For todays PM review.
I know what to say about silver
Likewise also otherwise even indeedy PGMs
But how shall I deal with gold?
Im feeling very ambivalent

OK

Blooper: I seem to recall a post of yours last week in which you predicted a big DOW hit on the 23rd - way to go, congratulations.

The Y2K effects on Health and Medicine was featured last night ( tonight? ) on CNBC ( or is it MSNBC or are they the same ) .
ANYWAY - failures of diagnostic instruments. They specifically said that medicine could be set back to the days of the 1950's!!!!!

They mentioned the progress of federal agencies. The FAA got an "F".
Defense got a "D".

They also mentioned the rising media coverage of Y2K. Even the Y2K news is news! Combined with USA Today front page treatment - the public will soon be hit with it enough times that they will have to be deaf, dumb and blind not to notice ( okay - so most of them are all three ) .

Might Silver be reacting to the first tricklings of flight into PMs?
Gold may not be far behind. Though after these many months of inactivity it may take one heckuva wallop to wake Gold up. We should be happy that at least Silver is starting to move. But then it may peter out in a few days - but likely not for long given the media fanning Y2K fears.

7/23/98 -- 10:17 PM
Arnett says he believes Pentagon report on nerve gas

``Unless some new information is unearthed, I'm willing to accept that there was no nerve gas used in Vietnam,'' Arnett said. The Pentagon report ``is good enough for me,'' he said.
http://www.tampabayonline.net/news/news101a.htm

HighRise

That in and of itself says much, very much about Gold!
Short of putting an A-bomb under Manhattan,
I don't know what it would take to kick Gold loose.
Today's news from Klinton's Kamp,
of Japanese selling more Treasuries,
and the stock market getting clobbered
and after all this and other slings and arrows -
GOLD GOES DOWN!!!!!
Okay, not by much but it sure didn't go up either!

I agree that it may eventually maybe even double.
But I may not buy much until it drops below US$250.
Which is no consolation to those who bought at US$350.
I shall wait on Gold. Meanwhile I'll buy more Silver.

Meandering patiently.

Golden Cheezehead
Will have some pics soon.


Back to the brush.

Opened down about 100 points, but is now up
over 160 points ( or 1% ) !!
Go Yen ! Go Gold

Asia is the market to be in now.......

HEllo and good evening to you both:
Concerning gold:
MY simple mans advice is to have some, buying to own for emergencies can be done anytime now, IMHO. Gold is in a valley and yet may have deeper to go, but in the long term view it seems prudent to buy in the valley. I understand your ambivilence, this market is one of the wierdest in all times. Never have so many tried to control so many factors at such speed as is now possible. In Chaos Theory this is a typical example of order right before it falls to disorder, ie driving inputs to the market and economy back and forth in an attempt to maintain equilibrium, leads to driving these inputs to hard at some point and destabilising the oscilations of the aformentioned equilibrium.
Why am I online and not running my speed boat around a nice lake?
I got into a little trouble, apparenlty w/o my knowing it that while trying to dodge the many branches in the lake one of them went under the boat and tore the keel fin and mahoganey runner off the bottom, leaving 8 screw holes leaking water. : (
Dual bildge pumps barely kept it from sinking! had to do an emergency beaching to keep from sinking! : ( Home safe and dry docked now OK, big repair bill luming in the future.....
So, home for a night and on to the family reunion on the marrow. : )
Sorry Bart..
Go Gold or at least go economy until I get my next product launched.
Nicodemus

Somebody just sold it down 4 cents.....

I am pleased you are no worse for the wear. :- )
Were you solo or did you share the fun with others?
Solo would make it even more of a challenge!
Nobody to bail you out. ;- )

P.S. I'm switching to selling American Silver Eagles.
For how much I don't know - depends on spot next week.

Silverbarron
I am afraid you might not be pulling my leg in your post that describes export/import controls on Beanie Babies. Some time ago I asked about BBs and was kindly pointed to some links where I discovered more than I needed to know. BUT export/import controls? Mate! Whatever happened to Free Trade? Is Free Trade just another con? How can a Free Trading Nation not allow a free trade in BBs?

I shall start a movement... A FREE THE BEANIE BABY CAMPAIGN...

Let's see we can have John Adams BB, A Thomas Jefferson BB, yes, we should have a Louis T. McFadden BB, a Ludwig Mises BB, and a William Jennings Bryan BB too.


Beanie Babies MUST BE FREE!

aurator BB

FRIDAY JULY 24 1998
Americas 

IMF funds at 'lowest level in 15 years'

By Nancy Dunne

The International Monetary Fund says available lending resources are at their lowest levels in 15 years and are expected to sink further as the Russian bail-out continues, according to a congressional report released yesterday.

The report, issued by the General Accounting Office, the investigative arm of Congress, was requested by Senator James Saxton, chairman of the congressional joint economic committee and a critic of the IMF.

Senator Saxton contends the IMF has sufficient resources without the $18bn ( 11bn ) authorisation for new funds requested by the Clinton administration.

The report says that, as of July 20, the IMF had about $130bn in currency holdings in its general resources account. Of this about $70bn has already been used and $17bn committed for other loans. IMF officials say only about $10bn-$15bn of the remainder can be used in an emergency because it must set aside funds in case member countries need them.

The report reveals the IMF believes its resources to be so low that only $2.9bn of the $11.4bn intended for Russia, in a loan approved last Monday, will be provided from its general resources account. The remainder will come from an account called General Arrangements To Borrow ( GAB ) , set up by 11 industrialised countries.

The GAB is rarely used - it has been activated only nine times in 36 years, with the US the last country to draw on it in 1978 to help stabilise the dollar - and it can only be deployed for an "exceptional situation" when the stability of the international monetary system is at risk.

The IMF has made other arrangements to borrow in the past through supplementary financing facilities. In 1985 these borrowings equalled almost 42 per cent of outstanding IMF credit. However, the report states, Fund officials later grew concerned about "the consequences of having the IMF, which seeks to stabilise international capital markets, rely on those markets for funding.

The outcome of Bill Clinton's request for new funding will not be known until September. Republicans are split, with Newt Gingrich, House speaker, pushing for IMF "reform" and most of the authorisation.

http://www.aci.net/kalliste/

HGMCY holding while the other So Africans are going down, right Mr. Disney.?

APH, still long the S&P, can't remeber where you had your stop. I suppose you are out of silver with a small loss. Any plans to buy. Maybe we had the washout May 29th at $4.91 about 5am Eastern Time, I remeber that day vividly. The market has held its low's since then and has begun a little uptrend with computer trend following systems kicking in.

It's not going to be straight up from here but the tide is turning. The precious metal markets should be played and invested in from the long side.

I did call for the market to break on the 23rd of July. Thank you. Even a blind pig finds an acorn sometimes. Yes?

Aurator. In the unlikely event you missed this, the following offers an explanation for the Jastram findings: ( add http: as I cannot get the editor to accept the link ) fly.hiwaay.net/~becraft/FSanders.htm

Just flying by.

Skylark
Thank you. I'd not seen this. Time to subscribe to the Gold Newsletter Again?

I'll try the link for our fellow kitcoites

http://fly.hiwaay.net/~becraft/FSanders.htm

There I was in the bank.
Asked the lady for a statement of my balance.
The computer was slow.
Very slow.
"Guess you're practicing for January, 2000", says I.
"What's that?", says she.
"You know, the millenium bug", says I.
"Oh, we get bugs all the time",says she.

I'm gonna give up trying to warn my fellow human beans!!!

The precious metals should be invested in from the long side, IMHO, but caustiously. A look at the CRB index and the XAU is very chilling. The XAU doesn't need to go much further down to trigger another leg down. The general commodity indexes are in free fall. The metals have been really fighting a strong current of deflation and dolar strenght. The Yen looks vulnerable to a collapse to new lows.

When, does anybody know can the Japaese pension funds and other to be released sources of funds become free to invest in the US Markets.? Is it December of Janauary??

No Nick Ya can't warn 'em. They have no ears to hear. I had cause to talk to my banking friend, on his call a couple of days ago, I mentioned I've asked my Bank, The National Bank ( Subsidiary of Lloyds ) whether they are Y2K OK. Well, if you remember, last time he was cocky his bank was OK. I waited for his response. Nick. I got "The Look" over the phone. He's found something, and he can't say anything. Silences speak volumes. Bad gnus on the rise.

Maybe we should all go bush.

Skylark
forgive my imperfect memory. It was "Silver Bonanza: How to Profit from the Coming Bull Market in Silver ( with Jim Blanchard - of Gold Newsletter fame ) That i recall reading a few years ago. Great Info, still have it somewhere, Will dig it out. Always like his analysis of Ag consumption patterns. Esp on the "non-threat" of digital cameras to Ag halide demand. His book was the first time I read of the old 16th Cent sailors trick of dropping silver in barrels of water to keep it fresh.

Anyone tell us about The Gold Newsletter? How is Jim Blanchard? What's he say about the S African?


The Bacteriocide properties of silver are being tested at the moment, in my, ahhemmm, laboratories. One morgan/peace $ per 20 litres.
If anyone has better info please advise how to keep water fresh....

aurator_Come_See_Whats_on_THE_SLAB@_The_LAB

Settled on a Honda 6.5KVA ( 5200 Watt ) beauty.Have an electrician coming Monday to hook it up to the house with a changeover switch.Not a huge generator, but enough to run most lights, appliances and hot water. Heating elements only with other things off.

I am used to the routine. I spent 9 years in Papua New Guinea. Power was a luxury. It was on now and then, but not to be relied on. You get used to juggling circuit breakers so as to not overload a generator.

I am now almost ready. My family will not be waiting in lines at soup kitchens, banks, grocery stores etc.--should they eventuate.Everything I have bought I will use in the normal course of events. Even the generator. I own a hire business. After '00, if not needed I will hire it out. Gonna pay for itself. I expect to need it though.

Here is a blast from the past. I am speaking to Bully Beef again after his retraction of comments about Aussies, due to our involvement in a massive relief effort in PNG's tsunami hit area ( I sent off a big cheque yesterday. Hope some of you in your comfy lounge chairs did the same ) .Will just have to differ over who has the best beer though. As Crocodile Dundee said after being challenged to a beer drinking contest by a Yank, "This should be interesting."

Date: Sat Jun 13 1998 21:07
Bully Beef ( Couldn't help but get in on the discussion of generators. ) ID#259282:
Copyright  1998 Bully Beef/Kitco Inc. All rights reserved
My power was off for 17 days in Jan. due to the ice storm.
Have a lock and chain for it.
Have a propane fireplace or space heater or Gravity fed oil space heater.
I have a wood stove and an endless supply of wood.
Locate an easy source of water. Have those 5 gallon plastic pails with lids.
Have a large galvanized pot to keep water warming all the time. It takes the longest time just to get it tepid.
Fill the bathtub if you suspect power shortage.
Insurance covered having a generator at the cost of 35 dollars a day if it was over 4000 watts.
4500 to 5000 watts is prime.Less will burn out your water pump.
You need to run your furnace fan to circulate the air in your house evenly so pipes won't freeze.
Wire straight into your panel. Turn off main breaker so you don't back feed to power lines. Just use breakers to
direct power to things you want to use.
Have an electrician you can get a hold of in a hurry before his price goes up.
Be prepared to help your neighbours. Give freely . do all you can. learn what to say no about. Your neighbours
will never forget the kindnesses you offered. ( sump pumping is big )
I had a cheap coleman 4500watt. It worked great but Hondas are far superior. Hondas are to die for.
Running the generator for the freezer is a waste in my opinion.
The silences are great when it is off.
We didn't need it as much as we thought.
Set up your house so you aren't as reliant on power. Screw the grid.
Change the oil often. More than they recommend.
People will steal your generator in a crisis. Many people lost them around here and normally there are few thefts.
Remember who ripped you off for candles in the emergency and never shop there again.Batteries and lots of
them. Lamps and lamp oil not kerosene. It stinks up modern houses.
Sorry for length

Nick
talk about bugs,, sheeeit...
Have you been reading about the "undocumented featurettes" that have been springing up Willie Nillie ( Willie Nelson? ) in the New Hong Kong Airport. THings are so bad that they're trying to slap news-gagging orders on the press.

Now, you gotta remember, millions and millions was spent on this most modern of ( unsinkable ) airports.


Aw shite, sometimes my R brain is a real bugger. That's the side what gives me my intuition, and natural love of sheeps. Sure does seem to be a lot of reasons to go fishing for the rest of our lives, eh?

I am suprised by the disparity in knowledge of the Y2K possibilities. I spoke to the 'Electrical Inspector' for our area. Told him what I was doing with the generator. He was most impressed. "Good idea, mate", says he. Had a good yarn with him about alternative electrical supply. A lot of rural people around here have generators. Bush fires, mate. Cut the power lines. He also said that a lot of people use banks of batteries and a generator to recharge them.

OTOH-- MOST people haven't got a clue. They exist day to day, paycheck to paycheck, drink to drink, ATM to ATM. IF there is a shutdown, these people are gonna be in deep doo doo ( to quote an 'Merkan Prezzie ) . They will run out of food, drink and fuel in a coupla days. Scary to think about what they will do next.

Hiyooooooooooo Siiiiiiiiiiiiiiiilver, and awaaaaaaaaaay!!!

Hurry up, Tonto!!!

Ugh!!!

Nick

Yeah, BJ and I gave as we could. I hope the golden heart of kitco extends/reaches/embraces the many thousands of Papua New Guineans who have lost their families, homes and livelihoods in 3 destructive Tsunamis that wreaked havoc on good folk and bad.

They need help. NOW.

Just saw a docu on fishin in noo zeeland. You supply the beer 'n bait and I'm on the way. Don't tell them northerners how beeootiful it is down here. They can go to Knott's Berry Farm and pay 5 bucks for a hot dog.

Bart, I would say 'go gold', but don't want to give it the kiss of death. Am resisting selling my penny mongrels...err...dreadfuls, cause I know they'll skyrocket the moment I do.

You're right bro, It's real shitarse downunder. I forgot what snow is. Get these awful blue skies all year round and just cant see any pollution to save myself. The beaches are lonely. THe motorways are empty. It's real bad. The *Worst* place ( plaice, to keep us icthyologically correct ) on the globe. It's so bad, noone lives here.

Was that winter?
"
Never got my "jersey" out of the drawer. ( baaaah ) jersey=crapauds

Nick
haul em in, heave em in. haul em in,

As to fishing, one day I'll finish my homepage and will show you my "Fisherman's Friend"

Yair, mate. Gotta keep Antipodoea a well-guarded secret. Don't want a touri invasion. Kitco mates will be accepted, harboured and succored in time of need. They gotta bring their own yeller stuff, however. Hope they like lamb.

Now the java and toast brigade shall be arriving soon. Almost time for the beer/wine set to retire. Shame about this time difference. Do these guys/gals know how bad their posts are late at night?? Probably 'bout as bad as ours of the last hour/two. I feel real smart at night and upon re-reading in the morning, think "omigod, I didn't write THAT!!" Specially on Friday night/us--morn/them--My shares can't go down any more tomorrow!! Harr, harr!! They gotta watch em go down again!!! Actooooly, oneamine been goin up big-time. Must be a mistake!!

The first edition of "The Compleat Angler" appeared in 1653 and the fifth and final edition to be updated and elaborated by Walton himself was done in 1676,when he was 83 years old, and purportedly still fishing.


------
In 1796, Charles Lamb wrote to Samuel Coleridge, "It breathes the very spirit of innocence, purity, and simplicity of heart. ... It would sweeten a man's temper at any time to read it."

-----
And speaking of old sages. I hope noone forgot to read JK Galbraith's interview posted earlier this spin. There is much wisdom and humour in this nonogenerian's words.

____

I have regailed you with the speaches of an octagenarian London Jeweller, yes?

----

Hold Gold.


Get Real. Get Gold.


an i bot more silver today.. Unused to physical delivery of so much silve is JM.

It became legal for Americans to hold gold on January 1, 1975. It has traded on 5936 days in the 23.5 years since. The average closing price through yesterday is $349.02

Nick@C
Yup. De Northern hemispherics are welcome, just bring your weight of provisions or 1/50 the weight in 9999 Au.


BJ just said I am starting to sound like a merkan. This may be the end.


nytolTeddo

http://dailynews.yahoo.com/headlines/ap/international/story.html?s=v/ap/980724/international/stories/japan_politics_7.html

Donald

Where else but kitco?


BTW


Where's Kiwi and LGB.


Mozel

You're bigger than this. If you cannot speak to us. You can speak to noone. There is no censorship, just no spitting at the bar.



Spitoonaur@tor___Ptoowieee///////~~~~~~______GOTCHA

...are on a honeymoon cruise. Would love to hear the conversation. Mozel has cut off his nose to spite his face.

