return to normalcy need only look at the oddly synchronous performance of gold and bonds to know that something out of the ordinary is still going on across global financial markets. Under most circumstances, what's good for the yellow metal is anathema to long-term debt, since gold traditionally rallies during periods of rising inflation. Conversely, high inflation seriously undermines the value of fixed-income securities, typically sending bond prices lower. During the last bull market in gold, Treasury bonds actually lost money on a total return basis over the five years through 1981, despite yields averaging more than 10%. In 2002, however, long-term Treasurys returned almost 17% while the average gold mutual fund soared 62%. In other words, gold and high-quality bonds moved decisively in the same direction. Elsewhere, stocks declined for the third year in a row for the first time since the 1930s and money market mutual funds barely eked out positive returns after expenses.

Two factors account for the simultaneous bull markets in government bonds and gold. First, the bursting of a speculative asset bubble in equities three years ago unleashed deflationary pressures that still are working to the advantage of higher-quality bonds. But even as Treasury securities booked double-digit gains, portions of the corporate sector languished. In fact, the average junk bond mutual fund actually lost about 2% last year. The reason for the strange divergence within the fixed-income group also explains why gold finally broke out of its 20-year bear market.

Recently, however, investors found themselves in a much different situation. After a powerful five-year bull market, the dollar began trending lower, thus removing what had been a dependable port in the storm. Meanwhile, the prolonged economic slump in the U.S. made Wall Street a decidedly inhospitable place. Finally, extraordinarily accommodative monetary policy by the Federal Reserve sent cash yields tumbling to around 1%. Investors have to put their money somewhere, and with the dollar, stocks, lower-grade corporate bonds and cash looking unattractive, debt and gold became the investments of choice. The question now is whether the bull markets in those sectors have further to go, or if buying at current levels would be a classic example of getting in near the top. Although gold prices are up 25% from a year ago, the metal has broken out of its long-term downtrend. Supply and demand characteristics also look favorable. Gold prices would be especially strong if the looming conflict with Iraq spun badly out of control. Even when geopolitical tensions ease, the world will remain a more dangerous place than it seemed in the 1990s. That factor alone could compel investors to permanently raise their allocation to gold.


Black Blade: Add into the mix fast and furious energy price increases with little of no relief (possibly for several years), an equities market hurtling into oblivion, record levels of all debt (and rising exponentially), rising unemployment, lost consumer confidence, a real estate bubble precariously balanced on the point of a sharp needle, and a world where terrorism is a daily fact of life. Yeah, I can see why people would prefer to have some precious metal as a backup.



The Invisible Hand (01/04/03; 18:10:10MT - usagold.com msg#: 93436)
Independence and ownership of the national euro CB's

According to the paper "progress Towards Convergence 1996" of the European Monetary Institute quoted by Darren Williams and Richard Reid in; "A central bank for Europe" in: Paul Temperton (ed.), "The euro", London , John Wiley, 1998, 2nd ed., 123, p.134,

INSTITUTIONAL independence means that the rights of third parties to:
- give instructions to NCBs (national central banks) or their decision-making bodies
- approve, suspend or defer decisions of the NCBs
- participate in the decision-making bodies of an NCB with a right to vote; or
- be consulted (ex-ante) on NCBs decisions
are incompatible with the Maastricht Treaty

PERSONAL independence means that the statutes of the NCBs should ensure that
- governors of NCBs have a minimum term of five years
- a governor of a NCB may not be dismissed for reasons other than that he/she no longer fulfils the conditions required for the performance of his/her duties or if he/she is guilty of gross misconduct
- other members of the decisions-making process of NCBs have the same security of tenure as governors

FUNCTIONAL independence requires the statutory objectives of the NCBs to be in line with the ESCB (European System of Central Banks)'s objective, i.e. price stability.

No third parties can thus give injunctions to the NCBs which must try to achieve the ESCB's objective of price-stability. Who owns them? Either they own themselves or the ESCB owns them.

