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Message:: [QUOTE="GoldFinger1969, post: 2648348, member: 73489"]Hold it.....<img src="styles/default/xenforo/clear.png" class="mceSmilieSprite mceSmilie8" alt=":D" unselectable="on" unselectable="on" /> If their currency DEPRECIATES vs. the U.S. $$$, then it takes MORE of their currency to buy a Dollar and a fixed price (let's say $35 to 1 ounce of gold) to get gold. There's no Free Lunch where they get to print money and "steal" gold by converting their depreciating currency into the stable/appreciating U.S. $$. It was the U.S. in 1971 that needed to inflate, not other countries. There was a drain from the U.S. of gold but it was because as the Reserve Currency the U.S. would be expected to run a trade deficit AND a current account surplus and to balance the books it required a gold exodus under a gold standard (today we have the current account surplus). It wasn't the loss of gold per se that was the issue (though it was the face of the issue to the average Joe), it was the inability of the Treasury/Fed to control U.S. economic fortunes as per the Treasury-Fed Accord of 1951. The whole problem is that if you want to "fix" the currency then something else will have to fluctuate to absorb shocks.  It's like building a car with small tires and no shocks or struts.  It's great on a flat level road that is smooth, but not so with bumpy roads.<img src="styles/default/xenforo/clear.png" class="mceSmilieSprite mceSmilie8" alt=":D" unselectable="on" unselectable="on" /> An economy has to be able to have shock absorbers. These shock absorbers can either be INTERNAL (GDP, labor, prices of goods/service) or EXTERNAL (currency, inflation rate).  In the Eurozone, their is no independent monetary policy at the national level so the adjustments have to be internal only (hence the pain and revolt against the ECB and EU).[/QUOTE]

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