Posted by Ivo Cerckel on January 4th, 2012
Will Paul De Grauwe now become sensible and advocate Freegold at the LSE?
Peter Praet, formerly from the Belgian central bankster, has been appointed chief economist of the European Central Bankster.
Before being a bureaucrat at the Banquestère National de Belgique,
Praet worked for the banksterism arm of the Sociètè Gènèrale de Belgique
which (the latter) was created under the Gold Standard somewhere between 1815 and 1830
by King Willem of the Low Countries.
As the other more recent Willem had problems with his chamber-pot
they now appointed Peter from the city of Manneken Pis as one of Otmar Issing’s successors,
Bernard Connolly having been so bright as to featuring Manneken Pis on the front-cover of his 1995 book “The Rotten Heart of Europe – The Dirty War for Europe’s Money” (which actually explains why this blogger didn’t read the book “in tempore non suspecto”, but only in 2011)?
Will Peter have the courage to say that Willem and Bernard erred?
Or did the late ECB president Dr Willem F. Duisenberg piss on purpose, in the golden Morean (as in Thomas More’s “Utopia”) chamber-pot he was provided in Aachen on 9 May 2002 on the occasion of his Acceptance speech of the International Charlemagne Prize of Aachen for 2002, to force us to read section 2 of Chapter 6 of Part 1 of Ludwig von Mises’s “The Theory of Money and Credit” and the rest of the book?
Praet graduated from KU Leuven.
Paul De Grauwe is the author of ‘Economics of Monetary Union” (Oxford UP. June 2012, 9th ed.)
De Grauwe is retiring next month from KU Leuven to the London School of Economics.
Will De Grauwe become sensible and advocate – or, at least, outline – Freegold?
Freegold means that the euro has a gold component and a paper component, and puts a “firewall” between both so that gold’s valuation as a wealth-preserving asset cannot be pulled lower by the inevitable inflation of the paper component of circulating currencies.
It is the (quarterly) marking to market (MTM) of the gold reserves of the European System of Central Banks (ESCB) , not to the Bretton Woods model of $42.2 like the USA central bank (originally $35), by the ESCB which provides that wall.
Today, the ECB can use not only it’s excess dollars to buy physical gold sold from other banks, they could use Euros printed outright to buy physical spot delivery. If their currency continues to fall before the dollar begins its terminal phase, this option is wide open to them. Certainly, “Free Gold” is not going to compete against them as it would against the dollar because it’s their policy to mark all its rise to the market. Because Free Gold will not be an official currency, its wealth building power will complement the bank’s reserves. In addition, national citizens would own gold as a wealth savings, not a currency.
(Walking the Gold Trail Using the “Thoughts!” of ANOTHER
Archive II (June 2000 to January 2001); “The Long and Winding Road”
FOA (09/16/00; 15:11:26MD – usagold.com msg#38)
After six miles we arrive at the burial tree!)