German Labour Minister Wants Gold Collateral

"The battle over Greek collateral took another interesting turn as the German Labour Minister hopped into the fray asking for gold as collateral.

The Irish Times reports Merkel faces fight to restore order after intervention on collateral

BACKGROUND : Minister’s remarks rapidly sent German officials into full damage limitation mode

URSULA VON der Leyen picked her moment well.

Hours before a crucial meeting of Germany’s ruling Christian Democrats (CDU) yesterday, as a summer storm rolled through the German capital, the labour minister suggested Germany should follow Finland’s lead on Greece.

Rather than simply hand over further loans to Athens, money many Germans believe they will never see again, Dr von der Leyen suggested Berlin should ask for collateral. Gold, preferably..."

at  http://globaleconomicanalysis.blogspot.com/2011/08/moodys-warns-against-collateralfinnish.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+MishsGlobalEconomicTrendAnalysis+%28Mish%27s+Global+Economic+Trend+Analysis%29