You are here
Gold Rush 21 convenes to notice from Canadian and Mexican news media
From the Gulf Daily News
Bahrain
Sunday, August 7, 2005
http://www.gulf-daily-news.com/Story.asp?
Article=118774&Sn=BUSI&IssueID=28140
WASHINGTON -- The euro could supplant the dollar as the world's
dominant reserve currency within 20 years if Britain and other
European Union countries adopted the unit and the greenback
continues to slide, a recent study showed.
The paper, released by the National Bureau of Economic Research this
week, outlined two key criteria for a change of the current status
quo -- where about two thirds of world's central bank reserves are
denominated in the US currency.
First was the scope for expansion of the euro zone so that it tops
the gross domestic product of the United States and envelops
London's dominant international financial centre.
Second is the role of US economic policies and the risk that they
might undermine confidence in the dollar through inflation and
depreciation.
"We find that if all 13 EU members who are not currently in EMU
(European Economic and Monetary Union) join it by 2020, including
the United Kingdom, then the euro overtakes the dollar a few years
later," the study's authors wrote.
"We also find that even if some of these countries do not join, a
continuation of the recent depreciation trend of the dollar -- were
it to occur for whatever reason -- could bring about the tipping
point even sooner."
The study, written by Harvard University's Jeffrey Frankel and
Menzie Chinn of the University of Wisconsin at Madison, said euro
setbacks this year -- from sluggish growth and the rejection of the
EU constitution -- were unlikely to delay for long the prospect of
continued deficit-driven dollar losses in future.
"Our results suggest that such dollar depreciation would be no free
lunch, and could have profound consequences for the functioning of
the international monetary system," it said.
Debate resurfaced over the past year about the effects of rising US
international indebtedness on the dollar's prized reserve currency
status, where the United States has a major advantage of borrowing
from the rest of the world in its own currency.
The US current account deficit has ballooned in recent years to
about 6pc of GDP and its outstanding stock of debts to the rest of
the world has risen to 20pc of GDP.
As world central bank reserves, particularly from Asia, have
rocketed over the past three years as downward pressure on the
dollar has mounted, speculation has grown that central banks may
soon wish to diversify away from dollars.
Most economists reckon the euro is one of few sufficiently large and
liquid alternative currencies.
The most recent data shows about 64pc of the $3.81 trillion of world
currency reserves are held in dollars and 20pc in euros. But signs
of diversification are mounting.
On July 21, China -- with the second biggest reserves hoard in the
world at $711 billion -- changed its yuan target regime from a fixed
dollar peg to one shadowing a basket of currencies.
On August 1, Russia -- with $114 billion of foreign currency
reserves -- said it raised the share of euros in its day-to-day
currency target basket to 35 per cent from 30pc and cut the dollar
proportion to 65pc from 70pc.
----------------------------------------------------
To subscribe to GATA's dispatches, send an e-mail to:
gata-subscribe@yahoogroups.com
To unsubscribe, send an e-mail to:
gata-unsubscribe@yahoogroups.com
----------------------------------------------------
RECOMMENDED INTERNET SITES
FOR DAILY MONITORING OF GOLD
AND PRECIOUS METALS
NEWS AND ANALYSIS
Free sites:
http://www.cbs.marketwatch.com
http://www.usagold.com/amk/usagoldmarketupdate.html
http://www.capitalupdates.com/
http://www.silver-investor.com
http://www.thebulliondesk.com/
http://www.goldismoney.info/index.html
http://www.minersmanual.com/minernews.html
http://www.a1-guide-to-gold-investments.com/euro-vs-dollar.html
http://www.investmentrarities.com
http://www.kereport.com
(Korelin Business Report -- audio)
http://www.plata.com.mx/plata/home.htm
(In Spanish)
http://www.plata.com.mx/plata/plata/english.htm
(In English)
http://www.resourceinvestor.com
http://www.goldpennystocks.com/
Subscription sites:
http://www.lemetropolecafe.com/
http://www.interventionalanalysis.com
http://www.investmentindicators.com/
Eagle Ranch discussion site:
http://os2eagle.net/checksum.htm
Ted Butler silver commentary archive:
http://www.investmentrarities.com/
----------------------------------------------------
COIN AND PRECIOUS METALS DEALERS
WHO HAVE SUPPORTED GATA
AND BEEN RECOMMENDED
BY OUR MEMBERS
Blanchard & Co. Inc.
