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Usa Gold Regular Archives Collected

Usa Gold Regular Archives Collected

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Published by martijn1234
Regular Archives A/FOA
Regular Archives A/FOA

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Published by: martijn1234 on Nov 15, 2010
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12/10/2012

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Friend of Another
 (9/20/98; 19:03:15 Msg ID:43)
 
The Markets!
 
To All: It's an interesting corner that the Euro people (BIS) have put the US government andthe dollar into. As the only reserve currency, the dollar must fall in value in order to reflate theworld economy. But, a week dollar is exactly what the Treasury doesn't need with theupcoming Euro. Now, all Europe has to do is wait and watch as the markets do their dirty work!If the dollar stays strong, the countries in crisis will sink even lower. In doing so this will createa US trade deficit never before seen in modern times.
 
It is no accident that most of the economies in crisis are many of the chief trading partners of America. It's also no accident that they all are IMF/Dollar advocates. Meaning, they hold littleGold and much US treasury debt as local currency reserves. The US will be forced, bydeteriorating market conditions, to lower the exchange value of the dollar. But, if Greenspanlowers local interest rates, Europe will begin to dump the dollar. For them, they don't need thedollar as a reserve currency anymore! They will hold a small amount of it only as an currencyexchange intervention vehicle.
 
With this new definition for the dollar it will be required to carry a good interest rate. Theyhave the Dollar in a trap that will force the Fed to lower it's value through the foreignexchange window. All the while pushing interest rates up or holding them steady to protectthis reserve currency.This isn't a strange twist as it happened once before during the 70's. Only this time a newworld reserve currency is coming online, giving many countries a choice for the first time. Ithink China can't wait to unload it's US treasury holdings for the Euro.
 
I agree with Another's last post (in the archives) about the vintage wine. Gold is that reservevintage that many people kept trying to open before it's time. By the end of the year, thecurrency wars will bring this fine wine to completion.
 
Once it goes above $360 some major defaults will occur, changing the entire aspect of themarket. Add to this the introduction of the Euro and the old US Dollar gold market willdisappear. Some investors are buying gold for the Y2K problem. I thing the Currency Wars willdestroy the markets long before Y2K does it's deed!
 
Also, I am very excited to hear of this USAGOLD FORUM. I think myself and Another will havemuch participation with this new discussion group! It will, no doubt, be followed by many Goldinvestors. Who knows, perhaps even a Central Banker or Government leader? Thanks FOA
 
Friend of Another
 (9/20/98; 20:09:53 Msg ID:48)
 
TO BNACD:
 
We continue to watch the BOJ to see if they are selling US Treasury debt. I don't think that is
 
going to happen. They will buy gold, they will talk a great deal, but they can't sell US debt heldas reserves. Why? From the beginning Japan has tied it's future to a US dollar world. Theybuilt their economic engine by trading with America using a dollar surplus mode. From a USAviewpoint, that's a balance of trade deficit in American dollar currency. It was always a weekYen (in real terms) that created the demand for goods made in Japan. The huge balance of payments surplus, held by Japan in world reserve currency dollars gave them the reserveassets to grow their economy. As governments manipulated currency exchange rates (knownUSAGOLD Forum that we will follow these events. As Another would say, "We watch this newgold market together, Yes?"! Be assured, he will post here as soon as this site is known to beopen. Thanks as the dirty float) for the benefit of an IMF/Dollar reserve system, this actiongave Japan an enormous advantage in trade and finance. As this has gone on for over twentyfive years, Tokyo could not help but represent a bloated financial system. Today, they havereached an end that no one ever thought would come; the dollar reserve system is ending.As one might expect, Japan having received the largest return for supporting this system, willnow suffer the largest loss. They simply do not know how to play a different game. The Yenwill one day fall with the dollar. Will the BOJ buy enough gold through the BIS to offset thecomplete destruction of their financial system? They will no doubt try, but I doubt their isenough gold out there to make a difference. At present valuations, all the gold held by CentralBanks is worth what, 300 billion dollars? If we doubled or tripled it the amounts would makebut a small speck compared to the loss of the second largest financial system in the world.You see, the current supply and demand for gold as a commodity or weather one CB is buyingor selling some of it today is really a non-event compared to a changing World FinancialSystem. For the regular citizen, gold priced in the many thousands will have little effectcompared to oil priced at $200 or $400 a barrel!
 