Not in Europe, at least

http://dailynews.yahoo.com/headlines/ap/international/story.html?s=v/ap/980723/international/stories/russia_restless_regions_1.html

http://biz.yahoo.com/finance/980724/asean_curr_1.html

Lihir Gold Ltd. - Port Moresby, Papua New Guinea
6 Months June 30:
.............................1998
Pretax profit............US$21.7 mln
After-tax profit.............4.1 mln
Dividend ....
Sales.......................90.9 mln
Earnings a share.............0.45 cents

SYDNEY -- Lihir Gold Ltd. ( LIHRY ) , a Papua New Guinea gold mining concern listed on the Australian Stock Exchange, said Friday it achieved a net profit of US$4.1 million in the fiscal first half ended June 30.

The result was struck on sales of US$90.0 million. Lihir, which has the Lihir mine on an island of the same name in Papua New Guinea, poured its first gold from the project in May 1997. It didn't record any sales in the first half of fiscal 1997.

The company also released production details for the second quarter ended June 30, showing it poured 122,564 ounces of gold in the period, down from 139,525 ounces in the first quarter.

The total cash cost of production in the second quarter was US$204 per ounce and US$191 per ounce in the first half. The total production cost, which includes depreciation costs, was US$279 per ounce in the second
quarter and US$264 per ounce in the first half.

"The increase in unit costs during the second quarter reflects the lower gold production level and higher mine output," the company said.

Gold production was "adversely affected by a number of unrelated equipment constraints, principally within the oxidation circuit and partially reflecting the rapid rate of plant commissioning in 1997," Lihir said in a statement.

Overall production for the half year was 11% below forecast, the company said. Lihir said it got an average price of US$346.00 per ounce for the 262,228 ounces of gold it sold in the first half, compared to an average gold spot market price of less than US$300 per ounce.

The Russian crisis continued to ease today as the central bank lowered its interest rates to 60% from 80%. The IMF loan payment boosted Russia's reserves to over $18 billion, and that is helping stabilize the Ruble. The Russian situation is now off traders radar screen, and will disappear into obscurity until another crisis emerged possibly with the next IMF loan payment

http://biz.yahoo.com/finance/980724/instant_vi_1.html

Silver Futures Prices Rally On Low Supply, Fund Buying

An INTERACTIVE JOURNAL News Roundup

Silver futures rallied Thursday at the Comex division of the New York Mercantile Exchange, continuing a strong run this week that observers tie to limited supplies and buying by commodity funds.

That combination of influences has some drawing parallels with the rise in silver earlier this year to a nine-and-a-half-year high, in association with massive buying on the part of investor Warren Buffett's Berkshire Hathaway Inc. The speculation in the market was that Buffett is buying again, although there was no evidence for that and a Berkshire
Hathaway spokeswoman declined comment.

The September Comex silver contract jumped 14.20 cents to $5.802 a troy ounce."Silver saw continued fund buying that went pretty much right through the day," said Scott Mehlman, chief bullion dealer at Credit Lyonnais Rouse in New York. "There's some tightness in the market and
some rumors going around."

Talk of fresh buying by Mr. Buffett are being fueled by the fact that silver has been rallying while other precious metals have been falling, a pattern which also occurred in the rally earlier this year. Another similarity is that rates charged by banks loaning out silver have been on the rise as inventories in Comex warehouses have declined. The one-month lease rate has risen to 3.50%, from about 1.50% two to three weeks ago. Silver inventories in Comex warehouses dropped by 678,435 ounces
Wednesday to 80.9 million ounces.

In addition, traders have noted that some of the same trade houses that bought during the previous rally are active again now. "Some of the people who were following silver right around after the Buffett news, are back in London operating in silver, but we don't know to what extent," said George Gero, senior vice president of investments at Prudential Securities in New York. However, William O'Neill, senior futures strategist for Merrill Lynch in New York pointed out that those trade houses are almost always active.

"One thing you have to realize is that these major trade houses have been in the market for 25 years or longer," Mr. O'Neill said. "Buffett is the flavor of the year, if you will, as far as silver is concerned and any
time there are large moves in silver, his name is going to come up."

Meanwhile, gold was pressured by market participants who were buying silver and selling gold as well as gold's nearing July 31 delivery date. August gold fell 90 cents to $293.70 an ounce.

Nicko
Au contraire, mon frre, Sometimes I read my posts weeks or months later and wonder who wrote the flaming things. Usually its because I look up something like "schumpeter" and find 5 occurences in 50,000 pages, and see that i posted something nearby. I believe now, contrarianwise, that the older I get, the dumber I be. How could a younger me be smarter than I, now?

Anyone like to assist this frail@mindedaurator with Schumpeter?


Fred@Vienna

Ineffable. I hope your dictionary is good enough. Cos ineffable is how much I esteem your posts.

http://biz.yahoo.com/apf/980723/commoditie_1.html

Nikkei and yen acting very well considering that market-favored candidate did not win. Nikkei looks to move nuch higher in weeks ahead even as the Dow moves much lower. Bullish for POG.

About an hour after the Hong Kong market closed it appears the shorts made a valiant effort to knock silver down. Dropped spot by a nickel from 5.86 to 5.81. That was it.

Now we go skipping merrily into the New York morning....

Go Reify!

Globex stock market quotes are all up. The overnight crowd is betting that yesterdays nearly 200 point decline on the DOW was just one of those little glitchy things and that there will be a rebound today.

It's kind of like groundhog day in the market today. If the great dipster sees his shadow.....

Gold: unchanged

Silver:

39,801,689 Registered ( -607,346 )
41,091,014 Elligible ( -71,089 )
80,892,703 Total ( -678,435 )

Last chance for some good action before the long weekend. Everyone have their bets placed?

Spot silver back up to 5.83 as the shorts go looking for some more cash. They would be well advised to give it all up before things get really serious.

What was that other metal? Oh yes, gold. It looks like gold is going to have a very good day today too. Yep. I bet we punch right on thru 295, what do you think it will be by the end of the day?

I have yet, despite knowing several Japanese for more than a decade, begun to gain a scintilla of wisdom of Japanese politics. It is essentially incomprehesible. Factionalism and loyalty beyond W Comprehension.

It is NOTHING like European demarkations of Socialism v Captilalism and so far removed from the straight-jacketted/blinkered/naive view of the political spectrum that our merkan couzins would like to impose upon the rest of the world as to be like the exposure of labial tattoing at a bar mitzvah, noone really saw it, but it was imprinted forever.



"You ain't seen nothing. Yet"


really...nytol

All:

Two bits of market action which are relavent to the times.

First, the Korean Won was up another 2 percent or so last night. The real center of the SE Asian economic vortex continues to improve. Perhaps another loosening of credit will ensue. The positive feedback cycle is begining to gather steam.

Second, and confirmative of point one, the price of copper is up 2 cents and is now pushing the 80 cent level. If the forces of deflation were going to win this one, copper would not be up 13% from the lows. Do you know that some people view silver as an industrial metal?

Off to the apple a grande to see how the bones roll.

Aurator

Struth....the Beanie Babies do have export/import controls on some items - I was not kidding. Now for the BAD news - the Silverbaroness did sell Beanies for $4K yesterday, but only 1/3 of her hoard. AAAARRRRGH! But in any case, she says the rest are riding now at negative cost, and will dump when she sees prices start to fall.

Tantalus Rex

I'm holdin' 60% cash only because it is in a tax-deferred 401K account, and like so many others I do not have a precious metals option for this account.

I don't know much about the Ballard fuel cell - although if it requires hydrogen, I would be very doubtful of its practicality. Hydrogen is difficult to store, dangerous to handle, and requires electrical energy to produce from water, an expensive proposition. However, if the fuel cell uses hydrocarbon fuels like propane, butane, or natural gas, it may have possibilities.

Anyone care to share their picks from these? A fellow Kitcoite solicited my advice and I haven't been watching them. It seems to me that the Lexington Funds, Mida Fund, Scudder Gold fund, and Invesco Gold Fund all are good choices.

http://www.findafund.com/cgi-bin/listcat3.pl?category_id=GPM

From another thread:
FEATURE - Lebanon still finds comfort in gold reserves
07:32 p.m Jul 23, 1998 Eastern
By Jack Redden
BEIRUT, July 24 ( Reuters ) - While even gold producers like Australia
have been dumping the precious metal from national reserves, Lebanon
continues to sit on a treasure trove worth nearly $3 billion.

''There have been talks over the last decade but they did not do
anything because they wanted to provide the additional security for
investors,'' said Marwan Barakat, head of research for Banque Audi
( AUDI.BY ) .

''They would have earned a significant return if they had used the
gold,'' he said. ''But there is a trade off between optimising the
return on the gold reserves and securing a financial standing in hard
currencies that provides security for investors.''

For Lebanese, the 9,222,000 ounces of gold held for the country in U.S.
vaults and the central bank are not just an abstract item in reports on
the national reserves. The gold is the symbol of Lebanon's financial
survival through a 15-year civil war that destroyed much else in the
country.

Despite a battering that ended Lebanon's role as financial heart of the
Middle East and impoverished much of the population, the tiny country
squeezed between the Mediterranean and the Syrian desert never defaulted
on a foreign loan.

The policy of never selling gold -- which the Lebanese central bank had
maintained since its formation in 1947 -- was made into a formal law by
parliament in the mid 1980s when the country was descending into the
darkest days of the civil war.

''Under that law the bank cannot sell, lend or undertake any financial
operations on our gold. So it is an asset that we hold on our books but
which we cannot sell, lend or otherwise transact in any fashion,'' said
a senior banker.

''I think it was much more important back then than it is today as a
confidence factor. Peoples views have evolved, investors are becoming
much more mature.''

PSYCHOLOGICAL FACTOR

Some bankers would like at least an easing of the restrictions, allowing
such things as the loaning of gold that other central banks undertake to
at least cover the costs of storing the unproductive metal.

''It's not an earning asset it is true. That is a matter of law so we
can't have an independent policy,'' the banker said. ''It just sits
there and until there is a change in the law we cannot do anything.''

Even a gold producer like Australia has moved away from the precious
metal, which costs money to hold in a vault and does not produce even
interest income. Canada, with a population nine times that of Lebanon,
holds only $144 million in gold in its foreign reserves.

Barakat noted that the value of the gold, slipping anyway because of
weak prices, was declining steadily as a percentage of total state
obligations, which have been inflated by years of high budget deficits.

But no one is expecting a change in policy, which could come only by
Lebanon's fractious parliament altering the 1980s law, an unlikely event
when less controversial measures can take years of debate.

While other countries may be seeking more productive forms of reserves
than gold bars in a vault, Lebanon is still trying to ensure economic
stability eight years after the fighting stopped.

Economists believe the gold still provides at least a psychological
guarantee behind government promises. By law, Lebanese pound notes in
circulation must be backed by gold, which they are about seven times
over. And foreign investors need to be reassured as well.

Lebanon has raised $1 billion on international capital markets this year
-- following earlier net borrowing of $1.05 billion since the war -- and
hopes to raise at least another $500 million in the second half of 1998.

Central Bank sources say there has been no discussion of lifting the
restrictions on state gold transactions and they do not expect any in
the foreseeable future.

''It means that you have an asset there worth close to $3 billion which
has always been a source of confidence,'' said an official. ''And I
think that remains true.''

Copyright 1998 Reuters Limited

OH Auratorious One: I am advised that the Japanese Pollies are a side show and are paraded on the world stage to keep the sheeple happy. Japan INC runs the show and makes all decisions. Japanese Pollies take their orders from Japan Inc. Yes Sir that's what I am told. No reason to not believe it. Nope not one. Why do you want to understand them? Let it go. Watch the charts. Buy cheap & sell high and keep accumulating the Yeller Stuff. Cheers

They had better not tell the IMF. IMF will loan them $2Billion us, devalue the Lebanese currency ( if they have one ) and then collect the Gold, including the stuff in their teeth.

And back at the ranch - Dow down 300? Silver running up? Gold finally
follows a bit overnite? WJC lapdog resigns?

Check in here and the horror of labial tatooing at bar mitzvah's
rears its ugly head. Audatious, auracious!

I mustn't leave town again anytime soon and miss all this fun.

T#1 - Looked over about 30 excellent tequillas while in Sinaloa,
the Patron Anejo remains ellusive. But found a great one, called
"Reposada Las Trancas". Best I ever tasted, and tasted ... head hurts.

Gotta go now, to my first ever high school reunion, after 28 years.
Doubt I'll find any Goldbugs. Can't wait to check in later to see
if the bloodbath continues thru weekend? nextweek?

IS THIS THE BEGINNING? OF THE END? what fun! GO GOLD!

Bonds down, dollar down, yen up, gold up. Let the day begin.

C.Bank Says Palladium Not Part of IMF Deal

MOSCOW -- ( Reuters ) Russia's deal with the International Monetary Fund ( IMF ) does not involve using Russia's palladium stocks as collateral for loans, a senior central bank official said on Thursday.

"No, the ( IMF-Russia ) documents do not contain any reference to such a thing," the official said.

Rumors on the precious metals market had it that part of the Russia-IMF package, announced last week, called for using palladium stocks as loan collateral. IMF officials in Moscow were not immediately available for comment.

The IMF has approved $11.2 billion in new funding for this year to help Russia deal with an acute financial crisis.

The IMF credits are part of a major international rescue deal totaling $22.6 billion for this year and next year. The package also involves World Bank and Japanese credits.

Central bank Chairman Sergei Dubinin said recently that Russia had worked out a procedure for using its reserves of precious metals, particularly palladium, as collateral for raising money quickly in an emergency. (  ( c ) 1998 Reuters )

SI U8 September Silver 5855 +53
HG U8 September High Grade Copper 8075 +295
PL V8 October Platinum 3832 -3
PA U8 September Palladium 31500 +585

http://quote.yahoo.com/q?s=OKP&d=2y

Got copper?

There are an awful lot of lines to read between this morning.

As D.A. intimates, It looks like Korea is turning the corner. Remember Korea? They were one of the first and biggest into the maelstrom.

The dollar seems to be declining against all major currencies.

Japan has talen a deep breath and rolled up it's shirtsleeves.

Oh, what the heck, look here:

http://cnnfn.com/markets/bridge_news/80.1.html

http://cnnfn.com/markets/bridge_news/2270.1.html

Sounds like some kind of a novel.

What is novel is that August gold is preparing to break 295.

OK you guys, the fund managers are coming to visit today. I can not stress enough how important it is that we impress these guys. You need to all be on your best behavior. We want to get these guys really pumped on PM's. Today is the day.

I am trying to reply to your email and I keep geting bounced. Check , just in case and let me know. It was really GOOD

It seems over the last year, every time markets have been wobbly, some announcement has taken place about Gold sales. None this week though, hmmmmmmmmmmmm

Since January 1, 1975, the average daily closing price of silver is $6.796. ( See my post of 6:15AM )

Japanese CB and European CB's no longer printin' money! Fed printin' money like mad! Looks for Yen to stabilize or even strengthen against the US dollar! IF BOTH the Fed and the Japanese CB stop printin' money, world equity markets will continue to tank as money is pulled out of equities to finance current consumption. Jimmy bearish on Russia, China, SE Asia, South Africa ( no reserves left ) and Bonds! Says IMF is BROKE! All they have left is GOLD which they probably have to keep to maintain credibility--BUT, if they were to sell, gold would plunge to $100/oz! Not too smart if you're broke and tryin' to get the highest price possible for your only remaining resource!

New Zealander writes ..

