Uh Oh! China Buying GOLD BULLION?!? Bye-Bye Miss American Dollar Pie!

[jtabeb]

Re: Uh Oh! China Buying GOLD BULLION?!? Bye-Bye Miss American Dollar Pie!

Looking at it from a purely US perspective I would probably try to justify that he is wrong. So who holds the cards and which cards have yet to be played??

I never said we (the US) would feel great about it, but it is a very small price to pay vs having $1.8T in USD repatriate all at once.

Anvil, meet hammer. Hammer, pound Anvil.

My whole point is that I think China wants more gold reserves and the have the LEVERAGE to get what they want. Plus if they get the IMF gold, we get to keep most of ours (I think we have 400 tons registered there from the US).

So instead of the US screwing the world, it would be more like the US and China screwing the world. (at least that's progress, right?)

[Louie.G]

Re: Uh Oh! China Buying GOLD BULLION?!? Bye-Bye Miss American Dollar Pie!

My whole point is that I think China wants more gold reserves and the have the LEVERAGE to get what they want. Plus if they get the IMF gold, we get to keep most of ours (I think we have 400 tons registered there from the US).

So instead of the US screwing the world, it would be more like the US and China screwing the world. (at least that's progress, right?)

I agree, and also believe China will seek more Gold reserves. To me it makes sense for them to do that. I have read the 400 ton IMF figure too so if they want to hold 4,000 ton then there is 3,000 ton to go.

Yep it is progress in one sense of the word, but I wait to see who is holding the most aces. From where I sit, it seems a close call and who will join the table next. :confused:

[c1ue]

Re: Uh Oh! China Buying GOLD BULLION?!? Bye-Bye Miss American Dollar Pie!

Not having them trash our economy by mass dumping of dollars perhaps?

You're just digging your own hole deeper.

China dumping their Treasuries for IMF gold accomplishes both denying the US a secondary source for hard currency (former IMF gold) AND gets China out of the US dollar incestuous relationship.

How exactly again does this help the US such that the US veto vote on IMF matters is not exercised.

Now if your name was Guo Zhang, I could see where the viewpoint is coming from...

[jtabeb]

Re: Uh Oh! China Buying GOLD BULLION?!? Bye-Bye Miss American Dollar Pie!

You're just digging your own hole deeper.

China dumping their Treasuries for IMF gold accomplishes both denying the US a secondary source for hard currency (former IMF gold) AND gets China out of the US dollar incestuous relationship.

How exactly again does this help the US such that the US veto vote on IMF matters is not exercised.

Now if your name was Guo Zhang, I could see where the viewpoint is coming from...

Let's say I AM Guo Zhang and I threaten (through official channels) to Dump $1T of UST onto the open market if I don't get that 400 Tons of IMF gold. Are you REALLY CLAIMING that the US would STILL VETO?

If anything this little "crisis" episode is proving that American Power and Influence are on the wane. Are you ACTUALLY claiming that the US would prefer a Stampede out of the dollar vs something more controlled.

If so, that's fine. In my job I get to see a lot of the cards we as a country are holding, ain't going to debate and 'nough said.

[rabot10]

Re: Uh Oh! China Buying GOLD BULLION?!? Bye-Bye Miss American Dollar Pie!

As I said, it would be a "bribe" in exchange for china not dumping it's 1.8 or so Trillion in USD reserves.

jtabeb good point - but China is STUCK with the dollar just like a poker player down 30k for the day, he can't leave the table.

We all go down together, they can't dump just yet.

In fact I think that China is screwed big time. All they have is people willing to work no natural anyting - all done for them.

jmho
rick

[jtabeb]

Re: Uh Oh! China Buying GOLD BULLION?!? Bye-Bye Miss American Dollar Pie!

jtabeb good point - but China is STUCK with the dollar just like a poker player down 30k for the day, he can't leave the table.

We all go down together, they can't dump just yet.

