The important thing about gold, as a basis for monetary systems, is that its value is stable.
Blind faith in quantitative easing is not a good basis for monetary policy.
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Under a dual-currency system, member countries would continue to enjoy the benefits of the euro while increasing their maneuvering space to drive monetary and fiscal policy on a local basis.
With many American stocks still quite appealing on a valuation basis, and Washington steadily expanding the monetary base in an attempt to support the labor market, high net worth individuals might be well served in the long run to carefully adjust their portfolios sooner rather than later.
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On August 31, 2011, Brazil unexpectedly cut rates by 50 basis points, and since then, ISI says 228 stimulative monetary and fiscal policy moves have been initiated across several countries, including the Philippines, China, France, and Colombia.
Indeed, all the major currencies such as the dollar, euro and British pound are managed on this basis, with a policy committee that attempts to manage economic conditions with monetary means.
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The official monetary policy rate, or federal funds rate remains at zero to 0.25 basis points and the Federal Open Market Committee has suggested rates will remain at that level through mid-2013.
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It is noteworthy that Pereira has made important, market-moving speeches before the key August 2011 meeting (when the bank surprised the market by cutting rates) and at the last monetary policy meeting (where the bank slowed the pace of rate cuts to 25 basis points).
On the other risk, a real tightening of monetary policy, Winmill explained that the end of QE2 acted like a tightening of 300 basis points along the middle of the curve.
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