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-- Posted Thursday, 7 April 2005 | Digg This Article

Dear Friend of GATA and Gold:

The Bloomberg story linked below shows that the
statement of U.S. Rep. James Saxton, chairman of
the Joint Economic Committee of Congress,
opposing the sale of gold by the International
Monetary Fund has gotten a lot of notice even as
it has raised some questions.

-- The United States and Britain are allies, so
would the British finance minister be agitating
so much for selling the IMF's gold if the United
States was really against it?

-- Saxton says selling the IMF gold "would amount to
a hidden appropriation from the donor countries that
were the original source of the gold." But wouldn't
the object of selling the gold -- forgiveness of the
IMF's bad loans -- amount to the same thing, a tax
on the IMF's donor countries, no matter how the loans
were written off?

-- Indeed, isn't the link between forgiving debt for
poor countries and selling the IMF's gold completely
bogus in a fiat economic system? After all, the IMF's
member nations could simply print new money to
compensate the IMF for any debts written off. And if
the IMF wants to sell gold -- to exchange it for
other currencies -- it can just sell gold; it hardly
needs the pretext of forgiving the debt of poor
countries.

-- Since the U.S. government has been the
underwriter of the worldwide gold price suppression
scheme, what explains its opposition to the IMF
gold sales? Is the U.S. just setting itself up to
be persuaded otherwise at the last minute, going
along with gold sales to smash the gold price
again, this time extra-hard? Or has the IMF gold,
presumably long in the U.S. government's custody,
already been largely expended in the gold price
suppression scheme without the knowledge of the
IMF and its other members? If so, a decision to
sell it would only disclose that it wasn't there
anymore. That would be embarrassing.

Damned if GATA knows. But we do know three things:

First, in a fiat money regime the only purpose of
government gold reserves is manipulation of
currency values and the gold price. At least the
Reserve Bank of Australia has admitted as much.

Second, the whole world economic order is built
on making sure that the markets never know
exactly who really owns how much gold, gold being
the most powerful stuff.

And third, gold doesn't really care who owns it.
Get some and stash it in your basement and you
soon might find yourself more powerful than a
central bank that loaned all its gold to
JPMorganChase.

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

* * *

Gold Prices Rise; U.S. May Veto Proposed Bullion Sale by IMF

By Choy Leng Yeong
Bloomberg News Service
Wednesday, April 6, 2005
-- Posted Thursday, 7 April 2005 | Digg This Article

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