After the collapse of Bretton Woods in 1971 several European central banks tried setting up a new gold pool to stabilize the price and move to a quasi gold standard. The US wanted to phase out gold from the system and enforce a dollar standard on the world.
This is probably the most comprehensive and informative article I have read on the real politics underlying post-war international monetary policy. It deserves a wide circulation.
So, is it fair to say that despite the persistent movement of physical from west to east, most European nations are hodling? If so, that suggests private holdings in the west are being seriously eroded.
Quite a few commentators have made the point that gold has held up remarkably well in the face of much higher real rates, mostly due to official buying from the Global South, in particular China. If ever western investors shift to the buy side, seems to me gold may become a "no offer" market. Not literally of course, but in broad brush stroke terms.
The temptation for at least some European countries to assert their independence from the US may become irresistible in the not too distant future. Certainly, their subjugation doesn't seem to have been profitable, either economically or geopolitically.
Thank you, Jan. Your articles get ever better, and this is one of the best. Much appreciated.
This is probably the most comprehensive and informative article I have read on the real politics underlying post-war international monetary policy. It deserves a wide circulation.
Hier lijkt heel wat tijd en research in vooraf gegaan. Mijn complimenten voor dit artikel. Blijven onderzoeken en schrijven Jan.
Warme groet uit Belgie van een trouwe lezer.
Informative historical review. Clearly Germany is a country under occupation, aren't the Netherlands too?
Thanks!
Another fascinating essay, Jan.
So, is it fair to say that despite the persistent movement of physical from west to east, most European nations are hodling? If so, that suggests private holdings in the west are being seriously eroded.
Quite a few commentators have made the point that gold has held up remarkably well in the face of much higher real rates, mostly due to official buying from the Global South, in particular China. If ever western investors shift to the buy side, seems to me gold may become a "no offer" market. Not literally of course, but in broad brush stroke terms.
The temptation for at least some European countries to assert their independence from the US may become irresistible in the not too distant future. Certainly, their subjugation doesn't seem to have been profitable, either economically or geopolitically.
Set to be a truly fascinating period.