Y2K final clincher for action about my money came yesterday when I went to do some personal banking in a quiet country town where we had a little high water in NZ last week. ( About six inches over the main road for anyone interested. ) Outside the bank was a security person on patrol with uniform and cell phone. ( Guns are not carried by police or security people except when there is a incident involving a very disturbed person and they are very rare. ) Inside was a completely redesigned bank interior with new fittings more like a preparation for a seige. I know the bank manager personally so asked what was going on. He was very uncomfortably with his new decor and answered without his reassuring smile, 'its a changed banking world'. His tellers also looked uncomfortable. I asked him was he expecting a run on the bank? No answer. I asked him what was the largest sum of money he would give me in cash $5k. Needless to say I shifted my savings yesterday afternoon into a more liquid form. An on demand account from which I will remove my funds over the next week or so..I know most of you live in a different world but..

~~~~~~~~~~~

Lot of volume on silver this morning. Which way's she gonna break?

DO NOT LET YOURSELF GET SUCKED INTO THE VORTEX OF THE WEEKEND SELLING CLIMAX!

at 10:00 AM! Stay tuned!

Has everyone noticed that the base metals in London are screaming upwards

AG will say--in Fedspeak, of course!

DA

Perhaps the reason the London metals markets are doing so well is the pick up in Korea. If there is only a pick up in Korea and the metal markets are responding by rising, just think what will happen if Japan gets its house in order.

Little hard to say yet. It looks like the DOW snap back rally the overnight dipsters were looking for is going to be a bust. We had about a 50 point gap up, nad now it's declining. If this pans out and the DOW resumes either it's decline or just lackluster performance, silver should resume it's climb. The dipster's just want to be sure there's no other game in town.

And there isn't. Bonds are down, stocks are going nowhere, what's a poor gun slinger gonna do?

Heard on a Dallas radio station this morning on way into work that the city of Fort Worth is asking the public to conserve water as they repair a four foot main that has ruptured. Apparently the recent heat has put lots of stress on the system and they now have two 36" mains doing the work of three. We also have water rationing in about half a dozen other North Texas cities.

BOTH BONDS AND STOCKS ARE IN DEEP DOO-DOO! Rising rates in this scenario should help the PM's!

Back over the $295 mark as Yen/dollar strengthens!

http://biz.yahoo.com/prnews/980723/co_canyon__1.html

So, poorboys get an F* on his report card too?

Why wouldn't he. Derivatives are one the CB's biggest tools.

10:05 TREASURY WANTS CONGRESS TO BLOCK CFTC MOVES ON DERIVATIVES.
10:05 REP. LEAC PROPOSES LIMITED CFTC AUTHORITY OVER DERIVATIVES.
10:03 TREASURY WANTS CONGRESS TO BLOCK CFTC MOVES INTO DERIVATIVES.
10:03 CFTC CHAIRMAN BORN OPPOSES LEACH BILL ON DERIVATIVE REGULATION.
10:03 REP. LEACH PROPOSES LIMITED CFTC AUTHORITY IN OTC DERIVATIVES MARKETS.
10:03 GREENSPAN SAYS OTC DERIVATIVES MARKETS EFFICIENT, NEED LESS BURDENSOME REGULATION.
10:03 GREENSPAN SAYS STOCK FUTURES NOT LIKE COMMODITY FUTURES.
10:03 GREENSPAN OPPOSES CFTC JURISDICTION OVER OTC DERIVATIVES.
10:03 REGULATORS ALIGNED AGAINST COMMODITY FUTURES TRADING COMMISSION ON DERIVATIVES.

Frown. Gold's picking up. Silver wasn't ready for a competing game in town yet.

Indications are we're going up some more.

The guys in New York are finishing up with running the morning charts and deciding what they're gonna do today.

S& P earnings for the year revised LOWER to 7.9% today from 15% on Jan. 1! Being revised lower every day!

TICK now NEGATIVE! DOW COMING BACK DOWN!

Here are some qutes:

"We should always bear in mind, as is happening now in East Asia, the peculiar genius of the IMF is to bail out those most responsible, and extend the greatest hardship to the workers, who are not responsible, who are innocent participants."

About the transition of the Sowjet Union's economy:
"But I continue to believe this transition to capitalism should have been much more gradual, characterized by much more thought....
One notices, for example, subject to some serious civil rights problems, how much more intelligently the Chinese have made their transition."

Note: Jeffry Sachs designed under IMF supervision the Sowjet Union's transition, while China didn't let the IMF impose any rules.

And here for the sake of fun, Galbraith's comments on the British Labor Party and the new Labor government:
"But what is much more important I would support it on aestetic grounds. I prefer Tony Blair to Margaret Thatcher."

I wonder what he feels about Madeleine.

It's getting close to time to either fish or cut bait. In my opinion we need to either see 5.86 spot before noon or get out.

THE Nitty-Gritty -

Chief Gold Analyst at Morgan Stanley Dean Witter, Douglas M. Cohen, has
produced a brilliant report on ALL THE REASONS, PLUS ONE why an
investor should buy some gold and gold equities to diversity his portfolio. NOW!

This is a very timely and significant gold report. Firstly, because was produced by the Gold Analyst of one Wall Street's most prestigious brokerage houses and investment bankers. Secondly, because the shiny yellow still hovers around 18 lows, while stocks continue to demonstrate illusory values of IRRATIONAL EXUBERANCE as Fed Chairman prefers to call it. And finally, because THERE ARE 100 Reasons to Buy Gold & Gold Equities. NOW!

Due to the length of the report, it is divided into two parts ( here is the last Part ) Part - 2 may be viewed at the following URL. Per custom, it's necessary to delete the extra letters "en" in the word "golden" before pasting the URL to the Internet locator -
PART - 2:

http://www.golden-eagle.com/editorials_98/cohen072498.html

TONY PAPERT: Welcome to EIR Talks. It's Wednesday, July 22, 1998. I'm Tony Papert, and with me is EIR Counterintelligence Director Jeff Steinberg. Jeff, I had wanted to ask you first about Russia and the IMF. But before going to that question, why don't we look at an exchange between EIR Washington Bureau chief Bill Jones, and Russian Special Envoy Anatoli Chubais. Chubais was holding a press conference in the Russian Embassy Monday, while the board was meeting down the street, on granting a new loan to Russia.

- Russia: Straw That Broke the Financial System's Back? -

TONY PAPERT: Welcome back to "EIR Talks." Jeff, what is the situation in Russia? Will the new IMF loan grant stability to Russia?

JEFF STEINBERG: The most optimistic assessment is that perhaps this new pile of money will get Russia through to perhaps September or October of this year at the absolute latest. I think it's important to step back a moment, and see what the impact and significance is, of this present phase of the Russia crisis.

I suspect that in hindsight, economic historians will look back on these developments in Russia, and say that this was the straw that broke the camel's back on the entire post-1971 global financial bubble.

What's really being done, quite bluntly, is not an infusion of money into the Russian economy, or anything even close to that. What we have here, is a temporary bail-out of some of the foreign creditor banks to Russia, which, again, is merely a short-term, time-buying measure.

First of all, the $22 billion figure that's been bandied around the press is vastly inflated. It includes money that's going to be made available this year, it includes money that will be available next year. Some of it is really recounting some of the earlier funds that the IMF committed to Russia.

A great deal of the money is going to simply be a credit line to the Russian Central Bank, to fend off a potential speculative run on the ruble. And the real issue here is that particularly German banks, are heavily overexposed to the Russian debt, both the GKOs, the short-term, high interest rate bank debt, other more long-term government paper.

And the fact is that by the end of July, without this infusion of cash, Russia would have been forced to go into a sovereign default. This would have been a trigger effect for perhaps the blowing-out of the German banking system, because Germany is very heavily extended, in terms of loans into Russia. You blow out Germany, and the entire European situation is jeopardized, Eastern Europe will go up in smoke. And what was being referred to a few months ago as the Asia contagion, would have been converted into a global firestorm.

Now, I think that speaking more broadly, the situation as of the beginning of July, when Mr. Chubais, who we just saw on the show, announced that Russia would need $15-20 billion immediately to avoid this sovereign default, is that we moved into a new phase of the global crisis.

If you remember, beginning in February of 1997, Lyndon LaRouche warned of a major financial blow-out being imminent. And it was no surprise that this began in Asia. Back in September of 1996, LaRouche and others from EIR had debunked the myth of the great "Asian Tiger" economies. And we saw that there was a lot of hot air and bad paper creating this illusion.

Then, in March of 1998, LaRouche said that we were about to move into a second phase of the Asia crisis, that would be manifest in severe social turmoil in some of the most vulnerable countries of Asia. And indeed, we saw that in Indonesia.

And then, to the horror of the international financiers, the same kind of phenomenon spread into Russia earlier this spring, with the shutdown of the Trans-Siberian Railroad, with various strikes, and with the financial crisis hitting at the same time.

So, in effect, now, what we've seen in the last week, is a far more sober assessment of the magnitude of the global financial crisis, and the fact that the temporary measures that [it] had been hoped would work in some sort of fundamental way of staving off new crises, are really out of control. You've got more and more spokesmen for the financial community, analysts, government officials here in the U.S. and elsewhere, now coming out and openly saying that the entire system as it's presently constituted, cannot be held together.

Last week, the Washington Post, in reporting on the "good news" that the U.S. Congress was likely to approve the $18 billion for the IMF, reported nevertheless that the IMF was becoming increasingly more and more of an irrelevant factor, given the growing scale of the financial blowout worldwide. The same article that celebrated the expected $18 billion in U.S. funds for the IMF, acknowledged that one more Russia crisis bankrupts the IMF; that Brazil is the next prime candidate for a major blowout; that nothing has been fundamentally settled in any of the Asia situations. Indonesia is back, saying it needs another urgent infusion of IMF money. Malaysia is now at the point of saying they may have to go for IMF money. And of course, Japan still remains the big unanswered question.

So, the whole situation has gone so far beyond the bounds of containment by typical IMF chewing-gum and rubber-band methods that we're really in a new situation as of this moment.

- Paralysis in Japan -

TONY PAPERT: Jeff, the Japanese LDP, the ruling party, is going to meet this Friday to choose a new prime minister. Is it possible the choice of a new prime minister is going to solve the crisis in Japan?

JEFF STEINBERG: Well, one can always be optimistic and say yes, there's a possibility of that. But I would say it's extremely unlikely. We have, I think, two dimensions to the Japan crisis. We have the immediate dimension, which is both now the political crisis of the vacuum created by the electoral defeat of the LDP several weeks back in the Upper House vote, the resignation of Prime Minister Hashimoto, and now the looming appointment of a new prime minister.

We also have, in the short term, the still-unresolved issue of Japan carrying more than $1.5 trillion in non-performing debt, on the accounting ledgers of the nine big city banks, some of the world's largest financial institutions.

So, we have an immediate element of the crisis. And frankly, what we're seeing in Japan at this point, is a degree of political paralysis that is dangerous from a global standpoint, given that Japan is the second-largest economy in the world, and given that Japan is also the largest creditor for all of Southeast Asia.

If Japan cannot get its act together, come up with some sort of means for writing off this mountain of non-performing debt, deal with the fact that some of their financial institutions are already bankrupt, and do it in a way that still opens up the avenue for new credits to be issued to the rest of Southeast Asia, to help move that situation forward, back towards some modicum of stability, then we're facing an Asia crisis that is another trigger for the whole global blow-out.

So, in the short term, I would say that regardless of the outcome of the immediate struggle over who will replace Hashimoto as prime minister, I see no indication that the Japanese institutions have fundamentally resolved in which direction they intend to go. And they're frankly very much committed to maintaining a fictional bail-out of their banks. Even when they came out and announced a plan -- their so-called equivalent of the Resolution Trust Corporation hoax of the United States of the 1980s -- they fudged tremendously on what percentage of the non-performing debt they were technically willing to acknowledge as non-performing, and therefore subject to write-off and whatever kind of asset sell-off is going to be possible.

So, you've got what probably psychiatrists would call a clinical case of denial on the part of the Japanese financial and political leadership of the magnitude of the crisis.

again, this just means COMEX stocks will disappear all the faster.
I understand the chartist approach, but supply/demand fundamentals
are more important now. Lets see silver down to $4.90 again.
COMEX warehouse stocks will disappear in the blink of an eye,
and next week silver will be 50$ per oz.

see a big decline? How much and for what reasons? TIA Fox-Man

with the observation that dividend rates are at an all time low and
declining. One of the reasons that shareholders invest in stocks
is to share. Management of corporations are not sharing the profits
with owners of the company. How long is it going to take the public
to wake up to the fact that stocks are actually giving them a poor
and very risky return on investment. When this penny drops, we will
be back in the investment climate of the 60's and '70's, with nobody
but the pros buying stocks and the DOW stuck at 3000.

Gollum:

How did you do this?

Date: Tue Jul 21 1998 11:06
Gollum ( Hi ho, Silver! ) ID#35571:
Silver is starting to look very interesting. May see some action here in the next few minutes or hour or so.


Have been following with great interest your exchange with Jonesy over the past several days. Would really like to know what tipped you off on Tuesday when this whole silver run started.

Starting to think this one should be named after you. As in "The Great Gollum silver rally"!

Is this the big one or do you expect a pull back to the $5.30 level next week?

I careful reviewing of the charts will show several very sharp
dips before gold in foreign currencies rallied so strongly in Asis. It is
just too hard to play these dips for me because then I am left with
making more and more decisions about which I will eventually be wrong.

My hat is off to anyone who can do this all the time and make more
money at it at the same time keeping his health and mental composure.
Not to mention one's relationships!

Thanks, GD

Not neccessarily a big decline, just that the factors which have fueled the latest rise will have evaporated.

Why did silver jump? Because COMEX stocks had declined. Why did COMEX stocks decline? It could be because fundamentals are rapidly turning out the way Warren Buffet said they would or it could be because Goldman Sachs is in the process of, ahem, moving their silver from one warehouse to another. They pulled it out of COMEX but haven't gotten around to putting it back in.

If the rise doesn't maintain it's momentuum, then the profit takers are going to cash in some of their latest gains. They are just waiting to see. I don't think they'll wait much past noon New York time. Especially since gold is going to move up thru next week ( IMHO ) and they will have it to play with if the silver thing has played out.

move in the correct direction ( according to the fundamentals ) which
is up! Now if we can just kick start ggOOLLLDDD!!! Hot Dog..Fox-Man

If the momentuum can't sustain itself this morning we will see some retracement. It won't go back below 5.30 until someone can explain what happended to about 3 million ounces of COMEX stocks. This is only about
ten percent of the Goldman Sachs delivery, and someone could be playing games.

Or it might be the natural progression of the fundamentals.

Or it could be that it's being shipped to WB's warehouse in London.

We need to see something happen in the next 45 minutes.

"History tells us that a SIGNIFICANT market correction is
inevitable, but when the crash may come is anyone's guess,"
Federal Reserve Chairman Alan Greenspan warned in his
Humphrey-Hawkins report to Congress.

It is indeed foolhardy and financially reckless to ignore
the comments, warnings and HINTS of the most powerful financial man
IN THE WORLD.

The Fed Chairman used the words "SIGNIFICANT" and "INEVITABLE" -
Need any reasonable and prudent investor be hit in the head with a
sledge-hammer to understand what Greenspan is saying???!!!

The greatest irony I perceive here is the following. Stocks
will fall hard... very hard. And who will be blamed for
the financial Armageddon which will ensue... BUT OF COURSE,
IT WILL BE Fed Chief Greenspan!!! The politicains will claim
that he didn't assert himself enough - that he should have been
more forceful in his warnings - that he should have expressed himself
in more mundane vernacular. After all, who can understand
"Greenspeech?"

The politicians will imply Greenspan should not have minced
words - he should have just come out and blurted:

"THE GOD-DAMN STOCK MARKET IS GOING TO HELL IN A HAND BASKET,
YA BUNCH OF IMBECILS!"

Without a shadow of doubt, Mr. Greenspan will be the scapegoat
who caused the SECOND GREAT CRASH... which like its
predecessor may well take nearly 25 years to break even.

Unfortunately, Mr. Greenspan is to "earn" the dubious distinction
of taking FIRST PLACE away from the 1929 Winner, Economist Irvine Fisher, in the Hall of Finacial Infamy.

What irony...................

still the same ole same ole. Wanting, wishing, hoping, praying that the DOW will crash so that their gold price will rise and they can say..........."told ya so". Ho hum..........
