Chart usGOLD   Chart usSILVER  
 
Food for thought
Lack of money is the root of all evil
Mark Twain  
Search for :
LATEST NEWS  :
MINING STOCKS  :
Subscribe
Write Us
Add to Google
Search on Ebay :
PRECIOUS METALS (US $)
Gold 1287.93-6.15
Silver 19.40-0.23
Platinum 1404.500.00
Palladium 788.60-6.30
WORLD MARKETS
DOWJONES 16409-16
NASDAQ 40969
NIKKEI 14512-4
ASX 544532
CAC 40 443226
DAX 941092
HUI 220-2
XAU 90-1
CURRENCIES (€)
AUS $ 1.4806
CAN $ 1.5240
US $ 1.3818
GBP (£) 0.8223
Sw Fr 1.2196
YEN 141.7200
CURRENCIES ($)
AUS $ 1.0721
CAN $ 1.1029
Euro 0.7237
GBP (£) 0.5951
Sw Fr 0.8825
YEN 102.5600
RATIOS & INDEXES
Gold / Silver66.39
Gold / Oil12.39
Dowjones / Gold12.74
COMMODITIES
Copper 3.050.00
WTI Oil 103.93-0.37
Nat. Gas 4.780.04
Market Indices
Metal Prices
RSS
Precious Metals
Graph Generator
Statistics by Country
Statistics by Metals
Advertise on 24hGold
Projects on Google Earth
Ambrose Evans-Pritchard: Italy should use gold reserves to change EMU policy
Published : May 03rd, 2013
413 words - Reading time : 1 - 1 minutes
( 0 vote, 0/5 ) , 1 commentary Print article
 
    Comments    
Tweet

By Ambrose Evans-Pritchard
The Telegraph, London
Thursday, May 2, 2013

The World Gold Council has advised Italy to deploy its 2,000 tonnes of gold to break free of European Monetary Union austerity dictates.

By using the reserves -- the world's fourth largest -- to collateralise the first chunk of any losses for bondholders, Italy could raise E400 billion or so on the capital markets and determine its own future for a while.

Italy did this in 1974 when it borrowed $2 billion from the Bundesbank, using gold as collateral.

Portugal did the same thing to borrow $1 billion from the Bank for International Settlements in the 1975-1977, and India used its gold to borrow from Japan in 1991.


A joint WGC-Ipsos survey found that 61 percent of Italian business leaders and 52 percent of the public would support the idea, with only a small minority opposed.

The report said:

"With Italy still facing significant financial challenges, national assets -- such as gold reserves -- present an opportunity to buy some vital breathing space.

"Gold-backed sovereign debt, or 'gold-backed bonds,' is issued debt that is underpinned by gold collateral. By using a portion of their gold reserves in this way, sovereign states could borrow more cheaply, without selling an ounce.

"This use of gold would help sovereign governments to regain the confidence of the bond markets and lower funding costs. Nations could raise between four and five times the value of their gold reserves -- a bond 20 percent collateralised by gold could raise around 80 percent of Italy's two-year refinancing needs.

"This would buy time for growth to take hold. It would lower sovereign debt yields without increasing inflation and would give Italy time and resources to work on economic reform and recovery. Using gold for the purposes of sovereign debt issuance would allow greater flexibility beyond austerity."

This is exactly the sort of thinking that is needed in the occupied EMU states, and Italy has been under occupation since the ECB effectively toppled the elected the government in the coup d'etat of November 2011 -- with the active collusion of President Napolitano, a former Stalinist who later transferred his ideological mania to the EU Project.

Such a plan has been proposed by Alessandro di Carpegna Brivio at Camperio Sim.

However, it would require the new premier, Enrico Letta, to tell Europe to jump in the lake, since "reflation in one country" would violate the EMU club rules.

Read the rest here

 

http://blogs.telegraph.co.uk/finance/ambroseevans-pritchard/100024392/it...

 

Data and Statistics for these countries : India | Italy | Japan | Portugal | All
Gold and Silver Prices for these countries : India | Italy | Japan | Portugal | All
Tweet
Rate :Average note :0 (0 vote)View Top rated
Previous article by
Chris Powell
All articles by
Chris Powell
Next article by
Chris Powell
Receive by mail the latest articles by this author  
Latest comment posted for this article
Pretty tough to beat gold as collateral. However Mr A E-P as well as most everyone else just doesn't get it. When you're grossly in debt, borrowing more is never a good idea. Now couple this with the idiotic idea that economic growth can grow indefini  Read more
overtheedge - 5/3/2013 at 3:50 PM GMT
TOP ARTICLES
Editor's picks
RSS feed24hGold Mobile
Gold Data CenterGold & Silver Converter
Gold coins on eBaySilver coins on eBay
Technical AnalysisFundamental Analysis

Chris Powell

Chris Powell is the secretary of the Gold Anti-Trust Action Committee (GATA) which has been organized to advocate and undertake litigation against illegal collusion to control the price and supply of gold and related financial securities.
Chris Powell ArchiveWebsiteSubscribe to his services
Most recent articles by Chris Powell
4/21/2014
4/21/2014
4/21/2014
4/21/2014
4/20/2014
All Articles
Comment this article
You must be logged in to comment an article8000 characters max.
 
Sign in
User : Password : Login
Sign In Forgot password?
 
 
       
Pretty tough to beat gold as collateral.

However Mr A E-P as well as most everyone else just doesn't get it.

When you're grossly in debt, borrowing more is never a good idea. Now couple this with the idiotic idea that economic growth can grow indefinitely and the stage is set for total collapse.

But for the sake of argument, let us assume borrowing against gold brings in needed cash for operating loans to productive businesses. Who is all this additional production going to be sold to? Either the prospective buyer is already drowning in debt (developed countries) or they have no money (third world countries).

Surely you don't think the 1% can and will buy all the world's products.

With the rapid rise of automation and robotics, there will be few job opportunities for unproductive, STEM illiterate bipeds outside of government bureaucracies.

Never encourage stupid people to breed.
Receive 24hGold's Daily Market Briefing in your inbox. Go here to subscribe or unsubscribe.
Disclaimer