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RE: Monetary Union



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Please help make the Manifesto better, or accept it, and propagate it!
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That, the federal reserve will implement only a policy centred around
the US is obvious (why would they do anything otherwise ). I believe
India should allow holding of gold and other precious metals in
unlimited quantities and allow anyone to issue private currencies.
This will be a stable solution in the long term. the currencies (which
in the strictest sense, are only receipts for gold) will be in free
trade and will lead to an equilibrium. the US dollar for all its power
is after all, only a fiat currency.

c.prakash

Abhijeet Pradhan <perdi420@yahoo.com> wrote on Monday August 14, 2000
at  8:53am:

 >Hi All,
 >
 >Please read the article at
 >
 >http://www.mckinseyquarterly.com/newpub/enmo00.asp
 >
 >It proposes that inevitably, most countries will find costs of
 >maintaining a separate currency high enough that they would  >"dollarize" 
their economy... I too believe that this is inevitable.   >Already many 
South American countries are considering adopting the  >dollar as a second 
currency. I remember in an interview, someone  >from the Federal Reserve had 
mentioned that they had been approached  >by countries seeking to do the 
same.
 >He mentioned that they were in the process of coming up with the
 >protocols to do so, but maintained that any federal reserve policies  
 >would be implemented to serve US national interests and not that of  >any 
country that chose the dollar as its main or second currency.   >Given that 
the many small countries
 >will eventually peg their currencies to the dollar or the euro, I
 >would like to initiate a discussion on possible steps that India  >should 
take to engage this scenario....
 >
 >AP

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