Sunday, June 3, 2012

Eurobonds: moneytizing gold.

There are some reports out of Europe that some countries want an Eurobond that would spread the risk equally over all nations in the EU. The Germans called this 'having a credit card guaranteed by Germany.' Another possible solution is to use a nation's gold to guarantee debt above 60% of GDP. This would certainly help Italy, but only if gold were revalued much higher.

Hmmm. Interesting.

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