October 21, 1999. The Euro Area: A New Monetary Colossus
...." The 11 nations of the Euro Area have a total population of 290 million and a combined annual GDP of almost $7 trillion, comparing quite favorably in size to the United States with a population of 270 million and a GDP of $8.5 trillion. Impressive as these numbers are, they pale beside the monetary numbers. Source: IMF, International Financial Statistics, October 1999 (most figures for end of June 1999)" ......
..." With over 400 million ounces (12,560 metric tons) of gold reserves, the EA has almost 1.4 ounces per person compared to 262 million ounces (8150 tons) equating to just under 1 ounce per person for the U. S. More importantly, with the equivalent of around $1350 of cash currency per person in circulation compared to more than $2000 for each American, the EA could provide a 40% gold cover for its currency outstanding (i.e., the combined total of all 11 national currencies outstanding) at less than $400/oz. The U. S., as I have noted before, would need a gold price in excess of $800/oz. to do the same thing. Total U. S. foreign exchange reserves are some $30 billion; those of the EA over $220 billion. And with a 1998 balance of payments surplus in excess of $120 billion, the EA is running trade surpluses almost as large as U. S. trade deficits.".....
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