Honest Money

Gold is Wealth Hiding in Oil

Jérôme Kerviel and Jean-Claude Trichet

Posted by Ivo Cerckel on June 11th, 2010

From Times Online
June 11, 2010
Jérôme Kerviel’s stock market gambles ‘crazy’ and ‘absurd’
Adam Sage, Paris
http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article7148025.ece
SNIP
Former colleagues of rogue trader Jérôme Kerviel denounced his stock market gambles as absurd and crazy in a Paris courtroom yesterday.
Selim Nemouchi, also a trader at Société Générale, told the Paris Criminal Court that Mr Kerviel had broken banking rules and customs to stake tens of billions of euros on the stock market. His evidence was significant because Mr Kerviel insisted that it was standard practice for traders to break official limits with the approval of managers.
Mr Kerviel, 33, faces a maximum sentence of five years in jail and a fine of €375,000 (£309,000) if found guilty of breach of trust, computer abuse and forgery.
UNSNIP
 
Money is a good readily acceptable in exchange by everyone in a given geographical area and is sought for the purpose of being re-exchanged. (George Reisman, “Capitalism – A Treatise on Economics”, Ottawa, Illinois, Jameson books, 1998. 3rd ed. p. 142)
 
Today, paper is considered to be money.
 
On Thursday 10 June 2010, European Central bank president Jean-Claude Trichet said, at his monthly press conference after the decision of the ECB governing council leaving interest rates unchanged, that he wants to restore the appropriate functioning of the monetary-policy transmission-mechanism.
 
There’s nothing to be transmitted. Money is no longer a good.
 
Trichet nevertheless went on to argue that the euro is a credible currency that keeps its value and whose track-record in maintaining price-stability is exceptional and that this capacity to maintain price stability is a major asset for domestic and international investors.
 
He declined to further comment, that is, he declined to come forward with the ECB’s, or to say in the open that the ECB has, gold reserves which are marked to market (price) on a regular basis.
 
Absurde, n’est-il pas?
 
Ivo Cerckel
honestmoney@maktoob.com

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