Posted on 02/26/2010 7:17:34 AM PST by TigerLikesRooster
China To Purchase Half of IMF's Gold
Front page / Business / Finance
25.02.2010 Source: Pravda.Ru
China has confirmed the intention to purchase 191.3 tons of gold from the International Monetary Fund at an open auction, Finmarket news agency said.
World central banks started to increase their gold reserves after prices on gold began to climb in 2001. The IMF sells gold within the scope of a program to diversify sources of income and achieve an increase in lending.
The IMF announced an intention to sell 403.3 tons of gold in accordance with the adequate decision made by the board of directors of the fund in September of 2009. India, Mauritius and Sri Lanka purchased about 212 tons of the amount at the end of 2009. India purchased most – 200 tons.
(Excerpt) Read more at english.pravda.ru ...
P!
During the 20s, the US had massive surpluses and accumulated huge amounts of gold. However, the 30s showed that without a healthy economy, gold is of little use.
The third possible use should the price of the stuff ever come down enough for it would be duck and goose hunting. The stuff is half again denser than lead, soft, and totally inert and would be the perfect metal for waterfowl shot.
FROM PRAVDA!!!
Of course we won’t see anything about this in the news because A) it would require the media to actually give a back story as to why this is a frightening situation (they don’t have faith in our treasuries and are going for a solid investment) and B) it would go against the “Obama is fixing everything!!” story they run on a loop.
..and medical but you are correct. The only thing that is truly ‘non-fiat’ are direct goods that can be bartered.
What next? A radiological device exploded inside the gold depository at Fort Knox?
Just yesterday, china said they wont be buying any, and now they’re buying
no, gold act as a medium of trade and set discipline on money printers. Its paper money that has no value at all and without the dicipline of gold, limited commodity. Paper money allows government to spend as much as they want while secretly stealing from citizen via inflation
The Communists tried to make “the new man”. You would like to see a “new man” who has no visceral liking for gold. This liking for gold has gone on for thousands of years across thousands of tribes and civilizations. Good luck repealing human history and human psychology. For some strange reason people like gold and always make it a store of value.
money needs to be limited in supply and valuable. If you can just create it out of thin air, whats the point of accumulating it? Money is a store of your production/your hard work, and if production/your hard work can be created by government printing presses then your work has no value
The best use of gold is as a medium for settling sovereign accounts.
It is as old as time and the current use of electronic blips as medium of sovereign exchange is an anomaly, a trivial blip on the scale of history.
The true conservatives are reverting to the mean and preparing for the time when gold will be the only acceptable material to settle Trade accounts.
Please add me to the PING list and:
There is a scam of major proportions- see this thread:
http://www.freerepublic.com/focus/f-news/2457221/posts
When Obama was elected, one of the first things he did was give $108 Billion dollars to the International Monetary Fund, (IMF).
* Obama Administration pushes IMF gold sales through House by tieing it to security bill
Snip * What’s Another 108 Billion? Your latest donation to the IMF.
Snip * Obama Bailed out Citi, Twice so far…
The U.S. gave up billions in tax money in deal for Citigroup’s bailout repayment
Snip
* George Soros Buys Citigroup Inc.,
After the bailout and the forgoing of repayment, Soros buys Citi at a huge discount. $1,4 Billion Dollars. We lost all that money. That’s only the beginning.
* Saudi prince comes to rescue of Citigroup
Not only does George Soros own Citi, but guess who is his biggest shareholder?.....None other than Prince Al-Waleed bin Talal.
Snip * George Soros doubles gold investment
“US billionaire George Soros has more than doubled his investment in gold, despite calling it the “ultimate bubble” just weeks ago.
Snip * Fake Gold portends Silver Explosion!
Snip As reported in The Daily Gold, by Harvey Organ:
“The above will help explain why I cannot balance supply and demand of gold. We know that demand is somewhere around 4500 tonnes of gold and supply around 2400 tonnes and thus the deficit was funded with supplies from central banks. The above ground gold supplied by the central banks came through the leasing process.”