My friend, we are coming into changing times as never before. It will be here, on theUSAGOLD Forum that we will follow these events. As Another would say, "We watch this newgold market together, Yes?"! Be assured, he will post here as soon as this site is known to beopen. Thanks
 
Friend of Another
 (9/20/98; 20:48:44 Msg ID:51)
 
BMACD:
Here are a couple of items I read from someone else:
 
"The China Daily published a special report from the Chinese state planning commission thatoutlines a plan to reallocate foreign reserves ratios away from U.S. dollar holdings. Itrecommends reducing U.S. dollars as a percentage of reserves from 60 percent to 40 percent.This suggests U.S. dollar sales of $28 billion. The report went on to say that China shouldprepare for a weaker U.S. dollar on grounds that the U.S.(as a net debtor) consumption boomhas created a Bubble."
 
Also:
 
"CHINA MAY BE FORCED TO TURN RESERVES INTO EUROS: ECONOMIST BEIJING, Sept 3( AFEC/AGENCIES ) - China may be forced to switch much its enormous foreign currencyreserves into the new Euro if the dollar falls in the future, a leading economist was quoted assaying Thursday. While there has been widespread speculation over a devaluation of theChinese yuan, state development planning commission economist Wang Jian said China wouldhave to watch for any fall in the dollar when elaborating its economic policies, the official ChinaDaily newspaper reported. Wang said the US economic boom of recent years was a "bubble,"caused by a massive influx of foreign capital, which could burst when the Euro is introduced onJanuary 1. China has around 140 billion dollars' worth of reserves, with about 60 percentdenominated in dollars, the China Daily said. It also has around 60 billion dollars of UStreasury bonds. Wang said China would reschedule its reserves so there was around 40percent in dollars, 40 percent in the Euro and 20 percent in Japanese yen. China currently alsohas German marks, Swiss francs and yen reserves. The Euro is to be launched with 11European members from January 1 next year. The government has insisted in recent weeksthat it does not intend to devalue the yuan, inspite of the Asian crisis which has undermined itsexports, and that it was ready to use its huge reserves to maintain the official parity. "I think the question of the Euro will be answered by the actions of the official governmentCentral Banks. For a citizen living in Europe and using the Euro, it will become the best of allworlds. Not much different from the American using dollars to buy goods (in discounted realterms) from Japan or any other third world country. Only, now the shoe will be on the otherfoot with the USA trying desperately to sell it's goods to Europe for EUROS. This will beanother strange twist as many/most of Americas foreign goods producers will, by then havestopped using dollars as reserve assets.
 
The outcome of a change in reserve currency is mind numbing. For the small person outside of Europe, they should "Follow in the Footsteps" of others. The holding of physical gold can andwill be considered holding a currency asset as will the holding of Euros. However, the Euro willnot come remotely close to the appreciation of gold as valued against all things. The ECB andthe BIS will make it that way. You sir (or Ms.) will see this come to pass. Thanks
 
Friend of Another
 (9/20/98; 22:02:45 Msg ID:53)
 
BMACD
Before I continue, I want to thank Mr. Kosares for creating this Forum. This effort by USAGOLDwill reward many readers with interesting discussion and debate about the future of gold in theworld society. Michael, thank you!
 
Also:BMACD: In reply to your 20:48. Hashimoto made the comment, but what position do we findMr.Yen in now? I think it was a comment created by political need at the time. What wouldhappen if Japan sold (dumped if you will) their US dollar reserves on the world market and/orbrought Gold with the proceeds? Even if the Federal Reserve purchased some of the debt, itwould no doubt drive down the value of the dollar. But this action would not help theireconomy as they still operate worldwide in a dollar reserve system. The dollar price of goldwould rise, but not enough to liquefy their financial burden. In short, they still have to sell

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