[e-gold-list] Re: The US Dollar Battle

[C. Cormier - Ormetal Inc.]

On 4 Apr 2001, at 1:58, SnowDog wrote:

> Here's what I find interesting about this: If the price of gold goes 
up,
> then doesn't this mean that the currency issuer can inflate his 
currency
> more, since the value of his gold-reserve rises? Doesn't this 
subsequent
> inflation cause the price of gold to go even higher?

Craig, if gold goes up, it means that other paper currencies are 
likely to be going down against gold and the Euro. EUC reserves 
include also USD, Yens ... so over all it is likely that gold will  
simply allow their reserves to remain stable in purchasing power.
There the money stocks as a whole should not inflate.

Claude


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