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.
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