On 15 Jan 2002, at 17:31, Craig Spencer wrote: > But what does that mean? What are foreign reserves? Since it is not > redemable in anything what good are these "reserves"? If someone > said I won't promise to give you anything for your car but I've got a > lot of money would you give them your keys?
I agree with you. That is how I would like my central bank to be. I.E being able to change my paper against tangibles. But in today fiat system, central banks foreign reserves exist only to show other countries that the local currency can be surpported if needed by market intervention. The larger are one central bank's reserves, the better it. That's all there is to it. What I am saying is that if you add gold to these reserves, even if the currency cannot be redeemed, you also add some sort of long term stability. > This is crazy! Such reserves are utterly meaningless. I agree it is crazy for The Chinese or Japan (or any other central bank for that matter) to have hundred of billions of USD or Euros, or yen in foreign reserves. They would be better of with gold. > Perhaps it does. But why? What are they thinking? Groups cannot think. Only individuals. That is why Central banks can easily foll the people with their fiat system. > > Europe wants's to share the benefit of having a reserve currency. > No doubt. It is a license to steal. But it's not "use as a > reserve" that is so enviable but enjoying a worldwide > circulation. Isn't it exactly because a currency is a reserve currency that it starts to circulate worlwide. What other currencies circulate worlwide but the USD. The fact that other central banks accept and keep as reserves the USDs is probably the main reason why the foreigners accept the USD as an equivalent to the local currency. By floating worldwide non-Americans are fooled > into giving REAL value to the printers of greenbacks in > exchange for NOTHING. Maybe. But the USA and Americans are fooling other countries in giving them greenbacks in exchnage for imported goods. This raise the standard of living of Americans. That is what Europe want: to export the Euro as a reserve currency through trade deficits and import goods to Europe increasing the whealth of their citizens. Fiat cuurency.. against... imported goods: --> good deal. > However, the competition would > not only end the "benefits" of the US dollar's worldwide float > it would also prevent the Euro from gaining those > benefits. I think that the benefits (which are now for the US only) will be shared with Europe. That is the deal Europeans will be looking for this summer. > Perhaps, realizing this, they are scheming to > establish a cartel which divides up the loot. Exactly. > Perhaps it > is not exchange rates or usage they aim to fix but to establish > an OPEC of money. This would require them to coordinate their > issue in a joint way so that there is NO competition between > the Dollar and the Euro. That is what I think as well. 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.