* And his final comment on Campaign for Liberty:
“Is this story for real? Hard to say, but given the history of manipulation of gold by the Federal Reserve (e.g., see http://www.zerohedge.com/article/smoking-gun-fed-controlling-gold, and www.gata.org), how will we know unless we carry out a full audit of the Federal Reserve?”
(Excerpt) Read more at noisyroom.net ...
"New man" is the outdated concept from 19th century, the centerpiece of new worship disguised as intellectual and rational endeavor.
I think you overestimate how much is still in Ft Knox.
Also, contrary to your assertion, gold is used in a myriad of ways; not only as a pure element, but in many alloys and chemical compounds in everyday use. The color red for example.
Actually, I think what happened in the 30s was that European nations tried to return to a gold standard at inflated currency values.
http://www.econlib.org/library/Enc/GreatDepression.html
“By 1914, most developed countries had adopted the gold standard with a fixed exchange rate between the national currency and gold—and therefore between national currencies. In World War I, European nations went off the gold standard to print money, and the resulting price inflation drove large amounts of the world’s gold to banks in the United States. The United States remained on the gold standard without altering the gold value of the dollar. Investors and others who held gold sent their gold to the United States, where gold maintained its value as a safe and sound investment. At the end of World War I, a few countries, most notably the United States, continued on the gold standard while others temporarily adopted floating exchange rates. The world’s international finance center had shifted from London to New York City, and the British were anxious to regain their old status. Some countries pledged to return to the gold standard with devalued currencies, while others followed the British lead and aimed to return to gold at prewar exchange rates.
This was not possible, however. Too much money had been created during the war to allow a return to the gold standard without either large currency devaluations or price deflations. In addition, the U.S. gold stock had doubled to about 40 percent of the world’s monetary gold. There simply was not enough monetary gold in the rest of the world to support the countries’ currencies at the existing exchange rates. As a result, the leading nations established a gold exchange system whereby the governments of the United States and Great Britain would be willing, at all times, to redeem the dollar and the pound for gold, and other countries would hold much of their international reserves in British pounds or U.S. dollars.
The demand for gold increased as countries returned to the gold standard. Because the franc was undervalued when France returned to the gold standard in June 1928, France began to receive gold inflows. The undervalued franc made French exports less expensive in foreign countries’ currencies and made foreign imports into France more expensive in francs. As French exports rose and French imports fell, their international accounts were balanced by gold shipped to France. France’s government, contrary to the tenets of the gold standard, did not use these inflows to expand its money supply. In 1928, the Federal Reserve System raised its discount rate—that is, the rate it charged on loans to member banks—in order to raise interest rates in the United States, which would stem the outflow of American gold and dampen the booming stock market. As a result, the United States began to receive shipments of gold. By 1929, as countries around the world lost gold to France and the United States, these countries’ governments initiated deflationary policies to stem their gold outflows and remain on the gold standard. These deflationary policies were designed to restrict economic activity and reduce price levels, and that is exactly what they did. Thus began the worldwide Great Depression.”
I have only read this once, so I am still thinking on it.
~SC
“the value of gold is based on psychology and psychiatry, and not on anything in the realm of economics or physics”
What is the value of paper printed with a number and a few 0’s after it? Gold is a finite resource, with a long history as a store of value. Paper money has a long history of corruption, and when a gov’t has nothing tangible to back the currency with....Weimar Republic, Mexican Peso, Zimbabwe....History is repleat with examples of failed fiat currency. Hard currency has no such examples.
“Government is the only institution that can take a valuable commodity like paper and make it worthless by applying ink.” Ludwig Von Mises
Didn’t India buy 200 tons from the IMF last year?
Oops! Sorry. I reread the article.
I don’t think China ever said they would not be buying. I have seen articles in which the IMF claimed there were “no buyers”.
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