Honest Money

Herman Van Rompuy, president of the European Union.  BLAMES the strength of the euro in recent years for blinding the eurozone to its underlying fiscal problems. (1)

 

Van Rompuy forgets that the euro not only has severed the link to gold but also to the nation state (s’ budgets) . (2)

 

What’s the problem, Mr Van Rompuy?

 

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.  (3).

 

Money has no fiscal aspect, whatsoever.

 

Ivo Cerckel
honestmoney@maktoob.com

 

 

NOTES
 
(1)
Strong euro hid crisis, says EU chief
By Tony Barber in Brussels
Published: June 13 2010 22:05 | Last updated: June 13 2010 22:05
http://business.timesonline.co.uk/tol/business/economics/article7148137.ece
SNIP

Herman Van Rompuy, president of the European Union, has blamed the strength of the euro in recent years for blinding the eurozone to its underlying fiscal problems.

 

(2)

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

SNIP

The euro, probably more than any other currency, represents the mutual confidence at the heart of our community. It is the first currency that has not only severed its link to gold, but also its link to the nation-state. It is not backed by the durability of the metal or by the authority of the state. Indeed, what Sir Thomas More said of gold five hundred years ago – that it was made for men and that it had its value by them – applies very well to the euro.

 

(3)

George Reisman, “Capitalism – A Treatise on Economics”, Ottawa, Illinois, Jameson books, 1998. 3rd ed. p. 142