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To: jjs_ynot who wrote (28397)	10/5/1999 9:04:00 AM
From: Les H	Respond to of 99985

They're holding back on gold so that the IMF can fund the debt relief. Otherwise, the US and other countries would have to cough up more money directly and expend political resources to get these appropriations through the legislative organizations. They don't require a congressional vote to lift the price of gold.

To: jjs_ynot who wrote (28397)	10/5/1999 12:12:00 PM
From: Hawkmoon	Respond to of 99985

How does the very contrived statments by the Europeans that they will not sell gold fall into this viewpoint? The only take I can spin on it is that it was an attack on the dollar as the global reserve currency. Since the Euro is backed by between 20-30% gold (depending on who one asks), they might believe it will strengthen their pummeled metaphysical currency. There is a big difference between nations pegging their currency to another global currency as some countries have opted to do with the US dollar, and taking 11 nations and lumping together their diverse political and economic cultures and pegging them against some electronic monetary standard (there are no Euro notes or coins). The dollar represents the political, military, and economic power of the United States and its value reflects that power. To try and use gold, or some other contrivance, that attempts to create an artificial respect for the Euro, a currency lacking any unified representation of Europe as a whole, is likely doomed to failure. Either that, or the punishment they inflict on their own economy will later seem hardly worth the effort. Europe is trying to create a confederation through binding disparate nations together with a single currency. That is why, no matter how much it hurts their export economies, they seem hell-bent on keeping the Euro overvalued. The Euro's strength is the only reflection of the strength of the EEC, whose existence is constantly under attack by those nationist interests who like their independence. Just my opinion. Regards, Ron