909 Poydras St., Suite 1900
New Orleans, Louisiana 70112
888-413-4653
http://www.blanchardonline.com
Centennial Precious Metals
3033 East First Ave., Suite 807
Denver, Colorado 80206
1-800-869-5115
http://www.USAGOLD.com
Michael Kosares, Proprietor
cpm@usagold.com
Colorado Gold
222 South 5th St.
Montrose, Colorado 81401
http://www.ColoradoGold.com
Don Stott, Proprietor
1-888-786-8822
Gold@gwe.net
El Dorado Discount Gold
Box 11296
Glendale, Arizona 85316
http://www.eldoradogold.net
Harvey Gordin, President
Office: 623-434-3322
Mobile: 602-228-8203
harvey@eldoradogold.net
Gold & Silver Investments Ltd.
Mespil House
37 Adelaide Rd
Dublin 2
Ireland
+353 1 2315260/6
Fax: +353 1 2315202
http://www.goldinvestments.org
info@gold.ie
Investment Rarities Inc.
7850 Metro Parkway
Minneapolis, Minnesota 55425
http://www.gloomdoom.com
Greg Westgaard, Sales Manager
1-800-328-1860, Ext. 8889
gwestgaard@investmentrarities.com
Kitco
178 West Service Road
Champlain, N.Y. 12919
Toll Free:1-877-775-4826
Fax: 518-298-3457
and
620 Cathcart, Suite 900
Montreal, Quebec H3B 1M1
Canada
Toll-free:1-800-363-7053
Fax: 514-875-6484
http://www.kitco.com
Lee Certified Coins
P.O. Box 1045
454 Daniel Webster Highway
Merrimack, New Hampshire 03054
http://www.certifiedcoins.com
Ed Lee, Proprietor
1-800-835-6000
leecoins@aol.com
Lone Star Silver Exchange
1702 S. Highway 121
Suite 607-111
Lewisville, Texas 75067
214-632-8869
http://www.discountsilverclub.com
Miles Franklin Ltd.
3015 Ottawa Ave. South
St. Louis Park, Minn. 55416
1-800-822-8080 / 952-929-1129
fax: 952-925-0143
http://www.milesfranklin.com
Contacts: David Schectman,
Andy Schectman, and Bob Sichel
Missouri Coin Co.
11742 Manchester Road
St. Louis, MO 63131-4614
info@mocoin.com
314-965-9797
1-800-280-9797
http://www.mocoin.com
Resource Consultants Inc.
6139 South Rural Road
Suite 103
Tempe, Arizona 85283-2929
Pat Gorman, Proprietor
1-800-494-4149, 480-820-5877
Metalguys@aol.com
http://www.buysilvernow.com
Swiss America Trading Corp.
15018 North Tatum Blvd.
Phoenix, Arizona 85032
http://www.swissamerica.com
Dr. Fred I. Goldstein, Senior Broker
1-800-BUY-COIN
FiGoldstein@swissamerica.com
The Moneychanger
Box 178
Westpoint, Tennessee 38486
http://www.the-moneychanger.com
Franklin Sanders
1-888-218-9226, 931-766-6066
----------------------------------------------------
HOW TO HELP GATA
If you benefit from GATA's dispatches, please
consider making a financial contribution to
GATA. We welcome contributions as follows.
By check:
Gold Anti-Trust Action Committee Inc.
c/o Chris Powell, Secretary/Treasurer
7 Villa Louisa Road
Manchester, CT 06043-7541
USA
By credit card (MasterCard, Visa, and
Discover) over the Internet:
http://www.gata.org/creditcard.html
By GoldMoney:
http://www.GoldMoney.com
Gold Anti-Trust Action Committee Inc.
Holding number 50-08-58-L
Donors of $1,000 or more will, upon request,
be sent a print of Alain Despert's colorful
painting symbolizing our cause, titled GATA.
Donors of $200 or more will receive copies
of "The ABCs of Gold Investing" by Michael
Kosares, proprietor of Centennial Precious
Metals in Denver, Colorado, and "The Coming
Collapse of the Dollar" by James Turk and
John Rubino.
GATA is a civil rights and educational
organization under the U.S. Internal Revenue
Code and contributions to it are tax-deductible
in the United States.