CHEEZY - WHAT DO YOU HOPE TO GAIN FROM THIS 'IMPENDING' DOW CRASH??????!???!??!!!!?? IS IT REVENGE? IS IT JUSTIFICATION? I ASK THIS QUESTION ABOUT EVERY QUARTER AND NEVER GET A SUFFICIENT ANSWER. PRAY TELL. AND TURN OFF YOUR ALLCAPS KEY..........
and when the DOW stops it's current trend and resumes its long term trend ( UP ) .......will you finally turn off your ALLCAPS??
What will happen to metals stocks during a crash?? Are they impervious to a crash too?? NO! I scratch my head constantly trying to figure this gang ( not all ) out.......
got gold?
GOT ( a ) LIFE?
away....from here so as not to cloud my good judgement ( all the while NOT sticking my head in the sand contrary to how some may respond ) ........


bring on the Hep....

tells me that the RSA stocks ( HGMCY, DROOY, RANGY ) as well as
the Canadian juniors are going to go up by the end of next week at
the latest. This will be the beginning of a 6 to 9 month rally of
significant size. At least as good as anything we have ever seen.
The Canadian juniors in particular have dropped on such low
volume that they are going to burn rubber to the upside. RSA's
also declined on low volume and will do the same. Waiting any longer
will get very costly. ( But we have all heard that one before, haven't
we? ) . Good luck and prosperity to all of you.

Thanks, GD

GOLD AND SILVER GETTIN' WHACKED TOO!

silver was in a sideways channel for weeks and this was a CLASSIC breakout.......that is all........watch it fall....
away.......
realistic

Earl wanted to know when to buy in or if to chase..........just wait Earl.........just wait......you know this already ;- )

Anyone have any ideas on why gold and silver turned sharply south in the last hour?

of 292.00 so far, and Sept Silver hit 5.67 What happens from here?

Couldn't think of a better fellow to take the rap for the financial
catastrophe which is about to befall us than the arch-traitor Greenspan.
Ayn Rand was right about him. He soldout everything he knew to be
right for political power. Now that power he so lusted for is going
to destroy him. I think Shakespeare called it being hoisted by your
own petard. In the case of Greenspan it's about time.

with the DOW down, US$ down, Bonds down...bad timing to try to drive pm's down...inmho...wait and watch...

Sorry about the big caps, but it's been a BIG CAP MARKET!--till now....................: (

Away to stick my head in the sand some more until reason and rationality returns to these dramatically undervalued equity markets that are destined to always go higher and never lose any money...in the LONG term, of course.

And, yes, I'll confess to having a few thoughts now and then about gettin' some revenge from all the shameless paper-hangers!

Per techs, sizable drop to be expected. We leapfrogged over the 100-day moving average yesterday, so "tidy profit" takers are taking it ( sell stops at 574ish ) . It's as if yesterday was too good a day so we've got to brace it in today ( consolidate ) . Think the days of sub-$5 ag are over. The fundamentals. Watch Comex.

According to the Princeton Economic Institute, there is a 8.6 yearly global business cycle stretching back many decades.

Over a four months ago they said that the top of this global business cycle would occur at 1998.55 which was 20 July 1998. The cycle would then wind down until 2002.65.

Russia's fringes fraying fast
http://www.nando.net/newsroom/ntn/world/072398/world31_26791.html>http://www.nando.net/newsroom/ntn/world/072398/world31_26791.html

Governor considers taking control of some of Russia's missiles
http://www.nando.net/newsroom/ntn/world/072398/world31_26791.html

That bet is looking shaky...
Have you ever had a song in your head that won't go away?
Tinky-Winky. Dipsy. La-La. Po.
Please make it stop....

TICK...TOCK TICK NOW A NEGATIVE 1001! DOW DOWN 28! NASDAQ DOWN 17! Who's head is buried where? Away to sell some more paper!

I say look-out above for pm's...crb up too..

Yes, it has been very hot here for some time. We must cool it. EBrother, settle down.......plenty room room for all geniusii@here@kitco.....a very goody one indeedO..."got ( A ) life?"...copyright EB.......cheers....!
GO GOLDBUGS!!!! ( .....to cooler climes ) ( .......if they still exist ) phuck nino.

But the URLs won't post - anyhoo check nando-global if interested.

Watch for silver dispsters this afternoon.

is now over for the week. I would like to thank all of you who participated. Those of you with stocks might like to contact your brokers. The stocks will lag behind for a bit.

For next week, we hve a nice little rise in gold scheduled.

There has been a certain amount of interest raised in doing another silver rally. I will be looking into it. Maybe we'll even do a BIG one.
Tune in next week for details.

I thought I should try to get this out as early as possible, for those of you that are pondering what to do before the close this week.

A very interesting week. Silver finally made up its mind and headed up. IMHO this has very positive implications for gold. I am pretty much convinced that the PM lows of May/June define the bottom of new up channels for all the metals. How long it will last is still a question. But there is serious money to be made in long positions in the near term.

Gold - Silver clearly is now moving in an up channel. Thus it made its recent launch from the bottom of this channel. To me this means that gold must also be at the bottom of its channel. Thus I need to redefine the gold channel. I've been wanting to do this for a couple of weeks, but have been waiting for the confirmation from silver. The new gold up channel ( solid lines ) has a modest slope. My expectation is that gold will begin its move soon, and will move to the top of this channel, now around 320, roughly at the same time silver hits the top of its channel. So I have been spending the week filling out my gold portfolio. Topped off my Feb 330 options collection. ( Still have a bunch of Dec 330's ) . Went long gold futures ( my first time in gold futures ) , and have nearly filled out my collection of RSA gold stocks. Have not yet filled my HGMCY order. Been trying to cut into the spread, with very little success. If gold does not break out of the old down channel ( top currently around 310 ) when it makes its move, this will be very negative, and it will be time to exit everything.

Silver - Hurrahhh!! I'm still long from around 5.15. I increased my position by 50% when silver broke out of its down channel on Monday. I am quite certain that this new up channel will be at least as wide as it was during its previous move up, and I have defined the new up channel accordingly. I will not sell at least until the London close hits this channel top, currently around 6.20. The drop today really doesn't concern me at all. Then, I wouldn't be surprised to see silver stay close to the channel top for another few weeks before declining. This could take it up another 20 cents or so.

( Earl: A 40-60 cents move in silver from here is still not bad. )

Platinum - Well, I got the pull back I expected, and my small counter-trend short position is doing well. However, I was not happy with the up channel I had defined. It was a little too fat, and the slope was not inspiring, given the strength of the platinum move. Also it would intersect with the palladium up trend line around the end of the year, and we all know that can't happen. So I drew another up channel, with a slope equal to that of the palladium up trend. The width of this channel is very close to the width of the channel during platinum's last up move. I like this, and I like this new channel. The old up channel is still shown, in gold. The new up channel is shown in blue. I think the next peak or valley in platinum will show the blue channel is the valid channel, or something very close to it. My only question now is, will platinum next hit the channel bottom, or will it go back up to again test the channel top? I am watching its action relative to palladium very closely. One thing for sure! Platinum is now very strong.

Palladium - No sign yet that the long established up trend line is beginning to fail.

I agree. I am still bullish about silver. We are just gone over a minor foothill. The rockies lay ahead.

We all need a little dip to buy into now and then. Think how boring life would be if it was just all monotonus up up up all the time. This keeps the juices flowing.

TICK....TOCK! TICK NOW A NEGATIVE 1298! DOW DOWN 50 AND PLUNGING! AWAY TO SELL SOME MORE PAPER!

gold price drop on the Canadian golds I own. Not even trading.
Volumes of under 10,000 shares some under 3,000 shares. Down
volume is finally drying up completely. Will stick with forecast for
next week being up. Let us hope...but markets always tricky at BIG
bottoms to keep people OUT.

Thanks, GD

MINDSPRING now down 12! Yahoo down 9! Lcos down 7! Even the Amazon down 8! HEEEEELP! Away to sell the internet stocks before they plummet beyond my comfort zone!

In my estimation you have a slight retracement. As you know,
markets do not go straight up in most cases, just as they do not go straight down.
I believe the trend in Silver is up. I could be wrong, but If you look
at the charts, as well as the fundamental information, this looks like its going to go.
There will be some down days, but as the stock brokers say alllllll the time " you gotta think long term."

As a no-cost starting point to tell people to start preparing for
Y2K or any number of disasters which may hit, I suggest:

Saving all your pop 2-liter plastic bottles, cleanse thoroughly,
add 8 drops of chlorine bleach, fill with water, tighten, and
store indefinitely. And this transaction is non-reportable and
could end up being a great store of value for no cost today.
Once you start stockpiling these, you will probably start thinking
about food, other goods, gold, guns, ammo, etc.

COULD THIS BE THE BEGINNING OF THE NOT-SO-GREAT DEPRESSION II?...or just another poorly day? ( gulp&puff ) . y Cuba Libre!!!!

Up, up, up. Yes, monotonous, boring, unexciting. Totally agree. Then there's that perennially sighing concessional consolation: "Hey, what the hey! It's only money." ( It's amazing how quickly we revert to our quality of life justifications following a reduction in our quality of life. )

contacted by three friends in different parts of the USA wanting to ask me where, what and how to buy gold...Y2K even found its way into their questions...Hmmmmmmmmmmmmmmmmmmmmmmm...

http://www.theepicenter.com and they are excellent. I highly suggest you purchase the big lantern and some of the smaller flashlights...they will come in handy...

NAW! This ain't no depression--'cepting for those long the BIG CAP STOCKS! It's only a minor and temporary bout of profit-taking! Heh..heh..heh! LONG TERM INVESTORS know that this is but a minor little hiccup on the road to fabulous wealth and riches forever! : ) Away to hide my head in the sand till this little storm blows over!

Market WAY OVERBOUGHT! TOO MUCH BULLISHNESS SCHEISS! TRANSPORTS GETTING CLOBBERED! WILL LEAD THE NEXT LEG DOWN! Away to sell the airlines!

Yep. Also, with regard to your dipstr comment. I kind of think this afternoon action might be more dominated by shortsters.

The silver rally really didn't last quite long enough to attract a great dipster crowd and silver is treated much like a commodity, an industrial commodity, among the traders. Traders just love to make money on the short side.

They take it on the long side too, of course, but it's more sophisticated, more cool, to win it on the short side.

A dollar won is twice as sweet as a dollar earned.

Steve - Perth: Thanks for the LL post. Always worthwhile seeing what he thinks, as he is not a member of the establishment, for obvious reasons. Not many people belief the Queen of England runs drugs.
All: I think D.A. is right that things may be stabilizing in SEAsia. Perhaps Japan really is starting to get serious. If you are a history buff, you will know that the Japanese tend not to change until they are facing near oblivion, but they do change -- just takes more pressure than a European would need. Their society/economy is monolithic, unlike our more chaotic, patchwork system. Ours is more adaptable, but more likely to go off halfcocked in the wrong direction, or in no direction.
I think the really dangerous wild cards will be coming from Russia, as it spirals down, or China. Odd, isn't it that Russia can afford to build 10 new molbile ICBM's a year, but they desperately need IMF money? A little nuclear blackmail, and a hidden Russian military organization that is doing quite well despite the crisis. I am all infavor of their upgrading their early warning system, based on the fact that we nearly had WWIII about two months ago when a Norwegian or Swedish weather/satellite missle was mistaken for a US nuclear attack. I don't have a clue why they are so nervous these days.
Another serious threat ( economic, not military for now ) is likely to come from China. I think Jiang is trying to wrest control of the Chinese economy, and the military entrepreneurs have the ability to avoid all inspections with their military trucks -- big black market off the official economic books. Jiang may have trouble shutting this down -- how violently he does it will show us the likelihood of the current Chinese boom busting. If so -- big time trouble ahead. Wonder if Japan has any idea when they will get paid back -- 600 billion in missing investment money in China, and 1.4 trillion post the SEAsia crisis last October. That debt either has to be rolled over, or defaulted, and Japan is the creditor for most of it. Next Europe, and lastly the US. Interesting times.
The only thing that looks promising to me right now is Silver, and even this current rally may be a flash in the pan, unless it gets out that Warren B was buying again. Hard for silver to go up very fast with such a panicy equities market. The silver bulls may be worried that their assets might dry up elsewhere -- so they will probably hold off until the general equities market trend is more obvious. Hard to pull off a silver rally when the whole ball of wax may be in jeopardy. I am holding on to my silver stocks for the duration -- I will not even attempt short term profit taking.

FDIC closed a bank here in Colorado today: Too many bad loans.
http://www.denverpost.com/business/biz0724b.htm

Just an FYI

MG ( Go Gold! )

Need a good site for checking DAY-to-DAY spot price of gold over the last several months. Thanks!

Gold's inability to rally today despite a stronger yen shows extreme technical weakness. Was hoping Reify's call would be right, but it doesn't look that way. Final blood bath ahead?

Hey Mountain Goat! If you liked that little stair step in the DOW yesterday, see what we've got for you today.

OH MY!......Away to sell the small caps!

The market irritates me as I have posted before. The paper market heads up--gold goes down. Now the ink is being rubbed off the paper market as it skids downhill--gold suddenly developes sympathy pains for its lightweight brother. My rudimentary knowledge tells me that like Sandburg's poem about two paths diverging in the woods, gold is supposed to go up when the paper market goes down. So much for being an auric romantic. Perhaps as Moses did we should grind up our gold to poweder and drink the concoction; perhaps gold has nutrional value. Despite the above I am holding tight to might gold position.

http://www.bloomberg.com/

has, for the past 10 minutes or so ... shown the POG to be $300.40?

a rise of $7?

hmmm...... error? dunno... cbs.marketwatch.com seems to disagree.

time will tell.

Once again, one of our more interesting times of day when we see how much punch the ol' goblin still has in him.

Go ahead and give us another interesting DOW chart to ponder...
Yesterday's had such nice symmetry.

Will it be impressionism this time? Cubism?
And what will the title be: A bridge too far? Road to nowhere? The rift?

You have a talent with those levers.

MG ( Go Gold! Go Gollum! )

Urban legend to the contrary, gold has never shown a whole lot of correlation to the equities market. It is the bond markets that should be watched.

Okay, who wants to "invest" a dollar on where the DOW will be on the 1st of October 1998 ? Somebody will have to track the list of "speculative investors". Pick your number and who ever is closest at the close on the last day of trading in September takes it and is responsible for posting the names of the people who don't pay up so we can all give them a hard time until they do. *grin*.

Anybody in ?

If you win, everyone on the forum who "invested" will thereafter be required to refer to you by your new title "kitco king so-and-so" or "so-and-so the kitco king".

As a fellow KITCO-ite pointed out so saliently yesterday--the POG will not go up until every true-blue GOLDBUG BUYS GOLD AND HANGS ON TO IT! The
F* mantra of "I don't care...I'm buyin' more!" is right on the money! When will we goldbugs ever learn?

On the macro-economic scene, the powers that be MUST KEEP THE POG DOWN till the EURO is introduced in January of '99. They have and will continue to do all in their power to keep gold down until the Euro is safely introduced. THEN, watch the gold fireworks begin as the dollar is quietly dumped to make way for the new reserve kid on the block! Not much time left for the European CB's to lock in a low gold price so that the EURO is a worthy contender to the almighty BUCK!

OK. Just as soon as I finish seeing what gobin's gonna do today I'll go downstairs and fiddle with the DOW levers again. Maybe an interesting combination of small steps and big steps. I'll call it fractal impressionism.

Much like a cranky child, the POG will not be whole again until it has had a good enema.

Oh, or "so-and-so the kitco queen" as appropriate. sorry ladies.

Investment window closes the final minute of July 1998.

must have been an aberration ( or maybe i'm seeing things )

maybe more booze will clear it up...

( yeah right... hehe )


"A government that is big enough to give you all you want is big enough
to take it all away."
-- Barry Goldwater

sold half of my position is SS0, and getting out of here,
can,t take it anymore
away.........to the beach
l_b

Which lever was that? 100pt swing in a half an hour? Do it the other way now...

What's wrong with that? I'm just practicing with the up levers to make sure I get the right one next week when we do our little gold rally.

I'd get into your little DOW contest except it would be taking unfair advatntage since I already know the DOW closes September at 8876.75

Goldman Sachs S7P arbitrage. Market will head back down soon.

Goldman Sachs S7P arbitrage. Market will head back down soon.

RNG system predicts with very little reliability that the DOW close on 01-Oct-1998 will be 8595.15
