The Group of Seven rich nations on Saturday approved the sale of gold by the International Monetary Fund from April as part of a broad reform of its budget, Italian Economy Minister Tommaso Padoa-Schioppa said. "There was an acceptance among the G7 that resources should be raised by selling gold," Padoa-Schioppa, who is also the head of the IMF's steering committee (IMFC), told reporters after a meeting of G7 finance ministers in Tokyo.
This news amuses me. The need to manipulate gold markets is very strong with the G7 imperialists. And they are really angry that both communistic Russia and very communist China are using gold as a form of currency base. Not directly but indirectly. This gold is part of their 'sovereign wealth' system. It isn't just the huge accumulations of euros, dollars and yen in their FOREX reserves but accumulating gold. Both Russia and China are big gold producers. Both have internal gold markets that have its own pricing systems. Both use their gold reserves to boost their FOREX holdings.
The horns of dilemma here are easy to spot: if the price of gold drops, of course, all the people trying to evade the 1% interest rate regime being enforced increasingly by the G7 will have no where to go and will be forced to play the G7 game. But Russia and China are not part of this conspiracy. So the gold will flow to them. If they buy up cheaper gold, eventually they will take it all in and the climb in gold will resume if the G7 have 1% interest rates! This dynamic can't be stopped.
If the G7 insist on this regime, the value of gold will climb after 2 years of this sell-off attempt. Meanwhile, gold buyers will have to hold their gold purchases. This buys the G7 time to play this super-low interest game. And time is what they want! Their plan is for this to force all wealth into the depression-style system we see in Japan. This means they can drop prices and 'inflation' will die due to money moving very sluggishly instead of fast, from country to country, bank to bank. Time is money! And low interest means money can sit and die for a long time! And during this time, the bankers can reorganize themselves and clean out their risks and dump it all on tax payers. And they are busy doing this right now! If Russia and China let them.
February 10, 2008
Elaine Meinel Supkis
...na ich hoffe nicht nur Russia and China DON'T let them
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