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Posted on 07/09/2011 5:21:30 PM PDT by DeaconBenjamin
Edited on 07/09/2011 5:23:32 PM PDT by Admin Moderator. [history]
The Swiss Parliament is expected later this year to discuss the creation of a gold franc
(Excerpt) Read more at marketwatch.com ...
The EU would be furious to see the Swiss show them up with a truly stable currency.
I have heard this predicted: a return to the gold standard would have been laughable a few years, or even a few months ago. Now it appears to be gaining credibility
How about gold bullets for Swiss guns?
There is an idea, now called “Freegold” that one way out of the Euro debt crisis would be for the ECB to monetize its gold holdings into a gold-backed currency. Advocates of this idea speculate that based on the monetary base of the ECB and the amount of gold it could use for this purpose, such a currency would imply a value of 30-50,000 Euros per troy ounce of gold.
If the ECB did this, it would instantly become the currency of choice for financial transactions. Why do long-term business in a currency that is fiat, when it could be done in gold just as easily. It would also be a conversion that could pay off the massive Euro-debts, even though it would be a one-time fix.
see also: http://fofoa.blogspot.com/2011/01/freegold-foundations.html
I could not imagine gold selling for that, inflation would be rampant. Zimbabwe II
Looks more like the plastic standard to me...
Prior to the present generation of Federal Reserve Notes, US paper currency was convertible to silver. That is, you could walk into any bank, present a $1 bill and exchange it for coins that contained 90% silver. So the dollar was directly convertible into silver.
In the case of converting the present fiat currency into one that is convertible to gold, the calculation is simple: divide the monetary base by the amount of gold held by the government that issued the currency. It comes out to numbers in that ballpark. This is true of the US as well.
If your theory comes about, today’s purchase of Gold would be the bargain of the century.
For further information and very thorough explanation of freegold, keep a watch on the FOFOA blog site: http://fofoa.blogspot.com/
Today’s edition directly relates to Euro gold reserves.
It would IF G-20 permits private gold transactions after remonetization.
This is, in my view, quite unlikely.
Yes, you will still be able to fly to Thailand and exchange your gold for bhat, confiscation is SO 1930s.
But when gold is remonetized, as it will inevitably be, "profiteers" will be lucky if they are not shot.
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