That's ( Random Number Generator ) - works pretty good for trifectas ; )

Gollum - No problem at all - I was hoping for a nice mountain scene.

To read: S&P arbitrage. Dow to head back down. ( Goldman Sachs ) .

remember my July 23 market break call?

Major rumor in D.C.---Secret Serice Agents are not being asked about Monica Lewinsky, but about illegal drug use in the White House by Clinton. The subpoena issued to the Secret Service was about "illegal activities in the White House that they may have witnessed". The Clinton/Lewinsky affair is not an "illegal activity". It is also possible that Lewinsky, who had a special high level
pass that allows her access to the White House without being searched, may have been a 'mule' who brought in Clinton's cocaine stash.
The White House is now laying the groundwork for ratcheting up the confrontation to the level of a Constitutional crisis by firing Kenneth Starr. All these allegations are openly discussed now in D.C. by media and others, but no one wants to be the first to break this information.

Homestake wants 100% of this gem.

Prime Resources has Can $187 million in cash and the richest au/ag mine in NA, no long term debt and is one of the few NA gold producers that make money.

If you're a shareholder and you want to vote your mind, but hold shares in a Street Name.....You better call your broker and tell him to make darn well sure you receive the voting documents.

http://biz.yahoo.com/bw/980724/prime_reso_1.html

All of my major holdings of Canadian Juniors are up today! Only
a few cents, but up. All my RSA stocks are unchanged. I don't own
any US stocks and they are dowm. Looks like NEM to hit 20 next week.
ABX looks lower also. I wonder if the Canadian and RSA stocks are
going to lead the way or will they break down at the last minute?

Is there really going to be another washout in gold? Experience has
told me that it won't do anyone much good even if there is such a
dip to the downside. Most gold bears won't buy anyway and turnaround
could be so fast that you can never get back in.

Looking at charts of gold price in East Asian currencies suggest
that will be the case here. The chart of Russian currency was a case
of being a day late and it was the end of you if you didn't have gold
already. I expect that to be the case here. Don't know the day or if
I will still be alive!!! But it is coming.

Thanks, GD

A buck says 10,008.

I say 5,869 and Falling.

While she's not exactly a doll I would'nt suggest she's a mule.

Winston: As I recall that grand jury has considerable lattitude on the questions they can ask the Secret Service. WJC is a smart guy, but he has been rumored to have permanently damaged the septum of his nose by inhaling something other than marihuana while he was in Arkansas. I would think he would be smart enough to know that what he could get away with in rural Arkansas, he could not in the White House. My guess is that this is rumor.
What is more likely is that we will find out that the security of the President has been compromised in some manner -- possibly by his sexual liasons. Just imagine if the Communist Chinese or the Russians, or even Saddam Hussein was blackmailing him, or had planted a Mata Hari type. Given the 'rolling door' policy of the White House, it would not be hard at all to plant something or someone. This would have been especially effective just before the most recent presidential elections. Might still be partially effective. The Chinese apparently would not have needed to do that for information gathering. They already had John Huang. No need to pay for highlevel espionage.
What really angers me is that he is a very bright, facile individual. He described the US farmers problem -- due to the drought and dropping world wide demand -- as well as anyone in the business could. It was not rehearsed, I 'm sure, and something that Ronald Reagan could never do. What a waste that someone as smart as he is has the morals of an alleycat.

High hopes for your 401 ( k )
Are your expectations for returns on investment realistic?
http://www.cnnfn.com/quickenonfn/saving/9807/24/q_expectation/

Blooper - yes, I remember ( thought it was a lunar thing )

Bad News: POG down another $2.70 today despite stronger yen. Somebody is dumping.

Good News: Gold Stock Indices flat despite weak POG. Has all the bad news been discounted?

Still looks like a meaningful trough next week.

The following link is a 6 minute segment from radio station KIEV about the alleged Grand Jury questioning of Secret Service Agents concerning drug use in the White House.
KIEV: George Putnam showJack Cristy segment from the USA Radio Network
http://www.knfo.com/audio/jc980720.ram

Last I looked the Yen was at 141 - yesterday it was at 140.4 - how is this a stronger Yen?

Does any one know a site which would track the day to day spot price
of gold for the last several months?? Thanks

I would have to say many more shortsters than dipsters. I hope everyone who took part in our little rally got out before noon.

Copper ( CMX )
Sep
77.80
80.90
77.60
80.70
+2.90
7/24/98
11:00

HighRise

Doesn't the Kitco historical data page have that info?

http://www.mrci.com/qpnight.htm f

HighRise

frustrated;

Depends on what time yesterday. Last I looked on 7/23 it was 141.9; now 141.

The drop in POG finally allowed me to pick up my last piece of HGMCY. Still, it was no bargain. Now, if my scenario holds water, gold should start to move next week, probably in concert with a recovery in silver.

Have a good week-end, y'all.

This may help,
http://www.kitconet.com/gold.live.html#londonfix
Left hand margin, take your pick.

HighRise

For some reason the stocks have pretty much been lagging the metals the last few months. Gold goes down, and the stocks hang there and eventually drop. Gold goes up, and the stocks just sit there and eventually rise.

Anyone who wants to pick up some pocket change and doesn't mind trading paper can take advantage. Even if it shortens up the lag, all that happens is you find you got there too late, so then just don't trade.

OK, a "slightly" stronger Yen.

http://quote.yahoo.com/q?s=^XJY&d=t

You'll just love my impression of Pike's Peak.

Still in. Fishing around in my pockets for change to buy more. Still looking for a squeeze -- or get squished. Hey, what the hey . . . etc.

Very nice! The outcroppings look good too.

@ Envy: Plunge Prot Team will operate once or twice before Oct 1, so I say Dow will be 9,138; ( Getting ready for the BIG DROP a little later ) .
@ DEJ your 11:25; I thot all new AG sold out after seeing him besides Hillary during the inauguration speech. Nevertheless I respect his intellect and believe that in his heart he would like for this "almighty dollar" to have some sort of gold basis.
Someone asked about gold mutual funds, as good as any IMHO is GOLDX Gabelli Gold.

It will net one more bucks than anything else this year.

blooper: You may be right. May take time for the Russian situation to deteriorate. How about all that debt from the SEAsia debacle in October? Any news on it being rolled over? If not there is alot of disppearing debt out there -- the Europeans were creditors second in line after Japan. That $1.4 Trillion US was not chickenfeed.
I would not be eager to invest in Europe without knowing what happened to all that debt.

Concentrate on the Euro. Pension funds etc are going to be dumping funds into stocks for the first time. Russia has'nt changed and won't. Germany has lived with it so far. Our mafkets are done for. Not much more down, but not much up. Like Wak Mt., and home depot did when they got ahead of themselves several years ago. They just went sideways for years. Europe is early in their cycle with exitement in the air.

Everyone in the world knows our trees have grown to the sky. Europe is on the come.

Everyone in the world knows our trees have grown to the sky. Europe is on the come.

blooper: The Europeans were forced to be fairly tight-fisted with their money supply during the Euro set up. Now that that is behind them, do you think they will loosen credit a bit? I would think they would want to rev up the economic dynamo a bit.

So my money will be in Europe. You may ,of course, put yours in USA ifyou want, or gold etc. That's what makes a market. My fund up 3 cents yesterday. 43 % for the year.

They have very little say about intrest rates. I would think the would go into the Euro psycally conservatively. Tightly, not loose.

You won't be disappointed.

blooper: Swiss Helvetia Fund?

I'm trying to think of something interesting to do for the tail end.

FWIW Beans cyclical low Monday.Gold
July 30.Patience.Have a good day.

http://www.suite101.com/articles/article.cfm/9023

Invesco Funds Group ( Denver ) . Invesco European Fund.

Invescp PLC. London owned. Very good at things European..I am not overjoyed about investing there, But we got to be global to make a buck now.

blooper: Sounds great -- strong EURO. Only problem -- how do you stimulate the European Economic machine without loosening credit a bit? One major reason they are in a recessionary period right now is that they tightened their belts a bit too much to look attractive for the EURO launch. I think this is the basic problem they will have -- they will need to choose between a strong EURO and a strong economy -- tough choice. Right now, even the Swiss are having some trouble, except with their international companies.
So unless they loosen their belts a bit, I would guess they will muddle along - with little change. I don't know where I would put my money if I were an international investor. I might look at Malaysia.

Europe is the best performing fund, better than world telecommunications.

A nice parabolic slide into 8900 would give it a glacial feel...

blooper: Got it. Will review

Look at the returns. Why are you so critical? A new currency won't start off loose. I have nothing further to say.

You're welcome. Talk to you later. They won't raise rates, but neither will they lower. Thats my bet.

All:

With gold and silver nosediving today one might be tempted to believe that the deflation story was alive and well. A look at base metal prices tells a vastly different story. Today's action was very strong.

Copper +4%
Lead +5%
Zinc +2%
Nickel +5%
Tin +3%
Ali + a little

The base metals prices lead the Asian downturn. They may well be leading the upswing. Bonds will not be happy. Silver will.

More later.

blooper: It is just that we were talking about a US market crash only yesterday, and the suction would very likely bring everything else down. Even Europe. If you believe that the US markets will not crash yet -- I agree. I like your analogy with WalMart getting ahead of itself.

We will not crash wihout intrest rate increases. We will fall further until October reporting period is over. It could be a Titanic slidre. If so Europe will go too. I havenT a penny in the market until i see my way clear, or until Nov. !. Jerry Favor on CNBC

Ford bids for Kia Motors

SEOUL, South Korea ( Reuters ) - Ford Motor Co. and other foreign companies submitted
documents Friday to bid for South Korea's troubled Kia Motors and its sister firm, Asia Motors
Corp., a Kia spokesman said.
Ford and Korea's second-largest automaker, Daewoo Motor, followed South Korea's largest
automaker, Hyundai Motor Co., and upstart Samsung Motors Inc., which submitted their
documents earlier this week, spokesman Kim Sam-sung said.
He said other foreign companies also had submitted letters of intent by Friday's deadline but
did not want their names disclosed. Ford and its affiliate Mazda of Japan are already Kia's
biggest shareholders with about a 17 percent stake.
The Korea Development Bank, Kia's main creditor, plans to sell Kia and Asia Motors
together. Kia and Asia Motors are both under court receivership, a form of bankruptcy
reorganization, after nearly collapsing last July.
The bank said the buyers who need to take at least a 51 percent stake in the companies.
The bank said Kia's total liabilities were estimated at 8.8 trillion won ( $6.8 billion ) at the end
of March, against its total assets of 7.7 trillion won ( $6 billion ) . Asia Motors had 3.1 trillion won
( $2.4 billion ) in liabilities and 1.6 trillion won ( $1.3 billion ) of assets.
A bank official said creditors were discussing writing off some of the debts of the two
companies.
The bank said candidates would be offered opportunities to assess the finances and
management of Kia and Asia Motors after July 27 and would be required to submit bids by
Aug. 21. After a 10-day review of the proposals, the creditors would announce a winner on
Sept. 1.
"It will be a race between Ford and Hyundai with others trailing behind," said Ji Sung-chul, an
analyst at LG Economic Research Institute.
Kia officials refused to disclose details of the bid letters, but analysts said Ford was best
placed to win because of its long-time ties with Kia.
"Among other things, Ford has a well-established business link with Kia and can bring in
foreign capital and advanced technology into the country," said Oh Chang-suk, at Daishin
Economic Research Institute.
Ford and Mazda Motor Corp. jointly own 16.9 percent of Kia.
But Hyundai can argue that its larger production would give economy of scale benefits and
consolidate an industry suffering from excess capacity, analysts said.
"It is true Hyundai has troubles in competing overseas with its 1.6 million-vehicle capacity. If it
can increase the capacity by one more million, that will help a lot," said LG Economic's Ji.
Daewoo Motor said it would like to join with Hyundai to take over Kia and Asia Motors, but
Hyundai has refused to comment on that option.

I bought a gold stock this afternoon in which there was a bid and ask difference of 1/16. My bid was in the middle at 3/32. I got the stock at my offer price, only after calling the broker and complaining that the stock was trading at 1/16 so why had my trade not been executed. It executed 5 minutes after my call. So now I look at a daily chart of the stock and it has been trading all afternoon at the 1/16th level and never at the 3/32 level at which my trade was executed. I ask the broker how this is so and they tell me that it was the market maker's take of 1/32 that explains the discrepancy. I ask, well shouldn't the trade be listed on the charts as having traded at the 3/32 level. They give me a lot of double-talk. My question is, can what I described above be so, or have I been flim-flamed?

D.A.: Comments about the JOC index or the Dow Jones spot commodity index? My guess is that the deflationary phase of the SEAsian debacle is lessening. Precious metals -- gold at least -- will probably not start to move until the spot commodity price indices rise in a big way. Investors conditioned not to buy gold will be buying commodities instead -- at first -- anyway. Not like the inflationary times of the 70's -- not for some time.
It will be interesting how long the US markets remember to obey AG and stay down. If this equity mania is like that of the 20's, it will only respond to rising rates, and AG will be reluctant to raise them too much, as if the markets did crash, he would go down in history as the only FED chairman who began and ended with a crash, IMHO.

Thinks top is in. Would like to see break of 8524. He is now flat and expects a good rally next week in which to short. Will become a bull again if goes above 9412 intraday.

http://www.geocities.comWallSteet159691agpm120.htm

If I got this url right it can provide a 120 record of PM prices..let me know if it works for you.

I took retirement funds out of Europe yesterday. I have no funds in my personal account. I will play rallys with Europe. Would at some future date invest. Soonest invest. date would be late October. Europe is my investment tool, because of time changes , and because it is not overbought cyclically..... The world is, as you know, in deep doo doo.
No market is a great market right now.

5-6 gunshots inside capital building. CNBC

that commodities have bottomed. In other words, lookout below Asia.

http://www.geocities.com/WallStreet/59691/agpm120.htm

DOW DROPPING LIKE A STONE WITH 10 MINUTES LEFT!!!
-10 ON THE DAY SO FAR!

WHERE IS THE PPT???

ahem.

Was that believable? Or was it overdone?

With apologies to GC... ( snicker )

MG ( Go Gold! )

Fear will permeate investors in two weeks. Rally coming next week.

blooper: Thanks for the clarification. Yesterday did not look good. I may regret keeping what little I have left in the equities markets. Mostly precious metals. Some retail. Betting that any real downturns will be forced by a rise in rates -- like you. AG will have a tough time forcing himself to do that.

Just when we thought silver was finally enjoying a good rally, smash... How many more false starts will we have before silver finally causes the shorts to lose their shorts? ...and when will they also lose their shorts in the gold market?

Once again, PM's and gold stocks have been battered. It seems that those of us who made the right decisions too soon keep getting beat up again and again, before we even have a chance to heal from the previous bear attack by the shorts.

When will the bleeding finally stop?

--Skip

dunno lemme go search cnn and all.

When Asia recovers. Keep powder dry. Don't catch knives.

Sorry I've tried the past two urls and they don't work. Heres another

http://www.geocities.com/WallStreet/5969/agpm120.htm

Possibility severe downturn could come without rate increase. I know it sounds faulty. But I got a feeling.

JTF:

Your average US based investor will never buy a commodity. They may buy some natural resource fund or a gold stock or possiblely some gold coins but they will not be wading into the nickel ring.

The reason why the industrial metals are so worth looking at here is because they are the commodities most sensitive to the Asian situation. A large part of the weakness in gold over the last 6 months can be laid at the feet of diminished, like in 0, Asian demand. One of the people that I work with has an Asian industrial client that is normally a buyer of 2 tonnes of gold a month. They have in the year 1998 purchased exactly 0.

One of the interesting things about today's decline in gold and silver is that it came right after the London fixing and was engineered at least in part by Aron. Good buyers of the day, were some folks out of ( drumroll..... ) Singapore.

Take a look at the base metals charts over at the LME. I don't think they are updated for todays action, but they certainly tell the story of the long deflationary trend which has been with us in the commodity sector for better than a year. If the reversal we have seen in the last 2 weeks is for real, it will signal a large change in investment landscape.

As has been enumerated here many times before, don't look for the 401k investor to get the bull market in precious metals going. Look for them to be in at the end.