In fact I think that China is screwed big time. All they have is people willing to work no natural anyting - all done for them.

jmho
rick

I don't think you give them enough credit to "creatively" pitch a major temper tantrum. One thing I've learned about warfare, you're almost never able to take away ALL of the opponents counter-measures (killing them all excepted, of course).

But what do I know?

JMHO, too.

V/R

JT

[DaveBrown42]

Re: Uh Oh! China Buying GOLD BULLION?!? Bye-Bye Miss American Dollar Pie!

Let's say I AM Guo Zhang and I threaten (through official channels) to Dump $1T of UST onto the open market if I don't get that 400 Tons of IMF gold. Are you REALLY CLAIMING that the US would STILL VETO?

I'd imagine in that situation that the US government would immediately declare all Chinese-held UST to be "temporarily void". Reasons given could be "combating international monetary terrorism" or "a full economic embargo of China due to their human rights abuses", etc. US politicians would find a way to justify our default as a way of "defending our values". (Alternatively the threat of the such might be enough to do the job.)

[Verrocchio]

Re: Uh Oh! China Buying GOLD BULLION?!? Bye-Bye Miss American Dollar Pie!

Jateb, you have described a possible future scenario. I would agree that it is possible, but the probability of it coming to pass is unknowable. My experiences in Asia, including the PRC and ROC, tells me that, yes, the Chinese like gold very much. But, President Hu Jin-tao and his government face potentially very serious domestic difficulties, and PRC government officials will do whatever they must to avoid regime change. Although evidence of miraculous economic progress is overwhelming to Western businesspersons and tourists, a huge number of Chinese are still live below the official poverty level, and the gap between urban and rural income continues to expand. If the enormous army of young construction and factory workers are thrown out of work by a disruption of the present economic relationship, regime change may become a highly probable future scenario -- and previous regime change in China, as you probably know, Jateb, has been both costly and bloody to the country and to the defeated.

To wind this up using your metaphor of a card game, the PRC, like the USA, does have a few strong cards. It cannot be said, however, that they hold no weak cards.

[Verrocchio]

Re: Uh Oh! China Buying GOLD BULLION?!? Bye-Bye Miss American Dollar Pie!

I don't think you give them enough credit to "creatively" pitch a major temper tantrum.

Whatever cards they are holding, the Chinese are masterful players. Has everyone forgotten the Hainan Island Incident? In April of 2001, approximately five months before the September 11 Attacks, two Chinese jets forced a US Navy recon plane to land on Hainan Island. The Chinese claimed that the EP-3 was in their airspace and that it swerved into one of the J-8 fighters. Both of these claims were considered doubtful. The outcome: The Navy crew was held on Hainan Island for 10 days and was not released until an apology letter from the US government arrived.

[Jay]

Re: Uh Oh! China Buying GOLD BULLION?!? Bye-Bye Miss American Dollar Pie!

It strikes me that China has far more to lose if they dump UST holdings than we do and that is why they put up with the system. Chaos and revolution would be real possibilities in the turmoil that follows. They will do anything to maintain stability, as shown explicitly by their actions taken in 1989. In fact, the Fed's greatest triumph is exporting fear to other powers.

[c1ue]

Re: Uh Oh! China Buying GOLD BULLION?!? Bye-Bye Miss American Dollar Pie!

Let's say I AM Guo Zhang and I threaten (through official channels) to Dump $1T of UST onto the open market if I don't get that 400 Tons of IMF gold. Are you REALLY CLAIMING that the US would STILL VETO?

A very feeble straw man argument.

Why would China threaten to dump its Treasuries if it couldn't get the IMF gold?

A completely vacuous and stupid hypothesis.

Even were China to threaten to dump its Treasuries, the target would not be the IMF gold, but rather the Fort Knox gold.

The point again which you still failed to answer is: Why would America allow the IMF to give up its hard currency backing, when said hard currency backing is still considered useful - at least given that CBs the world over still hold lots of gold?

What possible short or long term benefit would be had by giving the IMF $9B in Treasuries, when it already makes loans in multiples of that number? Doubly so when the IMF hard assets have historically been used for US financial purposes?

