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Strategies & Market Trends : Asia Forum -- Ignore unavailable to you. Want to Upgrade?

To: Frodo Baxter who wrote (4291)	6/9/1998 9:01:00 AM
From: Mark Myword	Read Replies (3) \| Respond to of 9980

>> I'm not a gold bug, but considering how currencies have tended to be mismanaged more often than not, I find the idea that backing up a currency with a real store of value has definite advantages. We ain't gonna return to the gold standard, that's for sure, but how about some dollar diplomacy?<< Lawrence - you seem to be an astute observer of economics and international econopolitics. I am interested in your view of the necessity for the Europeans to back the soon-to-be Euro with a gold reserve of fairly sizable proportions , at least at the outset. My feeling is that during the first 3 to 5 years , there is a need for a lot of stability or the Euro may be a flop. Stability would be a result of both a gold backing and appropriate fiscal policies in the member nations. After the initial phase , and once a comfort level is established , the gold on deposit will be less of an issue , and can be gradually reduced. Until then , however , I do not see large central bank gold sales as a looming threat in the near future. Any thoughts ? Thanks