Rally coming next week. If theres anything you want to unload that would be the time. I have a feeling of impending doom for some reason. I hate to deal with emotions. But this is no time for greed. I'm hesitant to play rallys. But I will. Europe will just lose you less money.

OHhh nothing, Klintons is getting rid of his current bodyguards, thats all.

Took delivery of a decent pile of Ag bars yesterday, now I wake up and Ag doin' the silver-silver-shake. My gut said to buy last Tuesday, then i done some thinking so waited till Friday. Always the thinking that gets me in trouble. Mental Note: aurator listen to your gut.

gurgle

Now that might be one for the record books.

shots fired on capital hill!!!

All: Is WJC about to testify? Just a thought -- if WJC is being asked to testify before K Starr gives his summary to Congress for possible impeachment proceedings, perhaps he has something after all.
Nothing on ABC regarding who got shot, just gunshots noted, stay tuned to ABC.
http://www.abcnews.com/sections/us/DailyNews/clinton980724.html

Ooops. Sorry about that. I was downstairs trying to set it to come out as even as I could for the day so it would have a nice horizon line and I didn't see your request for a glacial slide in time. Oh well, at least there's a little slide.

COMEX Metal Warehouse Statistics for July 24

-- TOTALS
Gold 1,082,288 + 0 troy ounces
Silver 80,272,956 - 619,747 troy ounces
Copper 55,118 + 604 short tons

N/A= Not available.
*******************************************************************
Another 600k drop in Silver totals! Not bad! Keeps this Silver rally
in-tact ( IMHO ) ! Let's see how next week plays out. Thanks for alot of
great comments from fellow kitcoites! I'll be in the mountains next
week, away from this great site! It'll be tough. I hope my cell
phone works! See Ya! Fox-Man

Would be easier than getting him to tell the truth.

http://www.geocities.com/WallStreet/5969/agpm70.htm

http://www.geocities.com/WallStreet/5969/agpm30.htm

http://www.geocities.com/WallStreet/5969/agpmlt.htm

Here are some other time frames, supplied by another poster sometime back which I bookmarked.

The president was not present, though individuals shot -- details unknown.
http://www.abcnews.com/sections/us/DailyNews/shoot980724.html

He'd rather climb a tree to tell a lie, than stand on the ground to tell the truth.

Did you get Dr. Georges prescrition for your Briggs and STRATTON?

JYU8 down .07% & GCQ8 down .89%. Actually, a little more ominous than usual because the JY was up most of the day & only ended down a tiny amount, yet the GCQ8 was down 2.60.

WASHINGTON ( AP ) -- Two officers were injured in a shooting inside the Capitol today and a suspect was apprehended, Capitol police said.

Federal law enforcement agencies and emergency vehicles rushed to the area.

Tourists and visitors were being ushered out the Capitol, and authorities strung crime scene tape around an entrance on the Capitol Plaza side of the building.

An ambulance was on the scene on the east side of the Capitol.

Proceedings continued as scheduled on the House floor.

Capitol Police Officer Vito Raymond said, ``We have two officers injured. I can confirm there was a shooting.''

Raymond provided no other details of the incident, which occurred on a busy day on which the House was in session and the building filled with summertime tourists.

Capitol police wouldn't let anyone off the first floor. All hallways and stairways were blocked off and elevators were shut down.

FBI spokeswoman Susan Lloyd said the wounded officers were members of the Capitol Police. She said agents believed there was only one suspect in the incident, who also was wounded.


AP-NY-07-24-98 1613EDT




Copyright  Associated Press. All rights reserved. This material

D.A.: Comments appreciated. If Europe is about to turn up, and Asia is recovering, perhaps the US dollar will weaken a bit, pushing up commodity prices some more. Looks like crops in the US will not be that good this year. Texas probably close to a wipeout. Wish I were more comfortable with commodities other than silver and gold.

Doing my best Monty Python guardian knight impression
"It's only a flesh wound..."
Paper gold took a ( NOTHER ) good thrashing today.
I bail when XAU dives below 64 ( monday?... )

Gunshots Fired at Capitol
http://www.abcnews.com/sections/us/DailyNews/shoot980724.html

He might have been decorated, but not 2 cops.

6 mo months before Asia ( GOLD ) turns up.

I just think we got a while to go. 4, 6,8 who knows. We go to chill out. Gold ain't even close.

Jobe was quite a man. He put up with a lot. I, however do not have the patience of Jobe. God knows. I'm going fishing on the gold issue, and let you guys surprise me. I won't catch all the move, but I won't be snathing my hair out either

Turn up, and the dollar down to give gold a break. It's too early for the Yen. The Dollar might be a little weak, till Asia goes down again, China devalues. Then up pops the dollar. There you go!

Re: your conversation about strength of Euro earlier today.
The debt of all Euro countries together is less then:
In the Land of Debt and Pride!
http://www.brillig.com:80/debt_clock
http://nationaldebt.com/total_national_debt.html

So, I for one can see no problems in the future with the Euro.
For years the US $ held firm despite the debt. It even gained on the PMs.

What about the debt of Europe and the EURO- Countries or Russia or Japan?
Has anyone of you the latest numbers?
The Euro-landers are not heavy market participants so far. What will happen when they all become speculators? Will the markets not go higher and higher.
Corrections will be our friends. Markets will go higher. All metals will go much higher. Would it be possible for the US $ to collapse 50%? I think so. Could the Euro do the same? Never! So, in the next few years Europe and PMs will be much safer then the US markets in IMHO.
S.

Thanks for putting it better than I did. Europe is the place to be. The later on the better. I'm not sure about short term, and would better be safe than poor.

You should read Carl Jung's "Answer to Job". In essence he says
that Job proves himself to be better that God in some areas. Job
has patience which God lacks. That is why God often destroyed what he
wanted, when he wanted.

I liken the IMF to be like God. It destroys what it doesn't want
to understand.

Gold is like Job. Patient, quiet, dependable. Superior!!!

Got patience??

Thanks, GD

Just low on equities.

I use Quote.com for my commodity charts. For gold, use the symbol GCQ8 for August Gold and use a Monthly chart to go back a year or Weekly to go back a year in weeks.

God is God. Gold ain't a whole lot right now, and Job was a better man for his experience. Let's hope we all are.

God is

I agree.

it begins ( -of course ) with computers...
http://www.nikkei.co.jp/enews/TNW/page/dspage0002.html

Those who love God, and those who believe they are God.

Your report mentioned Ford and Mazda jointly own 16.9% of Kia. this is up from the roughly 10% Ford owned 3 years ago when I last checked. Sounds like they are taking part in the merger mania like Crysler's recent merger. Reminds me of a sci fi movie I once saw where all the restaurants in the world were owned by Taco Bell. ( Burp ) IMHO

I like to trade silver like this...take an amount that you feel you can lose without losing any sleep over and then figure out what size silver contract or option you can afford....sometimes it's a 5K COMEX, sometimes it's a 1K CBOT contract. At 1K, I can enter and place my stop at my loss limit and then watch it as needed. The next thing you need to decide is entry point...$5.00 was a good one in this last move, this one may be in the $5.30 area, or when it finds support. All of this is at your decision. In Options, give yourself time...options too close in can burn your cash fast on expiration.

Good luck

Dr George
Yes, thanks, got your recipe. Shall try it once the rain stops, did I mention its been raining for weeks?

if this url does not successfully post, try
a Yahoo search, with "nikkei"
and scroll

3rd kind:
those who believe there is no 'god'/'God'

Habitual by nature, Most and women alive to day don't know what a depression is, They've head about it but have not experienced it. That's why history to repeat it's self. So those who havn't been tried and proven in the market place may gain experience and somtimes that hurts. BUT IS ALLWAYS FOR THE BEST.

I found China computers, no problem. They will be an enemy I fear. Alos when they start driving, I'm buying Oil stocks. They will be sooo cheap soon. Gold too.

Thank you

Oil's going to 9.00, how much worse can it get anytime soon. Severe recession, deflation etc. I think next year with rates rising could get real hairy going into 2000, and with Asia starting to consume again. WOW.
Jobe time, except CRB heading up. Gold too. But what else in the world, would be happening?

A man that believes Another is God.

And, oh, we drink and watch this debacle together, yes/no?

Salud! to all "immortal" GOLDBUGS!!! ( g&p ) to YA!

I thought Another was really Jose Jiminez. My name Jose Jiminez.
Sold PTEN a couple a weeks ago for 9 one eigth. So much for buying low. The oil field is like the gold mine. Jobe indeed.

Pten@9.125....ME TOo..........free@last!...........btw, oil has already been $9. last month. ohmy. I need some strong hemp....not to smoke!.....to hang meeself. OIL SUX.

Sounds to me like Ford is following Templeton's advice and buying things that are out of favour. I assume that means they think Korean manufacturing will be in favour at some point reasonably soon. Who are the real contrarians?

If somtimes less is more, can't somtimes more be less? Who knows! anyway it all meets in the end and as Robert Redford, quoting a great poet once said: "And a river ( market ) runs through. We are haunted by great waters ( markets ) ".

Just as things were heating up with clinton being supeoned and monica being a drug mule to clinton we have this convenient shooting in the capitol that will divert attention away from clinton. My prediction: That the mainstream media blabbers on incessantly about this shooting until the monica and supeona stuff die down. add other body to the clinton list.

The Nikkei has already bottomed -in terms of yen.

And yen-holders, the Japanes people, already know this.

The yen in dollar terms, is still figuring out, that it will play-catch-up, soon.

The U.S. dollar, and U.S. investment markets,
are in the fading-light, of their collective Indian-Summer.



But Sir/Ma'dam....
there is nothing wrong, nothing a-miss;
the Titanic is fine.

We are the most magnificent....
ship ...-of state....
... = U.S. dollar & U.S. markets ...
the world has ever known.

We are un-sinkable.
Everything is ok.
Go back to bed.

The life-boats ...-such as gold & silver/investments....
will never be neccessary
on such an invincible ship
as
the Titanic ..... = the USA .

Note: All the above is only/solely/soul-ly...
my 2-cents worth opinion.
Sincerely,
David



Here is an un-related, independent source of nikkei & yen charts:
http://www.nikkei.co.jp/enews/TNKS/stox/

I have never met a saxophonist who didn't have a drug problem.

I have to say, if you believe in the conspiracy stuff, today was totally predictable, vis-a-vis gold. After all, the goal is to make alternatives to equities unattrative, right?

We watch this manipulated market together, yes?

Fergie

When I was in South America there were various brands of cars but most of the medium duty trucks ( 1 to 2.5 tons ) that weren't Mercedes were Kia. Roads there were so bad in some places that the heavy rigs like you see in the US would be shaken to bits in no time. IMHO this may be a way of gaining market share in Latino countries? Considering they can't buy Mercedes. ( %-^] )

From Investors Business Daily article of 7/21/98:
'What's Ahead for the U.S. Economy"....:: )
"The underlying fundamentals are sound.
"The economy is in fine shape.
"It's just adjusting to this external shock ( Asia ) . ..."
from Mickey Levy, chief-economist, NationsBank

( ( -whose 'nation'-?, Mickey ... ) )

Oh...?
Well then, maybe it's not a flea, or a 'nat'...
but maybe it's a 'tick'....
ticking ....
like a tomb-bomb...

and ticking even more....
the thoughts
of another ... thinking ...

Perhaps it is not just an irritating 'flea' - this .. 'ASIA' ..

Perhaps it's a tick, ticking ...
with .... mortal, 'monetary-Lyme's disease' ...
for which there is no successful.... vaccine...

other than
the painful return
to gold-standard-based, and convertible
international
money and credit
....

"bug-bomb" ... anyone ?!

( any-one listening-?...
in the silent needle
of this hurricane )

Here is a link I collected re the Chrysler merger. Note I own no stock in either it nor ford ( although I did own some GM until I sold it last year ) . Purely for educational purposes, kids don't try this at home, lest a dinosaur fall on you! http://www.fiu.edu/~jrojo01/index.htm

Goldfever:

Agree 100% on Japan. I am focusing new investments there instead of gold. The Nikkei has enormous upward potential and its reaction to news is a thousand times better than gold where the action remains perfectly awful. And no CB is doing its damndest to keep the Nikkei down; quite the contrary.

About the only positive thing I can say about gold today is that RJ's Monex write up argues the January lows probably will hold.

Hepcat: A lot us here would be tickled pink to see your THREE-TWO-FIVE again. Any idea when?

Check out commodities. Asia is about to go belly up. Intrest rates are headed down. The bond has to finish it's run before gold will rise. Take a long fishing trip. Gold ain't goin nowhere but domn right now. I'm sorry to say.

Many others who distrust Klinton figure he or his lieutenants
orchestrated the shooting or at least lured somebody into it.
Yes.
To draw attention from traitorous and impeachable activities
and the investigations thereof.
What I can not fathom is how the opinion polls stay so high
when folks are asked if the President is doing a good job?
I guess Klinton has rigged that game too.
I wonder if he owns any Gold.

Oil patch, Gold fields = mine fields!! U can lose body parts!! US Tulip Market = main structural supports all fixed with the latest explosives, wired, and waiting for THE SIGNAL! Could come at any time. U could lose ALL!

Old Gold et al.
My guess is that the Nikkei will continue,
in it's new bull market;
and the yen will follow-suit,
as already clued/signalled by the D-Mark & Sw.-Franc,
which are the 'classic' currency alternatives
to the U.S. dollar.

The fact that the U.S Bond is not reaching new all-time highs right now,
even as the CRB has just taken another drubbing/pounding/bearish-sell-off...

should give pause for thought....

something is 'amiss'
on 'main-street-U-S-A'......
U.S. dollar-denominated investment markets
are bleeding from the seams & pores...
bleeding with the bad-blood of
awakening fear
over the false supposition
and myth....
of the pretended soundness, and 'sanctity'...
of the U.S. economy...
& of U.S. investment markets...
and of the U.S. dollar currency.

It is useful,
to pause and remember the historical fact, that:

All currencies originated as
receipts
for gold &/or silver
weights/units -
whether coinage, bars, or ingots.

Alternative currencies to the U.S. dollar,
are beginning to look increasingly more attractive
to the world's liquid/hot capital
when compared to the U.S. dollar....
not because they are convertible ( -yet ) to gold &/or silver,
but because they, their economies and their people,
are increasingly recognized.... as more real...
more determined...
more willing...
to survive
to work
to risk
to create
to produce
to save
to invest
...
even
in the face of
mounting adversity.

Liquid/hot capital, is like ... purest 'spirit' ...
in the material world.
It will constantly seek
the place and time
where it's freedom
may best flourish.

Goldfevr, you and your friends, I hope you enjoy yourselves,
blasting and tearing away at this free county
It is not hard to see where your loyalties are, Japan
and or China
just remember---
don't awaken the mighty sleeping dragon
you may be sorry.

Some interesting speculation I heard on the radio during the week that GM may shut down permanently and move all auto manufactuing from N.America. What a sight that would be.

Dow Gold Ratio = 30.72. The 50 day moving average is 30.64. A year ago the ratio was 25.03

The media reports that the shooter was a 41 year old white male who was known to the Secret Service as a person on file who had threatened the president. Ok, lets have a head count. Who's missing from Kitco today.

XAU/Spot Ratio = .227. The 50 day moving average is .246. A year ago the XAU/AU ratio was .290. There have been 26 occasions where the XAU closed in the 66.XX range. Ranked according to the gold price, today is #23. The #1 ranking was on August 6, 1986, with a gold price of $360.80, an XAU of 66.24, progucing an XAU/AU ratio of .184

You seem new here
So I will say this politely
A rose by any other name is NOT goldfevr.

To speculate about the strength of Silver and Gold
To speculate about the weakness of the almighty dollar
To ponder on the absurdities of the current US markets

Is possibly contrarian, but quite the opposite of treasonous.

Treason is selling out your country. Like giving away defense secrets to other countries.
Treason is enslaving your populations with debt.

Gold & Silver, and all of the other commodities are *real*.
They are not paper which can blow away in the wind

To label one who strives for Americans and the world to wake up and 'get real',
is to grossly misunderstand what Kitco is.

You may want to reconsider your position.

Regards,

MG

Gold/Silver Ratio = 51.04. The 50 day moving average is 55.21. A year ago the ratio was 75.20

Capitol Hill shooter was one Eugene Weston from Helena, MT, and, as you said, was known to Secret Service. I'd love to make a couple of one liners out of this, but decency prevents me from doing so...

Has anybody news about Freegold ( Freestate consolidated goldmines ) .Quoting stopped recently on the Nasdaq ( Ticker symbol:FSCNY ) .Thanks in advance.

Spot gold $293.90; spot silver $5.33; XAU 72.25

goldfevr: I think it is very likely that Japan is bottoming. Can't imagine any worse news that that of the last few months, and yet the Nikkei does not seem to want to go down any more. Perhaps we should be looking for an inverted head and shoulders. Soon the Nikkei may be one of the few stock markets with little downside potential, and much upside potential. Even better than Europe, because it has been beaten down more. Nearly 9 years. But higher risk. The only wild card is China -- which I fear may be about ready to go into their 'bust' phase. If China somehow weathers the next few months without devaluing, the debt issue is addressed with at least by some sort of 'roll over', and Jiang is able to reign in the military 'black market' entrepreneurs without causing complete mayhem, the worst may be over in that part of the world. I think for now it is still very high risk -- except for a small amount of capital you can afford to lose.
