Germany is the only solvent state in Europe. It is necessary that Germany, not the ECB take charge. They are willing to help and to take control of the EU so long as they have gold as collateral. Phoenix Capital Research describes the situation:
Folks, the EU End Game is now officially in play. Germany has played its hand: if you want us to foot the bill we want your Gold. This tells us:
- Germany is aware that most EU Sovereign bonds and paper are garbage (this is confirmed by the fact that Germany has passed legislation allowing its own banks to dump EU Sovereign bonds into a bailout fund during a Crisis).
- Germany will only put up more money if it’s granted fiscal control of the EU and Gold bullion as collateral.
- Germany is the REAL monetary power in Europe (not the ECB).
In a world of failing fiat currency, paper carries no weight. Germany understands better than most countries what is apt to happen to the value of the Euro. They wants gold as collateral.