Who owns the ESCB and the ECB? The ECB has been modeled on the German Bundesbank and has thus control over euro-area monetary policy. The French wanted however a check on the ECB. To that effect Euro-X has been instituted as a counterweight to the ECB. This is the group of finance ministers of the euro-area countries. Theoretically Euro-X could have control over fiscal policy. In practice national governments retain control over their own country's fiscal policy. Furthermore, Euro-X's room for manoeuvre is limited by the operation of the Stability and Growth Pact; the general need to reduce budget deficits further; and the views and actions of the ECB ((Paul Temperton, "Euro-X", in: Paul Temperton (ed.), op. cit., 145, pp. 145-146)

TENTATIVE CONCLUSION:
The monetary policies NCB's cannot be controlled by the national governments who cannot even control their own fiscal policies because they have to follow the views and actions of the ECB. Ownership is about being the boss and being able to tell what to do. This prerogative seems to belong to Dim Wim. Criticism most welcome.

Black Blade (01/04/03; 18:06:32MT - usagold.com msg#: 93435)
Turkey Backs U.S. Military Deployment
http://news.yahoo.com/news?tmpl=story2&cid=540&ncid=736&e=3&u=/ap/20030103/ap_on_re_mi_ea/turkey_us_iraq

Snippit:

ANKARA, Turkey - President Bush is right to send ground forces to the Persian Gulf to pressure Iraq into disarming, but Turkey is wary about hosting a large number of U.S. troops, the foreign minister said Friday. "The United States is our ally but there might be issues on which the interests of allies do not meet," Foreign Minister Yasar Yakis told NTV television. "It would not suit us. Then, Turkey would become a country opening a front against its neighbor." About 50 U.S. warplanes fly regular patrols over northern Iraq from Incirlik air base in southern Turkey, where 1,500 U.S. soldiers are based. Support from Turkey is considered key to any U.S. operation against Iraq. Using Turkish bases for a ground attack would give the United States the ability to attack from both the north and the south, surrounding central Iraq, Saddam Hussein heartland of support. The government earlier said that it would make a decision on a troop deployment after U.N. inspectors checking Iraq for weapons of mass destruction release their report in late January. Still, Yakis said he supported U.S. troop deployment in the Middle East. Washington has already deployed thousands of troops to the region. "You can't tell Iraq 'disarm or else' from a distance," Yakis said. The United States "is doing the right thing by narrowing the circle around it ... and showing that there is no place to escape." State Minister Kursad Tuzmen is expected to visit Baghdad next week on a similar mission.

Black Blade: Looks like a two front war against Iraq. If the US does not attack then there are more than a few nervous countries who have given support who will fear future retaliation by force sympathetic to Saddam.



Black Blade (01/04/03; 17:55:04MT - usagold.com msg#: 93434)
Venezuela Strike Leads to Hoarding as Shortages Mount
http://quote.bloomberg.com/fgcgi.cgi?ptitle=Energy%20News&s1=blk&tp=ad_topright_energy&refer=topfin&T=markets_box.ht&s2=ad_right1_all&bt=ad_position1_energy&box=ad_box_all2&tag=energy&middle=ad_frame2_energy&s=APhWr6BaWVmVuZXp1

Snippit:

Caracas, Jan. 3 (Bloomberg) -- After waiting in line eight hours to fill his truck's tank at a Caracas gas station, Jose Torrealba put some of the gasoline he bought into plastic jugs and offered to sell it for 10 times what he paid. ``I'll sell half and use the other half myself,'' Torrealba, a tow-truck driver, said before an armed soldier ordered him to move his vehicle. As Venezuela's monthlong national strike has led to shortages of food, drinks and gasoline, Torrealba and others are hawking scarce goods for as much as 20 times their normal price. President Hugo Chavez has refused to allow the hardships to force him to yield to demands by opposition union, business and political leaders to quit or call early elections, and yesterday appealed for international support to help break the strike. ``Chavez is completely underestimating the economic affects of the strike,'' said Vitali Meschoulam, an analyst with political risk consultancy Eurasia Group in New York. ``The economic situation will deteriorate in the next few days and weeks, and that will soften his position.''