Your point about bonds in the US is also a good one -- commodity prices are approaching their cyclic lows of nearly 6 years duration ( please forgive my comments of 9 year cycles -- more like 6 to 8 years for commodities ) , and yet there is little response to the stimulus. Perhaps that is a sign the US markets are weakening. Certainly this last rally did not have the breadth of previous ones, either. Probably no crash in the US, however till y2k, IMHO. Never underestimate the persistence of those baby boomers to put equity money in their retirement accounts -- a large number cannot recall when money markets out performed stocks.
Gold equities will be worth buying when this current downturn ends -- short-intermediate term, and possibly long term. Just keep your powder dry until we have a clear breakout of our two year old bear 200 or so day moving average. And, bail out of gold equities during any general market equity selling panic. Can be done if you are numble, but I must admit over the last two years I have not made much money overall. But I think I am getting better. Saw this one coming ( with some help from sharefin ) .

Spot gold $303.49; spot silver $5.57; XAU 81.40; D/G Ratio 27.64

I am anything but 'new'.
And you,
truely,
get my goat.

MG was referring to 18:49.

I believe you have misunderstood.

Look at the post at 18:49 ( from a "Gold Fevor" )
and tell me it wasn't you.

It was "Gold Fevor" is was talking to, not you. "goldfevr"

Sorry for the confusion.

Regards,

MG ( Go Gold! )

gor gold stocks??

Excuse my tardy response.
i was just up-dating
my patriotic credit-card/cash-advance balance-due,
on my borrowed dollars
invested in U.S. mutual funds.

Wave that patriotic dollar-flag all you want;
my family has spilt it share of blood for this country;
but this country, is not it's currency.

Thanks,
for the clarification, and others too.

No offense taken. Again, sorry for the confusion of names.
Someone seems to want to be sneaky.

When folks start comparing goldbugs to Tokyo Rose,
insinuating that allegiance to paper money = allegiance to one's country
I get pissed.

Glad it's cleared up.

Regards,

MG ( Go debt-based currencies?! NOT! Go Gold! )

I have been following this post for over a year and am beginning to wonder if ANYBODY can see into the future .This DOES not mean I do not appreciate all postings but sometimes WONDER. Also read all the GOLD pundits and the same thoughts pass through my mind .PLEASE KEEP POSTING .THIS IS A VERY VERY INTERESTING SIGHT.IN FACT THE BEST ON THE WEB,IN MY OPINION.

Thankyou All

President Clinton has been sopoeaned... ( how do you spell that word?? ) ...I'm sure he will tell the truth...getting down to "lowering the tailgate"...huh//

BJ now says I have become a merkin from spending too long in the cyber-space Pickle-Jar of kitco. Picking up merkin attitudes, she says. "Where did ya get that from? Does that mean I have to swear allegiance to some flag? I jest love cute traditions.

http://www.netxpress.com/users/e-cast/advance.htm

I hope that you don't think my comments were indecent. A little dark humour but not indecent or meant to offend anyone.

clone is present. Alive and well. -c

Sometimes.

 Russia intends to issue bonds backed by gold. The decision was taken at a meeting Friday chaired by Dep-uty Prime Minister Viktor Khristenko and attended by the heads of the Finance Ministry, the State Fund of Precious Metals and Stones, and the Central Bank. The bonds will be used to credit the country's gold-mining industry so that it can fulfill government contracts reached for 1998. The so-called gold certificates will be issued by the Finance Ministry.

Hot News
IMF to hold onto gold
A report by Dick Ware of the Center for Public Policy Studies of the World Gold Council, called IMF and Gold, says that the International Monetary Fund ( IMF ) , the world's second largest holder of gold reserves, is highly unlikely to sell a significant amount of its gold in the immediate future.
Ware says that although gold no longer has an official role within the international monetary system, the presence of gold on the IMF's balance sheet provides reassurance to countries whose currencies are used in fund lending operations.

The IMF currently holds 3,217 tons of gold, worth $31 billion at a price of $300 an oz. This is about 10% of the gold held in the official sector and around 2.5% of the total stock of gold worldwide.

The fund is no longer permitted to buy gold and its options, therefore, are limited to selling some or all of it or simply "sitting on it." There have been suggestions that the IMF should sell its gold, but they have failed, with limited exceptions, to gain the necessary support of the membership, since an 85% majority is needed for any sale of the fund's gold.

"It has remained the majority view that it is better for the fund to preserve its gold against unknown contingencies rather than sell it to invest the proceeds elsewhere," said Ware. "International monetary officials are often more comfortable if they have something tangible with which to confront any unforeseen crisis. Gold provides such real support."

"Certainly this moment, there is little prospect of the fund's membership, as reflected in the Board of Executive Directors, agreeing to an outright sale of the majority of the fund's gold. There are enough important members who hold gold in their national reserves - and see the good reasons for doing so - to prevent this happening," said Ware.

The fund is still considering the possibility to sell a small amount of the fund's gold - up to five million ounces - to help with the debt reduction plan for the world's poorest countries; and another proposal to sell up to three million ounces of gold to cover late or defaulting loan repayments to the fund's Enhanced Structural Adjustment Facility.

These potential sales have been agreed to in theory by the membership, but it is by no means certain that they will actually occur.

Gold is held by the fund at the old official price of SDR35 to the ounce ( $42.22 ) and is therefore a significantly undervalued asset on the fund's balance sheet, and consequently the fund's financial position is stronger than it appears. Gold adds a "fundamental strength" to the balance sheet which may be important in years to come.

"As has been seen frequently in recent years, the nature and extent of financial shocks are unknowable. Although they have tended to equate to problems in individual ( large ) countries, it is not beyond the bounds of possibility that in future they might involve the whole system. In such an instance, the fact that the fund owns gold could become an important factor in the equation."

"Difficult though it may be to forsee at the moment, who knows what a future international exchange rate system might comprise?" Ware asked.

Court TV
Bill Clinton's old girlfriend, Browning, may sue him Monday if he doesn't settle with her. This guy has more problems out there then the press is talking about.

ChinaGate - they will proceed with criminal contempt.
FileGate - is proceeding to trial.
MonicaGate - spreading to other issues.
Paula Jones - spin off problems
Drugs in the White House - Press Sec. resigns?

In the public interest, there are people going around Congress and Janet Reno, in an attenpt to get at the truth; and the press never talks of these legal proceedings ... but they are out there and they are real.

This stuff may all hit the fan at the same time - this fall, Clinton and the Republicans may not be able to hold all of this off till after the Novenber elections.

Clinton may fire Starr - Constitutional Crises?
add this to Japan, China, Rubin resignation and an over valued market and you have a rescipe for disaster.

How will Gold react in this environment?

HighRise

goldfevr, its like shooting ducks on a pond
stir the pot and look what comes up
Mountian Groat who pulled your chain
Kitco is for the investor of gold stocks ( gold bugs )
How can one make money?
goldfevr, ( the credit card investor ) he says, what a
joke
We read about him jumping off a building one day
I used to post on this sight months ago before goldfevr
started his song and dance routine

Went to see "Saving Private Ryan" this afternoon. Apart from the contrived feel of the premise, and the occasional wordy justifications sprinkled throughout, it is THE definitive war movie.

Those of you who have ever experienced weapons fired in anger, or close up tank fire, or the mad confusion that rains down with hot shrapnel when the shells are exploding all about, or maybe who wonder if they will freeze when things start getting noisy, well. The first thirty minutes of the film will put you right back in the thick of it and you can almost smell the cordite.

Not an easy film to watch

Huh uh

Is there an a-d line just for gold mining stocks?

It just came over the wire.......President Clinton has been served with a subphoena to testify in person ( no video tape this time ) before Judge Starr's grand jury.

Maybe the rumers of drug use in the oval office are true after all. The rats are starting to desert the ship.

forgive me this last indulgence

then ....
i promise to try my best to sign off ( -just for tonite ) ...

the whole essence of gold
is
truth
honesty
integrity
justice
liberty
independence
accountability
....

non-sectarian
non-national
non-currency
no-difference
than the universality
of all of humanity
...
one human family....

of
life

the whole essence of gold-based money
is that we may no longer find it necessary
to argue to such an extreme
that we would exploit, judge, condemn, fight and even kill
one another
over our imagined & exaggerated 'differences' ....

About this fundamental principle
there will eventually be an ushering - in
of choral union...
that this planet earth,
might at last
look beyond it's own
limiting frontiers...

And peace will rule our humble
magnificent
exquisitely earthly
domain....

once that
a world standard of money & credit
grounded in gold/silver specie

are adopted, surrendered to, endorsed...
by every nation, nationality,
and individual sovereign entity...

and with this unifying medium of exchange - of gold & silver
and
with this common denominator store of value of gold & silver

when at last, and at once ...
recognized, endorsed, embraced and surrendered to...

then, and only then,

will the peoples and nations of this world,
truley look upon their gardens, families, fields, factories,
enterprises.... and their evolution....

and join in unison
declaring

the greatest adventure
is just beginning....

the entire world - community
of beggars in breach-cloth
and behemoths in burgeoning board-rooms
and governing-elites

might
at last

surrender
to the humility
and honesty

of honest money
and credit
.....

that is all

that is all i want to say, for now

isn't.... 'that'

ever going to be enuf

( i love you all
even those of you,
i at times feel i do not love )

goldfevr, YOU ARE A TRUE NUT!

CYCLIST: ( or another with similar skills ) : What is the cycle for wheat? ...cycle low at hand?...or no... ( GOLDen grain, of course ) .

for table scraps ( and probably eatin' the turds your cat has buried ) , if you toss him a bone, he'll never leave.
Reminescent of "GETREAL"

It would really help me out if you could post URL's. I did not find Juniors "gold certificate" story on Interfax and I have not seen any word of Clinton's subpoena "over the wire." Thanks. -c

http://www.interfax-news.com/TodaysFSUNews/today.html

Here's a better one, it shows the adl on the same page as the the index. Makes it easy to see the ominous divergence:

http://www.decisionpoint.com/DailyCharts/ADCurrent.html

It's jus one of many chart including gold, silver, dollar index, xau, etc.:

http://www.decisionpoint.com/DailyCharts/DailyMenu.html

I don't know of any with advance decline line for just gold stocks.

Don't let any ignats bother you. Just use a little OFF. Small minds are worse than nats, but they can't get to a good mind, Charlie

Spreading like a huge black cloud over the nations of the world. Is this what the Kondrachii Scale called for? Forgive the spelling.

Please check my previous post. I addressed Billin Oregon incorrectly. Cheers. Jr.

All you goldfevr lovers please
Don't forget to take your medicine
tonight
I can't believe your statements
good day!

If I were a silver miner and was watching the inventories of the COMEX and saw the reaction of the marketplace the last couple months, then I think I would ship minimal silver off to the warehouses for sale and would keep as much as I could in my private warehouse for later sale. After all, the price does lok to be sensitive to the oz on the COMEX auctioneer's block. And if I were the rich guy ( s ) who recently purchased 26 mil oz the the slippery stuff through J. Aron of Goldman, Sachs and Co, wouldn't it be worth the expense of taking delivery and storing it just to watch the value soar as the numbers dwindled in the COMEX?

Thanks again.

Geeeeze louise, Harmony ( hgmcy ) does look swell. No sellers....just bidders. Could this be the best of the lot? Thanks to JD for this one.

You did a masterful job of portraying one of
the true heroes of the 20th Century, Auric
Goldfinger. The scurrilous lefties of
Hollywood unjustly tried to label you a
villain. We at Kitco are not fooled. Here is
the Great One Himself exercising his 2nd
Amendment rights. Go Goldfinger!
http://www.dur.ac.uk/~dcs3pjb/jb/images/gold
ss/goldx13.gif

http://www.dur.ac.uk/~dcs3pjb/jb/images/

STUDIO_R Namaste'...one of my favorite people...a most gracious Island that is Long GULP to you and yours...should the occasion arise that you might be in Huntington... go to Finnegans, on Wall Street...tell the BarTender you are my guest, even if I spelled the name wrong, they know my hatchet mark...Hmmmmmmmmmmmmm....STUDIO_R...

People like you enliven my reasons to never give up on America...

Uh O...off to play softball...yEEEEEEEEEEEEEEEEEEEEEEhAAAAAAAAAAAAAAAAAA!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

And of COURSE...A GULP OF TEQUILA TO YOU AND YOURS AND YOUR NEIGHBORS...

Love ya!!!!!!!!!!!!!!!!!

Y2k guru Gary North will be on the Art Bell radio program tonight midnight central time. He can be heard in most areas on am radio, but you can also hear it live over the net at http://ww2.broadcast.com/artbell/

No offense taken about the shooting on the Hill. I have to admit that I have a question that's been plaguing me since I heard about it...did this guy have the right address?

The Great Tolerant One.....Yes, you are a great and fine reason for web-wandering souls, like myself, to come each day to Kitco for nourishment.
Your large and generous spirit brings comfort to many...and, yes, you instill a truly rare trust in humanity.

I humbly accept your toast and beg that you join me and mine in an everlasting gulp and puff to KITCO.....Salud, amigo grande! studio.

StudioR.-- a note on Harmony, another likely acquisition.

http://www.bday.co.za/98/0723/company/e4.htm

xanadu - did you purposefully put that in your post?
Or did you just stumble on it.

"Tail" + "Gate"

Klinton's you know what will be caught when the tailgate slams shut!

the life you all seek for your love is found in open view of all and HONOR wears their name as a necklace...thus endeth the lesson...and even HONOR understands in her timely ignorance...the true Christmas ornaments are lit not by Man, but the well meaning gift...woman knows this and has pity upon us who sacrifice...

Off to the game, Republicans, Democrats, Mafia, FBI, and the rest of the clowns, I wear the nose and I am feared for my direct attitude...the rest is meaningless to me...hurt a child and I am the enemy...

Find the privilege within yourselves to care...

On a different wish I dream that you are all here...I shall take the children by storm and we will humiliate the adults...and the children shall understand that in English the Lawyers Whore Language that one word has two/too many meanings...

fat calves and thrumpiness...Uncle Kevan speaks the TRUTH...whatever that is...I love these KIDS... GULP TO YA...

No offense taken. Like I said, all kinds of one liners come to mind on this one, but I got friends on the hill ( I shouldn't admit that here, maybe ) and one was telling me he was just down that hallway this a.m. This Weston guy got a couple of innocents I do believe.

goldfevr, you are an artist!

be a long term investment or a mere trade? I will hold Harmony perhaps for a longer while, longer than the other RSA's....they obviously believe in the future of gold mining and their ability to compete in their chosen field. I like that. Thanks for the info.....Salud! to YA!!!!

I HATE it when handles are that close in spelling!
For a while over on K2 ( just before it was put out of our misery )
We had GETREAL posting stuff under OUR handles!
He/It can't do that here, but he/it can come close enough
to sow confusion and have us biting each other because we thought somebody took a swing at us but actually it was somebody else
who swung then ducked out of the way to watch the fight he started.

within four and seven I shall kneel on the Great Lawn, this is a place of contemplation............................at that time the tear shall roll off my cheek...and God's piano tuner will not allow me the strength to stand until my eyes return round to embrace the Sunrise...all my pupils shall only know GOLDand this then is your heart and message...

A MANIAC on the ISLAND that is LONG...stands on the shore...palms down...fire buring brightly in anticipation of meeting the Heartland of America's son...

The deaths of the laymen as the protruded of the media blames the perfect insane American.

we'd get along famously.
As to the Kitco 2 site, I personally miss it, it was a source of frequent amusement. Pierre and Swampboy got my giggle more than once.
Glad to have ya here, glad ta be here.
Take care, be aware
gb

I had to think a lot about your poem, which impressed me, and which I like as a poem as well as by it's content of financial market analysis.

Today I read in Investors Business Daily that the Chinese government has decided to privatize all the companies which are run by the Army. They are all not profitable and kept the door open for a specific kind of corruption. This is another big step towards transforming China into a capitalistic and entrepreneurial society.

I do not think that China is under any pressure to devalue their currency. This huge market doesn't depend so much on a cheap currency to promote export. My impression is, they need to export in order to buy high tech infrastructural investments in the Western countries. For this purpose, a devalued currency would be counterproductive.

