"The euro needs to assert itself against gold and silver"

Debate on debt crisis

Should we abandon the euro?

"The euro needs to assert itself against gold and silver"


With so-called rescue packages or a fiscal union can not resolve the euro crisis. Because it is essentially a crisis of paper currency: the euro - as did every major currency in the world - is state-owned monopoly money that is brought out of nothing by lending into circulation. Such a currency design has been tried in the past again and again - and always has taken a disappointing end. It leads not only to economic and financial crises, but is especially dangerous in an indebtedness to lead, from which states and central banks will try to deliver with inflation.

It would therefore be better to allow a competitive currency, as proposed by the economist and Nobel laureate economist Friedrich August von Hayek decades ago, the euro must then compete with other money market players are free to choose, say. These states must first remove the laws that suppress the free currency competition so far. Market players were then free to choose the one to use money that suits their needs best. As part of a free currency competition gold and silver, but of course all other currencies would rise against the euro as an alternative.

Digitized precious metal standard

Gold could serve as a unit of account - which is not to be confused with the requirement that all money must be backed by gold. Using modern technology could create a "digitized precious metal standard." To start the currency competition, it does not even require a decision unit for all governments in the euro area. It would probably be enough if the Federal Republic of Germany put him in motion.

At the end of the currency competition would bring good money. It would increase the disciplinary pressure on the European Central Bank (ECB) to maintain the purchasing power of the euro stable. For an inflationary policy would devalue the Euro visible for all to compete against other currencies. The states are in debt in euros would be in trouble. A competition of currencies would increase the incentive to over-indebtedness to a debt and not to resort to inflationary policies that would be associated with anticipated high economic costs. Source