If the euro does fail, gold will become the “world oil currency”.
 
We do know this full well, “the Central Banks will horde all gold and buy any offered if this new European currency does not work” and “debt currencies fail”. If this does comes, no paper asset of world economic system will survive, nothing! Not a good thought, no? (1)
 
Hence, Abu Dhabi’s Emirates Palace Hotel on Wednesday unveiled the United Arab Emirates’ first ATM-type machine that gives those staying there the chance to withdraw 24-karat gold bars and coins. (2)

Gold is money.
 
Hence, now you can withdraw ingots from an ATM (3)
 
http://fofoa.blogspot.com/2010/05/hair-of-dog.html 
SNIP
FOFOA said…
As you all know, I don’t expect the euro to fail. The euro is designed for transition. It is designed for Freegold. And the specific value of a currency doesn’t matter in its primary role as a medium of exchange. Only stability matters, and the euro could handle a big one-time devaluation to a more stable level. It will have to devalue at one point or another. Devaluation is inevitable for all fiat currencies today. The European politicians apparently understand less about this than the central bankers do.
Even still, exiting the euro would be a Herculean task for any country. They’d have to reissue currency and re-denominate all long term private contracts, and then face the old risks of war and hyperinflation once again. For this and other reasons I am highly skeptical about reports of politicians making boisterous threats to leave the euro. They seem pretty empty to me.
Jim Rickards: “Now, political unification has had modest success. Military and foreign policy unification has really had no success at all. But the crown jewel of European unification is their monetary system, the euro and the European Central Bank. So that’s the pinnacle of their world historical efforts to unify the continent. They’re not going to give that away lightly. I mean, they view it in a much broader historical context than Wall Street and Americans. And so it’s of the utmost importance to them. And they’re going to do everything they can to preserve it.”
Jim Sinclair: “If the EU fails so does the USDX. With no mirror image to hold up the dollar artificially, the US dollar will fall faster than Greece’s credit.”
ANOTHER: “…If the Euro does fail, gold will become the “world oil currency”. We do know this full well, “the Central Banks will hoard all gold and buy any offered if this new European currency does not work”
May 14, 2010 4:40 PM - UNSNIP
 
Ivo Cerckel
honestmoney@maktoob.com
http://twitter.com/ivocerckel/
 
NOTES
 
(1)
5/22/98 ANOTHER (THOUGHTS!)
ANOTHER(THOUGHTS!)
Foundational Gold Trail Commentary
The Inside Story on the Gold-for-Oil Deal that could Rock the World’s Financial Centers
-Page Four  
http://www.usagold.com/goldtrail/archives/another4.html
 
(2)
UAE gets first-of-its-kind gold bar vending machine
Agencies -14 May 2010
\http://saudigazette.com.sa/index.cfm?method=home.regcon&contentID=2010051472255
SNIP
ABU DHABI – Abu Dhabi’s top hotel on Wednesday unveiled the UAE’s first ATM-type machine that gives those staying there the chance to withdraw 24-karat gold bars and coins.
The ATM-style kiosk cash-for-gold dispending machine is the brainchild of CEO of Ex Oriente Lux Thomas Giessler and the first international foray for the German entrepreneur’s Gold to Go” brand, which was first tested in his native country in 2009
 
(3)
Abu Dhabi hotel installs gold vending machine
(AFP) – 14 May 2010
http://www.google.com/hostednews/afp/article/ALeqM5jh-I81XFnWmsFxqrrfJytXQWZYvw?index=0
SNIP
ABU DHABI — There’s no mistaking what’s in this vending machine. The well-heeled in the Gulf can now grab “gold to go” from a hotel lobby in the United Arab Emirates, when the need for a quick ingot strikes.
On Thursday, a day after its inauguration, the shiny machine attracted spectators of many different nationalities who gathered to watch whenever an enthusiast was struck with the urge to splurge on a bar of the precious metal.
Abu Dhabi’s Emirates Palace Hotel became the first place outside Germany to install “gold to go, the world’s first gold vending machine,” said a statement from Ex Oriente Lux AG, the German company behind the vending machine.

Man in the News: Jean-Claude Trichet
By Ralph Atkins 
Financial Times, May 14 2010 21:13 | Last updated: May 14 2010 21:13
http://www.ft.com/cms/s/0/8bbaa714-5f8b-11df-a670-00144feab49a.html
SNIP
“What we saw on Monday was the most impressive internationally co-ordinated action since the [1985] Plaza Accord,” says Jim O’Neill, chief economist at Goldman Sachs. UNSNIP
 
With the 22 September 1985 Plaza Accord, France, West Germany, Japan, the United States of America and the United Kingdom of Northern Ireland and Great Britain agreed to depreciate the USA dollar in relation to the Japanese yen and German mark by intervening in currency markets.
http://en.wikipedia.org/wiki/Plaza_Accord
 
http://www.ecb.int/ecb/history/emu/html/index.en.html
Stage One of EMU
On the basis of the Delors Report, the European Council decided in June 1989 that the first stage of the realisation of economic and monetary union should begin on 1 July 1990. On this date, in principle, all restrictions on the movement of capital between Member States were abolished.
 
In 1990, the Belgian franc was pegged to the German mark, which was synonymous with stability.  Governor Viscount Alfons Verplaetse of the Belgian central bank wanted to be sure Belgium could participate in European Monetary Union from the beginning
http://nl.wikipedia.org/wiki/Fons_Verplaetse
 
In May 2010, all currencies are unpegging from gold which is thereby being demonetised.
 
The depeggings are being organised in such a way that, in the fall of all currencies vis-à-vis gold, the dollar is shining vis-à-vis the other currencies
 
European commercial banks are indeed struggling to get hold of dollars. This problem comes up every time strain mounts on the global financial system – the dollar is the world’s reserve currency and only the Fed can provide it.
http://blogs.ft.com/money-supply/2010/05/10/dollar-swaps-are-back-will-they-work/
 
The euro is the first currency that has not only SEVERED ITS LINK TO GOLD, but also its link to the nation-state, said the late ECB-president Wim Duisenberg on 9 May 2002 in his acceptance speech of the International Charlemagne Prize of Aachen for 2002.
(International Charlemagne Prize of Aachen for 2002
Acceptance speech by Dr. Willem F. Duisenberg, President of the European Central Bank, Aachen, 9 May 2002
http://www.ecb.eu/press/key/date/2002/html/sp020509.en.html
 
The others are following suit.
 
In a speech at a prize-giving ceremony for Polish prime minster Donald Tusk on Wednesday, German chancellor Angela Merkel said on Wednesday that the eurozone crisis is “existential” and “must be overcome” in order to avoid “unforeseeable consequences” for the future of the EU.
politigg.co.uk
http://bit.ly/d7ZqK1
 
Ivo Cerckel
honestmoney@maktoob.com
http://twitter.com/ivocerckel/