Corn flour used to make many traditional Venezuelan dishes is also scarce, prompting many shoppers to stockpile when they can find it. Some stores have begun rationing the staple to conserve their supplies. ``I make my orders as usual, but I don't know if they'll actually arrive,'' said Nelson Marcos, a manager at the Los Campitos supermarket in El Rosal, a Caracas neighborhood. ``There are lots of things I can't keep in stock.'' Soft drinks, beer, flour, meat, and dairy products are among goods that are becoming increasingly difficult to find, said Marcos. That has made shopping a logistical nightmare for shoppers. Carlos Dominguez visited several Caracas supermarkets in two days to stock up on food. ``I'm doing my regular shopping and building a food reserve,'' Dominguez said, as he took four liters of long-life milk from a shelf. ``I'm very worried that if the strike drags on things will get worse.'' Efraen Suzzarini, who runs a small bar in the El Valle neighborhood, says he saw the beer-shortage coming and stockpiled enough beer to last his clientele for a few days. He also scoured nearby towns until he found a wholesaler almost two hours outside of Caracas who would sell him more beer at normal cost. To compensate for the cost of renting a truck to do his own shipments, he's raised beer prices by more than double to 1,400 bolivars a bottle for take-out purchases.


Black Blade: The worst part is a "shortage of beer!!!" As always get out of debt, stash enough emergency cash for several months expenses, accumulate Gold and Silver portfolio insurance, and start a storage program of nonperishable food and basic necessities.




Black Blade (01/04/03; 17:53:39MT - usagold.com msg#: 93433)
Gasoline, Heating Oil Output May Be Cut
http://www.reuters.com/newsArticle.jhtml?type=businessNews&storyID=1988401

Snippit:

WASHINGTON (Reuters) - U.S. refiners will be forced to significantly reduce their production of gasoline, heating oil and other petroleum products if Venezuela's oil workers strike drops American crude inventories another 8 million barrels, a U.S. government energy agency warned. U.S. oil inventories fell 9.1 million barrels last week to 278.3 million barrels, close to a 26-year low, as striking workers in Venezuela slashed oil shipments to the U.S. market and cut into crude inventories. The Energy Information Administration, which is the Energy Department's independent analytical agency, said U.S. oil inventories are close to what is considers "the lower operational" level of 270 million barrels for refineries. "Without more oil into the system, crude oil inventories are likely to be drawn down even further, until refinery throughputs will have to be significantly curtailed," EIA said in its weekly oil report released on Thursday. "There is little room to draw upon product inventories for any significant amount of time. This would fuel a continued rise in product prices," the agency said.

Black Blade: More critical for the US economy will soon be rising electricity and NatGas costs. With the US gearing up for war it is unlikely we will see the SPR tapped anytime soon. Meanwhile the Venezuelan strike continues and several producing fields have effectively been shutdown and will take several months to recondition these wells for a resumption of production. Some marginal wells will probably never be recovered. It could get very "interesting".



Mr. Bill (01/04/03; 17:53:20MT - usagold.com msg#: 93432)
@Belgian msg#: 93428 - Euro
One can always say no. Why do we have to piss away time on the Euro? Just another bogus buck. Why not cut to the chase and go with gold. Of course the boys following the plan might be a little upset. After all they get their jollies in fiat. Not to mention how easy it is to make money when everyone buys into the illusion that there is really something of value being held.

I say, drive a stake through their heart. These vampires deserve no less. Always wanting something for nothing. And giving even less in return. It is time for their time to end.


USAGOLD / Centennial Precious Metals, Inc. (01/04/03; 17:52:34MT - usagold.com msg#: 93431)
$14.95 retail, get yours directly from the author for $5.95
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