>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.
If the volatility has a deflationary bias, gold should continue to sink, no? And bonds rise?
>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?
Why did gold do well for SA in the 1930s? A fixed price in a deflationary world?
Doug