Burn, Wall Street, Burn!

Patrick Bond pbond at wn.apc.org
Tue Sep 1 16:04:25 PDT 1998

Doug, a couple of weeks ago I asked on this list (I think) what folk thought would happen to the gold price in the context of intense financial volatility. No takers.

So if gold is so low, and if in the 1930s South Africa grew by its fastest rate ever thanks to gold -- earning itself the moniker "prosperous undertaker during the plague" -- and if, in coming months perhaps, interest rates have to come down in a general deflationary process hence lessening the attractiveness of paper assets... then can't my comrades in the National Union of Mineworkers begin upping their wage demands with confidence?

> Date: Tue, 1 Sep 1998 13:07:06 -0400
> From: Doug Henwood <dhenwood at panix.com>
> ... I dropped in at Harry's around 6 (Harry's is an old-style Wall
> Street bar) and there was hardly anyone there. My hard luck was to stand
> next to a trio of gold traders, who were convinced their day was here, even
> though dollar gold prices are at their lowest real levels since the early
> 1970s. (When FDR fixed the gold price at $35/oz, it was worth $427 in 1998
> dollars; yesterday's London PM fixing was $273.) The stox guys that were
> there (all but one of them male) didn't want to talk about the market; they
> just wanted to drink beer and nibble on chicken parts.
> Doug

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