may I suggest a 6 oz glass of Hurradurra chilled to about 45 f ?

Conservatives capitulate  again

17 JUL 98  At noon, July 15, effective Republican resistance to the global agenda of Bill Clinton, Madeleine Albright, Strobe
Talbott and Robert Rubin came to an end. The House leadership capitulated.

From Most Favored Nation trading privileges for Communist China to $18 billion in fresh funds for the global bailout agency, the
International Monetary Fund, Clinton's agenda seems assured. If the president does not get "fast track"  Congress' surrender of all
rights to amend his trade treaties  it will be only because Bill tells Newt not to push it.

Only weeks ago, when Speaker Gingrich broke with his party to sign onto the Clinton agenda, House Majority Leader Richard Armey
and Whip Tom DeLay broke ranks. "This was Newt's decision," said DeLay. "Armey and I disagreed." According to Roll Call
magazine, the majority leader and whip were suiting-up to defy the speaker and lead the back-bench conservative troops into glorious
battle.

The chances for a GOP victory, even with Newt on Clinton's team, were good. "IMF Has Rough Road in House  Conservatives Not
Sold on Speaker's Plan for Funding" ran Roll Call's headline. A battle royal was shaping up that would define both parties. The price
of a ringside ticket was rising fast.

But on July 15, Dick Armey carried a white flag over to the U.S. Chamber of Commerce. The leader who had been expected to head the
conservatives, in an Alamo-style finish if necessary, called it off.

The headline in The New York Times said it all: "GOP, In Switch, Backs More Funds to Shore Up IMF  Top Opponent Concedes
... Armey Recognizes Need." The Times said Armey had "virtually conceded the fight."

"In the end," said Armey, "I suppose they ( the IMF ) will get about as much money as they're looking for."

The depth of the capitulation may be seen in the exultation of the victors. Willard Workman, a vice president at the Chamber, said of
Armey's capitulation, "We're pleased to see he's coming to grips with reality." But what of Armey's plea that at least there should be an
opening of the books of an IMF that is shoveling out U.S. tax dollars by the scores of billions? Armey's idea is "stupid," said Workman
graciously.

After Armey conceded the battle was lost before it was fought, was the White House magnanimous in victory?

Not at all. Press Secretary Mike McCurry decided to give the Republicans an extra boot in the rump, even as they were trying to kowtow:
"It is time for this Congress to get serious and stop fooling around. This is just back to close-the-government time, you know, and they
play these games, and there is serious work to do."

As the Republicans have a majority in the House, why did not the leadership at least put up a fight? The answer is not a pretty one.

Republicans either do not believe in the convictions that they profess, or they lack the courage of those convictions. Ever since their rout
at the hands of Clinton in the budget battle of 1995, this House leadership has ducked every showdown Clinton has called.

What are the Republicans afraid of? Fundamentally, there are three deep-seated fears.

The first is that fear in the heart when Robert Rubin and Alan Greenspan arrive on the Hill to tell Republicans that if they do not pony up
every dime the IMF demands, the global financial system will collapse, Republicans will be blamed, and they will all share the fate of
Herbert Hoover Republicans.

The second is the fear of being defunded by the deep pockets of the Business Roundtable and U.S. Chamber of Commerce, whose
members provide the huge infusions of soft money that keep all those Republicans employed in party offices and D.C. think tanks and
finance all those Republican campaigns.

The third is fear of the lobbyists for agribusiness and the giant transnational corporations who have been telling Republicans that if U.S.
dollars don't continue pouring out to Asia, they will lose sales and profits, their stocks will fall, and the GOP will get a slammed door in
its face the next time it comes around to solicit.

In short, the House leadership today is torn between its base in the heartland, which deplores such One World institutions as the IMF,
and a Fortune 500 financial base, which guards the IMF as its insurance policy, its bailout window of last resort, and its guarantor that
today's halcyon days of the Global Economy will never end.

Take away the IMF, and you take away the security blanket of global capitalism. And these fellows will not give up their welfare without
a fight, a fight this House leadership does not want.


PAT BUCHANAN
Copyright 1998, Creators Syndicate

wanna let Jose C. do the heavy work for now.

But still has somewhere on the order of 2000 tonnes of Gold.
Pardon if someone else posted this thought...
But
If IMF is selling their Gold into the market to raise cash.
Could that be depressing Gold and Kitcoites' outlooks?

Some time back I viewed an old photo of Tony Mottola playing his ol' Epiphone box....I looked closely at his fingering of a chord of which I couldn't imagine the chromatic outcome...clueless. I grabbed my ol' Epi ( proudly made in 1946 in a small shop located on the Island that is Long....Yes! ) and made the chord. Ohmy! I have since created a song "around" this rare chord, titled "Saint Antonio" ( in reference to Antonio Carlos Jobim ) ....I will refer now and in the future to this chord as "kevan's chord". g&p.

defeat Herr Klinton's agenda in the House?

In a nutshell, check the roster of the C.F.R. and don't be surprised as to whose names you find there besides ol' billie jeff's. Netie's for one!!

The trilateral commission is also heavily larded with both breeds of socialists, be they dems or repubs.

Different wings of same party!

Study the veracity of this post and then answer your query by yourself!

Indeed!! Yowser!!!

Or in the alternative- attempt to prove I am as full of it as are the politicos you mention!

Junior, I read your 19:58 on IMF's Gold
"The IMF currently holds 3,217 tons of gold"
perhaps my last post shows the depth of my distrust in any
of these outfits - and perhaps my ignorance of IMF.
Maybe they can't sell it outright, but could they lease it?

Golden Cheesehead, re your post of 09:41
maybe not all the way down to $100 but
they could keep a lid on the POG moving up.

VERY SIGNIFICANT stock market comments today from Steve Kaplan re: weekly reversal in Dow.


COMMENTS OF THE DAY: Commodities closed slightly lower on Friday, while precious metals ended down across the board.
Gold fell $2.50, silver dropped 9.5 cents, platinum declined $2.40, and palladium slumped $6.75. As the stock market
continues its early bear market behavior, investors have not yet given serious consideration to alternative investments, though
there are very few that are currently both undervalued and liquid with the exception of gold. The XAU, an index of gold mining
shares, hit its lowest level since January 13, 1998, though remaining above its lowest levels of January 12. Bonds declined
moderately on Friday, and are unlikely to be able to rally significantly even in a flight to quality since they must retain a
minimal spread over the perceived rate of inflation. Meanwhile, the Dow Jones Industrial Average hit a new all-time high
during the week before ending with a sharp loss compared with last Friday's value. This is known as a weekly key reversal,
and has happened very few times this century. Each previous occasion led to a moderate stock market correction ( "moderate"
here means averaging between 20% and 25%, which is normal stock market volatility ) .

That Tequila you speak of, made in Mexico,,,,,,,, Quality control very bad,,drank a spoiled bottle once,,drunk 5 minutes,,,,sick three days.

Alberich: I like your spin on what is happening in China better than my spin. I hope you are right, and that I am wrong. Part of what worries me is that the 600 billion debt in the SOES has not been addressed. It is very hard to tell what is happening, and what their motives are. And there is the matter of their boom/bust cycle. I will reserve judgement for now.
I respect the Chinese people -- much culture there. But I definitely do not trust the Communist Chinese government. I think their testing of ICBM motors while WJC is there shows just how important it is to have a strong stand with them on a number of items such as human rights. If our leaders have a strong stand, the Communists will respect them. That benefits the Chinese people who must live under Communism, as well as the rest of the world.

in my part of the country...
"The Bullsh!t stops...when the tailgate drops"...kinda nice saying and a good pun too!!

uh..go gold and silver...

All: I don't know what to make of this. Is this grandstanding by Kenneth Starr, or does he have something that proves WJC plagiarized himself? I don't know, but this certainly is news!

http://www.drudgereport.com/

1.- The MONETARY MASS is never DESTROYED. CONTINUALLY IT IS RECYCLED.

2.- WITH THE PASSING TIME THE MONETARY MASS INCREASES DIRECTLY IN PROPORTION WITH THE
TIME, OR FASTER AT TIMES.

3.- The MONETARY MASS THAT REPRESENTS PAST GOODS AND PRESENT AND GOVERNMENTS WASTES, GET
ACCUMULATED IN CENTERS OF RICHES ACCUMULATION LIKE

BANKS,
GOVERNMENTS WITH POSITIVE BALANCES OF PAYMENTS,
COMPANIES OR PRIVATE INDIVIDUALS

4.- THE HOARDING OF MONETARY MASS , PRODUCES AN EXCESS IN THE
HOARDING CENTERS WITH THE TIME, PRODUCING NEED TO INDUCE LOANS, THAT WITH THE PASSING
TIME AND THE INCREASE OF THE MONETARY MASS, PRODUCES AN INCREMENT OF THE RISKS TAKEN AT
GIVING LOANS, THIS IS, EASY LOANS OR JUNK BOND LOANS.

5.- THE EASY LOANS, INDUCE IRRESPONSIBILITY ON THE PART OF THE BENEFICIARY OF LOANS.

6.-THIS RECYCLING OF THE MONEY IN DE FORM LOANS PRODUCE BESIDES AN APPARENT PROSPERITY.

7.- THE LOANS, SHOULD PRODUCE AN INCREASE OF THE MASS OF WEALTH CONCENTRATED BASED ON
LOANS BESIDES INCREASING THE MONETARY MASS, AND

8.- The INCREASE IN THE CONCENTRATION DE THE LIQUID MASS PRODUCES A
ACUTE INCREASES IN THE LOANS AND THIS IS A VICIOUS CIRCLE.

9.- THE INCREASE OF THE INTERESTS FROM THE GOVERNMENTS CENTRAL BANKS IN ORDER TO CONTAIN
THE INFLATION PRODUCED BY INCREASES IN THE MONETARY MASS MANY TIMES BY IRRESPONSIBLE
GOVERNMENTS, PRODUCES A WITHHOLDINGS OF THE LIQUIDITY, THAT DOES NOT EXPAND INTO GOODS
PURCHASING AND IN PRODUCING WIDESPREAD EVEN INFLATION, BUT RATHER STAYS RETAINED BY
THESE SECURITY DIKES.

10.- THESE DIKES MAKE WORSEN THE NECESSITY TO LEND THE MONEY AND OF COLLECTING TAXES
FROM THE DEBTORS, WHO ARE OBLIGED TO PRODUCE FOR DIMINISHING THEIR DEBTS AND MAKING
THEIR PAYMENTS ON TIME.

11.- THIS PREVIOUS PHENOMENON , PRODUCES A FEIGNED INFLATION, THE INCREASE OF THE PRICES ARE
IN THE HIGH INTERESTS OF THE WIDELY USED DEBTS. INDEBTEDNESS IS PROMOTED, THE PRICES
INCREASES ARE MASKED IN THE INTERESTS AND BESIDES THERE IS A REAL BUT VERY SELECTIVE
INFLATION ON THE FINANCIAL VALUES, MODERATE OR NOT, AND AN APPARENT PROSPERITY.

12.- THE LOST OF THE BALANCE TAKES PLACE WITH THE CONTINUOS INCREASES OF THE DEBT, WHEN
THE DEBTORS COULD NO LONGER PAY THE TAXES FROM THE DEBT THAT ARE THE INTERESTS AND THEY
CAN NO LONGER BUY AS CANNOT GET MORE INDEBTED . THE ALREADY SURPASSED THEIR LIMIT THEIR
VITAL NEEDS AND THE LIMITS OF THEIR FINANCIAL CAPABILITIES.

13.- THE COLLAPSE ARISES WHEN BUYING STOPS WITH MORE DEBTS. THEN, THE DEFAULT OF
PAYMENTS ARISES, AND THE RUIN OF THE DEBTORS AND THE CREDITORS.

14.- THE INTERVENTION OF THE INTERNATIONAL MONETARY FUND, AND THE GOVERNMENTS OF THE
RICHER COUNTRIES , WHEN THEY SOLVE THE PROBLEMS OF THE DEBTS, THEY DO IT THROUGH
CREATING MORE INDEBTEDNESS, OR PROLONGING ITS REPAYMENT . THEIR ACTIONS ARE NO SOLUTION,
THEY ONLY GIVE TIME TO THE COLLAPSE TO HAPPENS FURTHER AHEAD, AND POSSIBLY WORSE.

15.- THE SOLUTION OF THE PROBLEM IS THE GRADUAL DESTRUCTION OF THE LIQUIDITY THAT
REPRESENTS PRODUCED GOODS AND FIAT GOVERNMENTS MONEY CREATED TO INDUCE DEMAND OF
GOODS AND OTHER POLITICAL REASONS CAN BE ACHIEVED THROUGH ALLOWING GRADUAL INFLATION
AND GRADUAL REDISTRIBUTION OF THE CONCENTRATED LIQUIDITY OR HIGHER COLLECTION AND
HOARDING OF TAXES TO THE RICHEST, SO THAT THE EXPLOSIVE DESTRUCTION OF THE LIQUIDITY
MONEY DOES NOT HAPPENS THROUGH THE COLLAPSE OF THE DEBTORS And CREDITORS AND THE
DESTRUCTION BY INFLATION THAT WILL FOLLOW INTENTIONALLY, TO SAVE THE ENTERPRISES OF THE
COUNTRY.

16.- THE EXPLOSIVE DESTRUCTION TAKES PLACE AT FIRST WITH A GRADUAL COLLAPSE, AS THE
INCREASING DEBTS ARE ABOVE THE COLLECTIVE NEEDS AND THE COLLECTIVE REPAYMENT CAPACITY.
AT THE CRACK OF THE DEBT SYSTEM, THE FLOW OF MONEY DIMINISHES FROM THE INDEBTED AS
THERE IS A CHANGE , A DECREASED NEEDS OF THE CONSUMERS OF GOODS, THAT IS THE WHOLE
POPULATION, AS NO LONGER IS ABLE TO MORE INDEBTEDNESS. THAT ON THE OTHER HAND STOPS THE
FLOW OF MONEY FROM THE CREDITORS. THE DESTRUCTIVE EFFECT INCREASES GEOMETRICALLY AND
IS EQUAL TO AN EXPLOSION WITH GREAT OR MINOR DAMAGE, DEPENDING ON THE SPEED IT HAPPENS.
THE NEW TECHNOLOGIES MAKES THE SPEED RATHER FASTER THAN SLOWER.

17.- THE CENTERS WHERE LIQUIDITY ACCUMULATES, NOT TRUSTING WHERE TO
DEPOSITING THEIR WEALTH , THEY JUMP TO THE TANGIBLE GOODS TO PRESERVE IT AND THEY
PRODUCE OTHER KIND OF SELECTIVE INFLATION INTO OTHER KINDS OF GOODS THAT HAVE SIMILAR
PROPERTIES TO THEIR CASH THEY TRY TO PROTECT: ANOTHER CURRENCIES, PRECIOUS METALS,
COMMODITIES , REALTY ALL OF WHICH FALL FIRST AS THE PROCESS OF DESTRUCTION OF THE
LIQUIDITY IS GRADUAL AT THE BEGINNING OR WHEN IT HAS JUST STARTED , OR FOR EXAMPLE WHEN
THE IMF OR OTHER GOVERNMENTS INTERVENE IN ORDER TO SOFTEN THE PROCESS.

CONCLUSION

THE LOGIC IS THAT IT IS NECESSARY TO BE READY AHEAD TO THE FACTS. AND KEEP THE CASH AS IT IS.
AS THE PRICE OF COMMODITIES COLLAPSES HAPPENS, INVEST THE LIQUID CASH IN GOODS THAT ARE
HARD AND REAL, THAT ARE SIMILAR TO CASH. SAY COMMODITIES THAT ARE USEFUL IN THE MODERN
ECONOMY, THAT ARE EASILY TRANSLATED INTO LOCAL CASH. EASY CONVERTIBLE, THAT CAN BE
FRACTIONATED , AND THAT DO NOT DETERIORATE.

??

No doubt..........he has been in Tolerants tequila,,,,,,,,

Prudent: I think this is the one with many names.

Depression. Buy hard assets.

All: Allen Spector threatens to take Janet Reno to court if she faile to appoint another special prosecutor.
http://www.washtimes.com/index.html

When the late news printed Gold $US 249.40 an ounce by mistake instead of $US294.40.

But then again, maybe its an omen.

Live Long and Prosper.

The result of a frustrated goldbug out to kill Clinton and/or Greenspan??

Live Long and Prosper.

for appointing independent counsel to review 1996 Democratic presidential campaign finance. And -- Janet Reno is his boss. Getting interesting.

At once the fuel of the Industrial Age flows with the fuel of the Information Age. Thus, the world's richest men: Sultan of Brunei and Bill Gates. But who becomes richer when the dollar falls?

"Oil is so cheap" we say.

When you travel you see that this is true only in dollars.

-EJ

blooper: I like your idea -- use gold as an anchor to prevent cyclical behavior. Does this focus work with both economies and individuals?

Hey! EJ! How goes it? Don't forgrt ol' W. Buffet in your list of world's wealthiest.

Say, did you see my silver rally?

The end of the week.
The markets are done, asleep.
Some quiet peace, we seek.

Clinton but kisser. Waco child incinerator. Ugly enough to stop a clock.

alexism:
your statement of non-destruction is contradicted in subsequent steps, but I say this not in criticism, but only to reiterate a theme I have often returned to, namely, that capital is destroyed ultimately, particularly if capital is invested in "virtual goods and services", which are paper or floating assets that can change quickly and even be vaporized. This concept is validated repeatedly in world markets, where crashes in various asset classes cause this to happen. Your last statements about commodities, i.e., hard goods or assets is correct, in that they cannot really vaporize as can those "virtual" assets. The credit cycle you describe I believe is excellent.

azau

Not my idea. Simply translating psycobabble. That was the jist of all that babble. He could be right. Hope not. Anyway, but out.

I had a few friends who survived the last great depression,they scrimped and saved waiting for the next depression ...When they died they were worth millons..The next great depression never came......They spent there whole life living worse than the poor people....But they were prepared.
( one of my observasions of life )

That was really insightful.

Just another dark cloud haging over a fair gold price.

Face it, the IMF is the prime supporter of fiat, the hack of its US/European promoters, the supporters of the NEW WORLD TULIP ORDER. both you and your posterity are/will pay dearly to keep this beast alive.

Best that the member nation citizenry petition to have its gold reserves returned to whence it came.

All: I'd like your opinions. Why would Kenneth Starr subpoena WJC to come in person in front of the grand jury? He did not do this the last time WJC testified. My guess is that KS knows WJC will not come. So -- we might have a constitutional crisis that could lead to impeachment proceedings. Or -- WJC makes a deal of some kind with Kenneth Starr, and KS backs off. Wonder what that deal might be.
The forces gathering around Janet Reno are increasing -- she is a major inhibitor of a number of xxxgate investigations. First the Chief Justice of the Supreme court will not give her the time of day -- last week. Second, Arlen Spector threatens to go to court to override her position on the campaign finance independent counsel bit. Third the director of the FBI goes against her as well. Fourth, McCurry resigns and says he will never do public relations work again, after 22 years of doing it. Maybe Bill Marr is right -- could be McCurry is tired of lying.

If Janet Reno does not back down this weekend she is probably history.

I suspect more and more that something is up in Washington DC -- perhaps some key people there know already that WJC is in big time trouble. Perhaps that is the real reason for the market island reversal. All this is by inference, but there is too much going on all at once, IMHO.

Maybe we are so sorry in this country which God is about to forsake, that a doste of reality might be just what we spoiled brats need. We who prosper at the expense of others and disrespect both ourselves and God.

blooper: I was referring to our cyclical poster. Sorry about the miscommunication.

10-4. We underestimate Asia. Big time. No depression, but a recession that will take care of Clinton, and concern us all. Own no stocks unless you trade well.

here is the Boy:"Kondratiev"

http://pascal.iseg.utl.pt/~flouc/hope.html

S.--good night!

Is that we are becoming too decadent. Financial problems are transient.

Transcient.