On 15 Jan 2002, at 13:32, Craig Spencer wrote: > > The Euro has already 15% of its reserve in gold. > What does that mean?
Well I meant that the ECB at 15% of its foreign reserves in gold. > > Although the Euro is not convertible to gold, it gives some > > sort of stability and solidity to the currency. > Of what use is that? It sounds like OSGold. Well at least it raise the confidence of Europeans and foreign central banks (like China) who are considering the Euro as a component of their reserves. But I agree, it is still fiat currency. > > The issue here is what arguments the ECB can use when it comes to > > the table with the USA to decide on the equilibrium of the USD and > > the Euro as world reserves currencies. Gold is one argument. > > You seem to think that the usage and/or relative value will be > determined by political fiat. Well. Yes. Why do you think that the US and Europe are having a series og major meetings starting next july. Europe wants's to share the benefit of having a reserve currency. > As long as people have any choice that will not be the case; > both will be determined by market > forces. I agree. But it is a political decision that will lead these forces. WHat if the ECB decides to make the Euro convertible? WHat if they increase to 40% and start selling more USD reserves. Claude --- You are currently subscribed to e-gold-list as: [email protected] To unsubscribe send a blank email to [EMAIL PROTECTED] Use e-gold's Secure Randomized Keyboard (SRK) when accessing your e-gold account(s) via the web and shopping cart interfaces to help thwart keystroke loggers and common viruses.
