Tuesday, April 21, 2009

India and China want IMF to sell its $100 Billion Gold Stash

Update below.
It was only 18 days ago that we posted "G20 supports IMF's plan to sell 403 tons of gold". Now it seems that someone wants the sales to be eight times larger. Who is going to be on the receiving end of this wealth transfer?

I should maybe spend more time at the Illuminati Money Fund, I mean imf.org. After all, the U.S. taxpayer put up 23% of the assets.
From MyDigitalFC (India):
India and China may press for the sale of the entire gold reserves of the International Monetary Fund (IMF) to raise money for the least developed countries.

The IMF holds 103.4 million ounces (3,217 tonnes) of gold that, if sold, can fetch about $100 billion.

A draft paper exchanged between New Delhi and Beijing proposes that the gold be sold in bullion markets over a period of two to three years. The money thus raised must be used in tackling poverty in the poorest nations.

“We have been discussing with China a common position on the subject,” a senior finance ministry official told Financial Chronicle.
Both prime minister Manmohan Singh and Chinese president Hu Jintao will have to clear the proposal before the representatives of the two countries can take it up at the IMF spring meeting in June in Washington.
The G20 heads of state meeting in London earlier this month agreed to sell a part of the IMF gold to raise $6 billion for poor countries during 2009-11. This was a component of a $1.1 trillion package worked out by G20.
The World Bank has estimated that over 90 million people may be pushed into poverty in the global economic turmoil.
“We are working on a more ambitious proposal of selling the entire gold as it is an idle asset with the IMF,” said the official.

India and China are looking at three ways of using the money so raised. 1) The $100 billion be invested to improve IMF’s liquidity. 2) The money be committed to improving incomes of the poorest countries. 3) A mix of the first two options be considered....MORE

HT: BloggingStocks who went with the headline "Goldbugs beware! India and China want the IMF to sell all of its gold"

Update: the WSJ had this headline on the 16th:

India Has Not Asked IMF to Sell Gold Reserves

I am reminded of a Warren Buffet quote:

He lied like a Finance Minister on the eve of a devaluation.