Besides all the reasons I put in the letter yesterday, the CBOE combined p/c ratio dropped to 0.48 today and Vix dropped back under 21. Technically this is death on the installment plan for stocks. Stocks suck! Go gold!

Good luck with your investment and casting. We'll keep our fingers crossed. I guess its too late now to mention the fact that Rio Grande and SWEST sell a room temperature silicon rubber which is safe to use on wax masters? IMHO

Restoring a dollar based on gold, thus restricting unlimited credit expansion in the private and public sector in the United States, and returning to our international gold standard system with more or less fixed exchange rates and a limit to the expansion of international

credit could be the greatest contribution to peace the world could have. But are the American people, and the free world, wise enough to take that step, and willing to pay the price?

plagiarized in totality from

http://www.fame.org/research/library/rsb-001.htm

------------------------------------------------------------------

http://www.spies.com/jxski/fed/federal_res_paper9405_all.html

On April 20, 1933, operating under the authority of that same Trading with the Enemy Act, President Roosevelt issued an executive order making it a federal felony to export gold or gold certificates, or to earmark estic gold for foreign account, without a license from the Treasury. Foreshadowing the August 1971 events at Camp David that affected official U.S. gold transactions, this April 1933 proclamation marked the end of the U.S. gold standard for private international transactions.

-----------------------------------------------------------------

http://www.in-search-of.com/frames/new_world_order/one_world_2.html

By April 20, 1933, the United States was off the gold standard to follow a financial program of inflation.

----------------------------------------------------------------

http://www.fame.org/research/library/rsb-001.htm

In the spring of 1931, little Austria's over-extended Kredit-Anstalt collapsed, taking that nation off the gold exchange standard. Panic spread to nearby Germany, whose banks too had borrowed short and loaned long. In July of 1931, Germany left the gold standard. Next was England, which ended her ties with gold on September 19, 1931; and finally, on April 20, 1933, the United States put a permanent embargo on gold followed by a drop in the dollar's exchange rate. The United States, too, had left the gold standard.

-----------------------------------------------------------------

mozel, SDRer: Also note the section for 'Central Bank Watchers'

http://www.economeister.com/today.htm

mozel is well spoken about the inevitable demise of the US dollar and the rise of the price of gold. However, the entire world uses the US dollar as its reserve currency, and a transition to another ( stronger ) currency requires that there be a substitute. Right now there is none, and until then there may be little to threaten the dollar's supremacy. But -- the tide will eventually shift.

Might be a boatload of code -- and that one little y2k non-compliant byte from that Polish programmer consultant might get missed. What if someone installed an embedded y2k 'virus' in all of the Windows 98 software? Frightening thought -- one problem with most of the public users having the same vendor. No power failures or electromagnetic pulse needed. Anyone who doesn't like Bill Gates?

I am eagerly awaiting the 'smoke and mirrors' approach with the Euro launch, and the resurrection of gold as a reserve currency. I look forward to an evolutionary change, not a catastrophic one, which would be bad for everyone, gold bugs included.

Harry Dent: I have several of Harry Dent's books, and his words should be taken seriously about two major points. First, one reason the US markets/economy is strong is because we have alot of baby boomers, and Japnan does not. For example, if you just plot the baby boomer spending curve ( maximum at agre 45, then down ) , you do get DOW 20,000 plus by 2010 or so. At this point the baby boomers start to retire in a big way, and Harry predicts a depression at this time. So -- Harry Dent is a futurist, but he does not predict perpetual nirvana either ( unlike other perpetural market Bulls we know ) . Secondly, Harry Dent uses the 'S Curve' extensively to describe the economic growth of new technologies -- such as the internet trading, for example. Those of you who have not read about 'S Curves' should do so, because the logic of an innovation phase, growth phase and plateau phase seems irrefutable. Allows you to do very well in the markets, a la Warren Buffett, or that fellow who founded the Fidelity Magellan fund. These 'value investors' know how to buy into the bottom of the S phase of a new technology/process and maket a fortune. Notice how the internet stocks just took off?

What is my take on all of this? Harry Dent oversimplifies by focusing on population growth/employee productivity as the only force behind the markets and economy. For example, he describes inflation as only being due to 'new untrained workers coming on line'. Nothing about monetary inflation. So -- what he says is very important, is not part of mainstream economics -- but is not the whole answer.

My conclusion is that the baby boomers are a strong supporting factor in our economy, and I do not wish to be actively invested in the markets when they retire -- big time trouble then! However, this is only part of the economic scenario, and other negative factors might override, and pull the US markets down long before 2010. Interesting reading, nonetheless, and a pretty good argument for a fairly strong US market until y2k.

Even with a continued US bull market, Gold will do well. Around 2010, gold will probably be in the stratosphere.

My post to Another relates to the very real possibility that some gold mines will either cease to exist or become the property of their creditors. This is certainly not a novel or radical idea, not in this past year. My point was/is that the public ( personal, not governmental ) ownership possibilities ( for mining stocks ) MAY be decreased by this very real phenomenon of massive forward selling and its unexpected outcome in some cases.

Farfel, gold is a refuge and a comfort for many of us, but not a tantrum pacifier as it appears to be for you.

Thanks for the smile this Monday morning!

away...to cuddle my mountie

Éßproudgoldbug ( ohmy ) :- )

ever, and yet they fail to win investor support.

There are longer term repercussions that come about as a result of this under investment. The low price of Gold itself will not encourage any new development. That will only ( as far a these Canadian Jr.s can affect ) hinder the securing and development of new Gold sources. That coupled with the Bre-X fear factor will in all likelihood result in a drop in the gold development activity, although I have not seen any numbers for 1997.

But at the same time, there are Jr.s that are securing and developing fine properties, and they probably have as much leverage and opportunity as any part of the gold sector given that they are at rock bottom.