Close X Cookies are necessary for the proper functioning of 24hGold.com. By continuing your navigation on our website, you are accepting the use of cookies.
To learn more about cookies ...
EnglishFrench
Gold & Silver Prices in

Ambrose Evans-Pritchard: Italy should use gold reserves to change EMU policy

IMG Auteur
Published : May 03rd, 2013
413 words - Reading time : 1 - 1 minutes
( 0 vote, 0/5 ) , 1 commentary
Print article
  Article Comments Comment this article Rating All Articles  
0
Send
1
comment
Our Newsletter...
Category : GoldWire

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
<< Previous article
Rate :Average :0 (0 vote)
>> Next article
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.
WebsiteSubscribe to his services
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 4:50 PM GMT
Top articles
Latest Comments
A Salvo in the Battle for the Go...
04:41overtheedge
I would argue that the devil is in the details, i.e. the definition of money. What the people of the US are using is currency. Currency bei...
A Salvo in the Battle for the Go...
01:03Malcolm B.
Keith, Simple answer is to buy and hold gold in the UK.... Attracts no vat or capital gains on sale, (although I guess there may be issues...
A Salvo in the Battle for the Go...
26 FebFrankinca1
Sort of written for a PHD in economics, which gold believers (myself) are not often that well educated, have difficulty following. The definition o...
A Salvo in the Battle for the Go...
26 Feb07788525833
The dollar has a monopoly over all other types of money which is rammed down peoples throats by gun and drones , any one wanting to change this...
In Search of the Magic Wand: Car...
25 FebDoom
Yes, stay away from University of Phoenix, a school with a 9% graduation rate, that only gets students because it spends $200,000 a day on Google a...
Emails From Kiev: Free Speech Va...
25 Febovertheedge
"The problem is, the asshats associated with Poroshenko are even worse than he is." I'm assuming you mean the predators in the US White Ho...
The Bull Case For Gold This Year...
25 Febdepourcq
You talked about all the wrong reasons that gold will rise or fall, their is only one that everyone should know. The US has a debt of 18.134 trilli...
The Bull Case For Gold This Year...
25 Febneville
The fact that you are very lowly rated might be one of two things .1.You have been playing this card to often (Bear Joker) 2,The other is that you ...
Most commented articlesFavoritesMore...
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS
Mining Company News
Caledonia Mining(Cu-Ni-Co)CAL.TO
Update on Implementation of the Revised Investment Plan
CA$ 0.72+0.00%Trend Power :
Corporate news
Avanti Mining(Ag-Le)AVT.V
Alloycorp Mining to Exhibit at Prospectors and Developers Association Conference March 1 to 4
CA$ 0.06+0.00%Trend Power :
Corporate news
Endeavour Financial(Ag-Au-Co)EDV.TO
Mining Generates Record Operating Cash Flow in 2014
CA$ 0.58+3.57%Trend Power :
Financials
Northern Gold(Au-Zn)NGM.V
Announces Updated Bulk Sample Results-Recovers 1,797 Oz Gold at 94.9% Recovery
CA$ 0.03+100.00%Trend Power :
Corporate news
Forum Uranium(Coal-Ngas-Ur)FDC.V
Commences Drilling on Its 100% Owned Fir Island Project
CA$ 0.08-5.56%Trend Power :
Corporate news
Anaconda Min.(Au)ANX.TO
maximizing Pine Cove deposit potential through recent drilling
CA$ 0.06+22.22%Trend Power :
Corporate news
Sprott Resources(Ag-Au-Co)SCP.TO
Resource Corp. Announces Date for 2014 Annual Results Conference Call
CA$ 1.33+0.00%Trend Power :
Corporate news
Nevada Copper(Cu)NCU.TO
Achieves Major Milestone
CA$ 1.70+7.59%Trend Power :
Corporate news
Vena Res.(Ag-Au-Cu)VEM.TO
Intersects 24.2 Metres of 131 g/t Ag and 0.4 g/t Au Including 8.1 Metres of 292 g/t Ag and 0.
CA$ 0.07+0.00%Trend Power :
Corporate news
Tanami Gold(Ta-Au)TAM.AX
NST Signs HOA to Acquire Central Tanami
AU$ 0.03-7.14%Trend Power :
Corporate news
Comments closed
  All Favorites Best Rated  
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.
Subscribe to 24hGold’s daily market briefing
  • Prices and data of precious metals in 119 currencies and world mining companies
  • Daily analysis of the economy, markets and more
  • Free, daily and indispensable
Stay informed, subscribe now !
* Your email will never be shared.