Zerohedge has just reported that the Finnish Minister for European Union Affairs, Alexander Stubb, just suggested that EU rescue funds (ESM/EFSF) could potentially partly guarantee Italy’s and Spain’s bonds if the two countries provide collateral.
And there you have it. As we informed readers nearly 10 months ago, the end game of the Euro debt crisis is a gold grab by the Nordic Euro members (Finland, Netherlands, and Germany) of the gold reserves of the Southern European nations.
We have ze cash, provided you have ze gold.
A refresher on the gold reserves of Italy, Spain, Greece, Portugal, and France:
forex reserves (%)
|1||United States of America||8,133.5||76.6%|
|2||Federal Republic of Germany||3,396.3||73.7%|
|3||International Monetary Fund||2,814.0||N.A.|
|6||People’s Republic of China||1,054.1||01.8%|
|10||Kingdom of the Netherlands||612.5||61.9%|
|11||Republic of India||557.7||09.6%|
|12||European Central Bank||502.1||35.0%|
|13||Republic of China (Taiwan)||422.4||05.9%|
|15||Bolivarian Republic of Venezuela||372.9||67.7%|
|16||Kingdom of Saudi Arabia||322.9||03.3%|
|17||United Kingdom of Great Britain and Northern Ireland||310.3||17.6%|
|18||Republic of Lebanon||286.8||32.2%|
|19||Kingdom of Spain||281.6||39.2%|
Perhaps it would have been easier had Germany simply kept its own reserves in Germany rather than the NY Fed?