ECB Members Sold No Gold Last Week

Thursday, September 01, 2005

The members of the European Central Bank (ECB) have for the first time sold no gold in the week ending August 26. Gold and gold receivables stood unchanged at 137.829 billion Euros, the weekly Consolidated financial statement of the Eurosystem shows. To get money the ECB has obviously turned to a cheaper source, called the printing press. The latest available money supply figures (pdf) from the end of June show that M1 growth accelerated from an annual rate of 10.9 to 11.1 percent while the three-month average now stands at 10.7 percent. Money supply M3 rose from 7.6 to 7.9 percent, the three-month average now standing at 7.6 percent. GDP growth expectations for 2005 do not exceed more than one percent anymore due to to restrained consumer spending in the wake of rocketing fuel prices.
One reason for the strong growth in M1, which is cash in circulation plus overnight deposits could be a shift towards the shadow economy in high-tax burdened Europe as well as currency being deposited under the mattress.


Wikinvest Wire