Charlemagne and the Plaza Accord
Posted by Ivo Cerckel on May 15th, 2010
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/