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    Manneken Pis, ECB, and Ludwig von Mises

    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!)

    Ivo Cerckel

    3 Responses to “Manneken Pis, ECB, and Ludwig von Mises”

    1. Chris Says:

      Good read on the hostory of money: What is “money”? Is it the same as “currency”? What about gold?


    2. Ivo Cerckel Says:

      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)
      “Money” is a dead, meaningless concept. If you want to use it, then define it.
      Circulating Currency has a concrete meaning.
      (FOFOA, “Windmills, Paper Tigers, Straw Men and Fallacious Fallacies, December 28, 2010

      Gold emerged as money [Ivo: yes, but “is” it money?] not through a social contract
      but through the spontaneous convergence of the choices of many individuals.
      (Jörg Guido Hülsmann, “The Ethics of Money Production”, Auburn, Alabama, Ludwig von Mises Institute, 2008, p. 23 paraphrase)

      There were authors who tried to explain the origin of money by decree or covenant. The authority, the state, or a compact between citizens has purposively and consciously established indirect exchange and money. [Carl Menger showed] the main deficiency of this method.
      (Ludwig von Mises, “Human Action – A Treatise on Economics”, Chicago, Contemporary Books, 1966, (originally published 1949), 3rd. rev. ed., p. 405)

      Carl Menger discovered that institutions appear through a social process, composed of a multiplicity of human actions, which is always led by a relatively small group of individuals who, in their particular historical and geographical circumstances, are the first ones to discover that certain patterns of behaviour help them achieve their goals more efficiently.
      ((Jesús Huerta de Soto, “Money, Bank Credit, and Economic Cycles”, Auburn, Alabama, Ludwig von Mises Institute, 2009, 2nd ed.,., p. 21)

      “Monnaie courante” in French means “common practice”,
      “courir” in French is “currere” in Latin of which the present participle is “currens”
      I submit that that’s the etymological origin of the word “currency” –
      the adjective becoming the noun in English – also for John Locke.

      Etymonline.com says that the etymology of “currency” which I have traced back to “monnaie courante” goes back to the 1650s, where it referred to ” he condition of flowing,” from the Latin “currens”, present participle of. “currere” “to run” (see current); [expessed] the sense of a flow or course [and was] extended [in] 1699 (by John Locke (1632 – 17040)) to “circulation of money.”

    3. Ivo Cerckel Says:

      Praet did of course not graduate from KU Leuven
      but from Université libre de Bruxelles.

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