This morning, on Bloomberg TV, came out a question I had known of, but had not considered for years or in relation to the Euro. The older people of Europe have kept (at times a great deal) of savings at home
- under the mattress money. Those from Europe I've known chose
D Marks, US$, S. Francs for this purpose(mostly U.S.$). The way I figure it, Some of that will become gold, and if it does not, gold will still win, as if these funds are spent or deposited to the banking system, putting more M-1 into float.
After all, the cash currency part of M-1 is the true mover of inflation correct? |
