Comments on: IMF Gold to be Used

By: Bill Foord

Bill Foord — Wed, 08 Apr 2009 01:06:51 +0000

There has been a lot of money printing, but compared to the outstanding debt and derivatives of 52 trillion, it too is a drop in the bucket. the Government is a follower it has started quantitative easing after deflation has gained the upper hand. For me, so far deflation is winning.

By: Charles Norville

Charles Norville — Tue, 07 Apr 2009 12:47:44 +0000

I thought that gold used to be held by nations to cover the value of their currency.....now that's all over and therefore the IMF, and others, sells gold to get cash - its not going to give gold bullion to basket case economies, and US$ is the reserve currency but other currencies are probably better in the long term.

DR state that gold is real money, but its the asset worth of economies that are in trouble. What people value is what they can turn into profitability, if you have houses and cars that people can't afford or gainfully employ its a dud.

You put a whole pile of cash money AND gold on the dining room table and say to the family of people, you can have one or the other but not both. If they take the gold they have to actually pay for it but if they take the cash they can pay for it later - isn't that what the IMF does?

Consumerism drives the cost of assets once the consumerism dries up it all over, we are delaying the inevitable - we need a new model(s) of constructive consumerism.

By: Pete

Pete — Tue, 07 Apr 2009 06:52:20 +0000

400 tonnes of gold only equates to about 12billion dollars.

It's a drop in the pond (and sales will be staggered over time too).

IMF has 103 million ounces of gold. 400 tonnes is only about 14 million ounces.

I was excited when I heard about this, because I thought the IMF wouldn't be a major player in gold anymore (I don't like price manipulation, or the potential for it by large institutions). Turns out this amount is pretty insignificant