Posted on 07/23/2002 10:50:06 AM PDT by Lazamataz
Gold has sharply dropped this afternoon, losing 11.00 dollars per ounce as of 1:43PM EST. The loss amounted to more than 3% of overall value of the commodity.
Normally considered a 'refuge investment', gold has gained in value while individuals try to find a place to keep their money in the face of a foundering stock market. While this has led to a run up in prices, there are risks of sharp losses in value, as has occured today.
It is not yet clear what has caused this dropoff in gold prices.
Yesterday, Secretary Paul O'Neill testified before the Financial Services Committee on the state of the international economy and the performance of the IMF and World Bank. Congressman Paul asked Secretary O'Neill what he thought of the Monetary Freedom and Accountability Act (HR 3732). Secretary O'Neill said he believed the administration needed the flexibility to deal with changes in the international economic system and would oppose anything that reduces the administration's "flexibility."
Congressmen Paul's Monetary Freedom and Accountability Act is not about taking flexibility away from the administration. It only requires the President and Treasury Secretary to be transparent in any gold dealings and that they receive permission from Congress should they choose to deal in the gold market. The President and Treasury Secretary share responsibility for the Exchange Stabilization Fund (ESF). The Gold Anti-Trust Action Committee has evidence that this fund is dealing in gold. Yet, in a memo to Alan Greenspan on June 8, 2001, Virgil Mattingly says:
"With respect to activities of the ESF, I note that the Treasury Department stated in a recent filing that the ESF has not held any gold since 1978."
If that is the case, why should O'Neill object to Ron Paul's Monetary Freedom and Accountability Act? Why should he care in any way, shape, or form? If the President and Treasury Secretary decided to mobilize the gold of American citizens, what is wrong with requesting permission from Congress to do so? Would not the founders of our country have wanted as much?
O'Neill is holding back and hiding the real truth about the Treasury and ESF gold operations. It is only a matter of time before he gets nailed, before some member of Congress asks him about GATA's evidence of Treasury gold dealings.
Sure! Folks arming themselves with cash for the opening bell at the stock market tomorrow.
I hope none of these.
The submarine races!
I spent many an exciting evening on the banks of the Charles, watchin' the sub races.
Duh! How could I forget the submarine races!
The best part was always the sub pulling (or was that pushing ;-) into port.
It certainly seems like a good time to invest in stocks. I mean, huge companies like Nortel Networks (NT) are selling at $1.12 a share. How much lower can it go?
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