On 16 Jan 2002, at 0:42, SnowDog wrote: > > What I am saying is that if you add gold to these reserves, even if > I don't think so. Let's say that the Euro is backed by 15% of its > value in gold. Then, if you started to inflate the Euro, the price of > gold would go up, and it would still be backed by 15% of its value in > gold -- not matter how many Euros you printed.
If the USD is an example, we cannot conclude what you say. The USD has been inflated exponentially over the last 10 years. But the USD has been very stable (to the upside) with gold price going down. Snowdog, I think you are are right but only over the very long term. Only a true gold standard can insure the long term stability of the currency. But I was mentioning this short/intermediate term stability effect in the context of coming negotiations between the USA and Europe. I relalize that there doesn't seem to be any stability in the Euro since it was introduce two years ago. But that is more a USD problem than a Euro problem I think. With the ECB having 15% of its reserve in gold and the possibility to first increase these gold reserves and two make the Euro partly redeemable in gold, they increase global confidence in this currency, and therefore, I think stability. --- 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.
