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Politics : Dutch Central Bank Sale Announcement Imminent? -- Ignore unavailable to you. Want to Upgrade?

To: sea_urchin who wrote (14594)	6/29/2002 6:18:46 PM
From: Alan Whirlwind	Read Replies (2) \| Respond to of 82344

Just curious...why doesn't SA back its currency with gold. Their currency outstanding can't be too burdensome and they have the gold reserves to draw from. I know, the US hasn't done it for years. Seems everyone is tempted to inflate while at the same time shouting from the housetops that inflation rates are low. In any event, an interesting circumstance to point out is that when the US last backed its currency with gold during the early '70's, nobody wanted the US dollar because they felt that gold was a better safe haven and dollars were converted to gold to such an extent that Nixon cut off the gold backing entirely. Now the dollar is yet king even though we don't even back it with crap. (My prediction...dollar at 100 is critical. Psychologically, a drop below parity with Euro will be a catalyst and could trigger a significant burst in POG.)