> 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.
Unfortunately, I don't think they'll ever be able to allow partial redemption in gold. It's the same problem the US faced in the 1930s and 1960s: you can't build an elastic currency on top of an inelastic currency. The whole purpose of having a fiat currency is so that the central banks can increase the money supply, without regard to its backing, from time to time, when they think that their economy requires an infusion of capital. Inflation is an inherent part of these types of currencies, and if they allowed any kind of redemption, they will then periodically be required to devalue their currency, from time to time. SnowDog --- 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.
