A great article from the Trumpet. We at GermanyWatch are not religious, however this article raises some interesting questions:
"The forerunner of today’s European Central Bank, the European Monetary Institute (emi), once carried almost $27 billion in gold reserves. In 1998, the emi was replaced by the European Central Bank (ecb). No European Monetary Union financial data was published that year, while Europe’s elites “rebalanced” the financial system. When financial records resumed publication in 1999, $20 billion in gold had “gone missing” from EU coffers.
One would have assumed that these EU reserves should have been automatically transferred to the emi’s replacement, the ecb. No official explanation was ever given as to why it was not. It is interesting to note, however, that in that same year, the German central bank reported a $20 billion increase in its national gold reserves.
The result? Germany now owned 3,400 tons of gold—enough to back an entire currency if it wanted to!
As the late Christopher Story, a former adviser to British Prime Minister Margaret Thatcher, observed: “The Bundesbank suddenly acquired massive gold reserves, just as the euro was launched in the first quarter of 1999. The gold amassed... is more than enough with which unilaterally to introduce a gold-backed ‘new Deutsche mark’—in contrast to the U.S. dollar, which is not backed by gold” (Economic Intelligence Review, March 2000).
Is it possible that German elites could use their massive gold reserves to establish a gold-backed Deutsche mark in the event that the euro fails? Here is what the late Christopher Story wrote in that March 2000 edition of the Economic Intelligence Review:
“If Berlin were to decide that the progressive collapse of the euro, which is already well advanced, had ceased to be tolerable, it has already amassed the necessary reserves of gold to be able to float a ‘new Deutsche mark’ unilaterally—leaving the rest of Europe at Germany’s mercy and prospectively left with no practical choice, under the circumstances, but to accept the new Deutsche mark in lieu of the degraded euro ….”
“If Berlin were to decide that the progressive collapse of the euro, which is already well advanced, had ceased to be tolerable, it has already amassed the necessary reserves of gold to be able to float a ‘new Deutsche mark’ unilaterally—leaving the rest of Europe at Germany’s mercy and prospectively left with no practical choice, under the circumstances, but to accept the new Deutsche mark in lieu of the degraded euro ….”
The implications of all this for the United States, the dollar and the world, are huge. Whereas the U.S. dollar ceased to be backed by gold in 1971, the new Deutsche mark would be backed by gold. The dollar could be “dislodged” from its global primacy not by the euro, which will continue to be degraded either immediately or over time, but by the new Deutsche mark.
Back in the heady European summer of 1990, when Germanic euphoria was high over the unification of East and West Germany, British politician Nicholas Ridley told the Spectator that “European Monetary Union, then being discussed seriously for the first time, was ‘a German racket designed to take over the whole of Europe. … You might just as well give it to Adolf Hitler, frankly …. I’m not sure I wouldn’t rather have the [bomb] shelters and the chance to fight back, than simply being taken over by economics."
The GermanyWatch belief is that the Euro has not finished being used for German benefit.
We agree that the long term plan seems to be to allow the EU competitors to lose value under strict conditions. But that is already happening. The German backed Euro will undoubtedly become the new world reserve currency, putting the final knife-in-the-back of the US. Many economc reformists worldwide, especially anti-Anglo/American anti-capitalist economists, are calling out for a gold-backed reserve currency.
But when Germany is essentially in control of the Euro and the ECB, controls the purse strings, and has a lot of gold to back the Euro, why would they need to replace it with a DeutschMark? Vanity?
We do feel that another option for them is to break away from the traditional Euro, and start a 2-speed Europe, no doubt essentially a German currency, and invite members of the Eurozone into it. But this would only be likely if the other Euro members are putting too many barriers up to German domination, and a plan-B is required. German leaders have put far too much work in to the current Euro, to just abandon it. Far better to try and dominate the existing currency.
As GermanyWatch has explained in a previous article, the centralised control of European economies, run and backed by Germany, is all that is needed to make colonies of Europe. Germany already has Europe in Checkmate.
But when Germany is essentially in control of the Euro and the ECB, controls the purse strings, and has a lot of gold to back the Euro, why would they need to replace it with a DeutschMark? Vanity?
We do feel that another option for them is to break away from the traditional Euro, and start a 2-speed Europe, no doubt essentially a German currency, and invite members of the Eurozone into it. But this would only be likely if the other Euro members are putting too many barriers up to German domination, and a plan-B is required. German leaders have put far too much work in to the current Euro, to just abandon it. Far better to try and dominate the existing currency.
As GermanyWatch has explained in a previous article, the centralised control of European economies, run and backed by Germany, is all that is needed to make colonies of Europe. Germany already has Europe in Checkmate.
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