In a world of floating currencies, central banks don’t need gold or other reserves to determine the currency’s value. In that world, central banks neither need gold reserves to give at least some value to “their” currency which is floating on … thin air.

Gold will soon have the same role to fulfil as the Mona Lisa in the Louvre. A wealth reserve in the strong room (the Louvre) of a Monetary Union with a currency, the (East) Asian currency.

Asia will force the floating currency regime to ask the Mona Lisa’s (FreeGold’s) help to survive.  

Russia had plans to sell between 20 and 50 tonnes of its Mona Lisa this year to keep “its” ruble floating on thin air. No way, says Asia! (1)

As former Malaysian prime minister Tun Dr Mahathir Mohamad was quoted on Tuesday in the New Straits Times in an article “Asian Community: It’s time to act on currency plan”: the crisis is due to the US monetary system which is not backed by anything; therefore Japanese new prime minister Yukio Hatoyama’s call for Asia to set up its own currency should be welcomed and the currency should be backed by gold. (2)

See you 09 November 2009, 20 years after the day the Berlin Wall “fell”.

Ivo Cerckel
honestmoney@maktoob.com
http://twitter.com/ivocerckel/

NOTES

(1)
From Times Online October 27, 2009
Leak forces Russia to scrap gold sale
http://business.timesonline.co.uk/tol/business/industry_sectors/natural_resources/article6891819.ece

(2)
ASIAN COMMUNITY: It’s time to act on currency plan
2009/10/27
http://www.nst.com.my/Current_News/NST/articles/20091027085830/Article/index_html