GOLD & the EMU.
"Some might argue that the European countries entering EMU are merely del-egating their monetary powers and can take them back at any time if they wish to. Other might counter that this argument verges on sophistry, not least because if the market regarded EMU as reversible, the euro would hardly be an attractive currency. What is the reality? International treaties such as the Treaty of Rome and Maastricht lack provision for signatories to reclaim powers given to European institutions"
This suggests that once on the road to the EMU, a full Federalist country will be born, and be FORCED to work. {AKA: A Homer Simpson: Succeeding by failing} With this in mind, the degree of centralization and commitment, by each individual state, will only grow as the monetary policies will seem to mitigate growth over the regions.
"What will keep European countries in the EU will be a political, economic and social calculation of the benefits and costs of breaking away. The greater the degree of integration, the more costly a divorce would be."
And with a EMU that must succeed, leads to this:
"Moving to EMU means giving up this policy instrument, and is likely to involve a cost. The principal form that this cost will take is in being unable to lower or raise interest rates independently of other
countries when domestic conditions require it; this situation will occur when the domestic economy goes into a recession or inflationary boom not shared by other countries in the EMU zone."
Therefore, The EMU will set the yield rates on ALL countries. But some areas such as Italy may be in a infaltionary trend, while others such as Germany may be in a deflationary trend... With this in mind, you'll have a transient workforce, and thus you WILL NEED to lower all borders to allow the free flow of a workforce to and from areas of growth. And in essence you are ONE country. And while being one country, all assets will become common. And thus GOLD holding of each nation will be transferred into the EMU central control. And with it all fiscal policies too. And the EMU has decided upon 10%-15% in gold holdings.
"The chief lesson of the EMS crisis of 1992-93 is that fixed exchange rates are sustainable only if monetary sovereignty is pooled—and the purest form of pooling is to create a single money-issuing authority."
And with that in mind, each individual country will not beable to hold GOLD, as that would interfere with the mandate of the EMU.
NM Rothschild {same people you quote?}
eiu.com |
