IMF looks at gold sale options for debt relief

[truthpusher]

http://news.ft.com/cms/s/8c757556-787a-11d9-9961-00000e2511c8.html

IMF looks at gold sale options for debt relief
By Andrew Balls, Chris Giles and Scheherazade Daneshkhu in London
Published: February 6 2005 20:13 | Last updated: February 6 2005 20:13

The International Monetary Fund is preparing a report on the potential sale of a portion of its gold reserves in a move that would help fund debt relief for poor countries but could unsettle the markets by threatening a drop in the price of gold.

<snip>

The IMF values its store of 3,217 tonnes of gold at about $8.5bn (€6.6bn) about a fifth of market value. Poor countries owe about $11bn to the IMF. If the IMF sold large quantities of gold, it could finance the debts owed to it by poor countries. An alternative option to be studied would be to revalue the gold in the IMF's accounts. This would strengthen its balance sheet, against which it could then write off lending to poor countries. But this is seen as an accounting gimmick that would do nothing to free up real resources within the fund. Gordon Brown, UK chancellor, who has long supported making better use of the IMF's gold, said the agreed move was an important step towards debt relief for poor countries, following a G7 meeting that focused on development aid and on Africa.

Gold producing countries sensitive to its price have traditionally opposed sales by the IMF, or by central banks. But Trevor Manuel, South Africa's finance minister, told reporters that South Africa would not necessarily oppose sales, as long as the process was carefully managed. Opposition to gold sales still exists within the G7, however. John Taylor, US Treasury under-secretary for international affairs, said the US was “not convinced that gold sales is a necessary way to do ”.

more:

http://news.ft.com/cms/s/8c757556-787a-11d9-9961-00000e2511c8.html

[FloridaPat]

1. How about debt relief for the taxes payers in the US? When do

we get a break, besides bankruptcy??

[purduejake]

2. You got a break!!!

Nevermind you more than made up for it with increases in local and state taxes, costs of education, and cuts to services.

[SpiralHawk]

3. BushCo to Crucify the US on a "Cross of Gold" ?

"By making the right choices, we can make the right choices for our future."
- George W. Bush

(A Rhetorical Florish Salute to William Jennings Bryan)

[CAcyclist]

4. So much for all those people who rushed to buy gold

in the last 6 months or so - yet another bad investment.

[FloridaPat]

5. Price of gold also depends on price of dollar. If dollar drops to a nickle

gold will be worth a fortune with or without these gold sales.

[Maple]

6. And all those folks who bought gold

at the recent high prices...now have expensive doorstops.

[pilgrimsoul]

7. Hmm...It almost appears as though the IMF anticipates

the dollar to take its big final plunge *very* shortly and is timing a big gold sale to maximize their proceeds. This news, combined with Russia's Euro-switch announcement followed by Condi's immediate *democracy* warning to Russia, G7's nervous-sounding assurances that they have no criticism of U.S. fiscal policy, and China's sudden softening of its position on revaluing the Yuan, should make tomorrow a VERY interesting day in the financial markets.

Hold onto your hats, folks, cuz the caca is about to make contact with the rotating oscillator, and we're all gonna get spattered.

[EC]

8. Geez, first our money is worth shit, now gold......n/t