If anything this little "crisis" episode is proving that American Power and Influence are on the wane. Are you ACTUALLY claiming that the US would prefer a Stampede out of the dollar vs something more controlled.

If so, that's fine. In my job I get to see a lot of the cards we as a country are holding, ain't going to debate and 'nough said.

I'm confused how your seeing US military assets has anything to do with a completely nonsensical theory which continues to be unburdened by either reason or fact.

I'm also very confused as to how an IMF dump of gold is somehow a more controlled stampede out of the dollar: it in fact would be a GREATER stampede out of the dollar as the IMF is one of the premier world organizations on which the dollar reserve currency is built.

Very few actions would clearly demonstrate the end as a neutering of the IMF's hard currency reserve. Or do you not understand why the IMF even has gold to begin with?

But then again, perhaps the last sentence says it all:

I believe what I believe, and I don't need no stinking debate to change my mind.

[jtabeb]

Re: Uh Oh! China Buying GOLD BULLION?!? Bye-Bye Miss American Dollar Pie!

A very feeble straw man argument.

Why would China threaten to dump its Treasuries if it couldn't get the IMF gold?

A completely vacuous and stupid hypothesis.

Even were China to threaten to dump its Treasuries, the target would not be the IMF gold, but rather the Fort Knox gold.

The point again which you still failed to answer is: Why would America allow the IMF to give up its hard currency backing, when said hard currency backing is still considered useful - at least given that CBs the world over still hold lots of gold?

What possible short or long term benefit would be had by giving the IMF $9B in Treasuries, when it already makes loans in multiples of that number? Doubly so when the IMF hard assets have historically been used for US financial purposes?



I'm confused how your seeing US military assets has anything to do with a completely nonsensical theory which continues to be unburdened by either reason or fact.

I'm also very confused as to how an IMF dump of gold is somehow a more controlled stampede out of the dollar: it in fact would be a GREATER stampede out of the dollar as the IMF is one of the premier world organizations on which the dollar reserve currency is built.

Very few actions would clearly demonstrate the end as a neutering of the IMF's hard currency reserve. Or do you not understand why the IMF even has gold to begin with?

But then again, perhaps the last sentence says it all:

I believe what I believe, and I don't need no stinking debate to change my mind.

You pissed me off now.

Okay here goes:

1. "A very feeble straw man argument."

yours, not mine, you can eat your own spear on that one.

2. "Why would China threaten to dump its Treasuries if it couldn't get the IMF gold?"

Doesn't HAVE to be IMF, but the will need/desire/demand to transfer dollar holdings into gold, IMF seems like the most likely choice. They have already set the stage politically for the gold sales with all the public announcements about this being possible. A SUDDEN-STOP is MUCH more likely than a nice BWIII solution from the G-20. That means Time is Critical for China, If the US de-values unilaterally (monetizes w/out stereilization) China's foreign reserves turn back into a pumpkin. China has to get some kind of massive, easily acquireable, and discreet souce of gold to add to their reserves BEFORE all the other CBs start to increase the Gold reserves. That competition is a looser for china. The CBs holding the most gold will "winners" and those holding the most dollars will be "loosers". China obviously faces the biggest financial risk here because the their very large dollar holdings in realtion to their very small gold holdings.

The word "threat" is key here as well, which you totally miss.

Economic MAD (China/US) is going to be necessary for China to achive it's economic objectives. I was pointing out that this is not necessecarily bad for the US. The reason being is that EJ has pointed out that the Dollars requried to depreciate the dollar allready exist within the world finncancial system. The trick is to get those dollars repatriated so that the desired inflation/currency devaluation can take place.



FRED said
"Yes, that's why the videos of Tricky Dick!

That was back when the US was a net creditor. How to pull that off today as a net debtor? Ka-Poom Theory says this time the US can let its creditors devalue to the dollar instead of counting on "those evil currency speculators" to do it. How?

Step 1: Promise to never execute unsterilized debt monetization and promise full cooperation and coordination among US trade partners on the execution of policies to cope with the global crisis.

Step 2: Unilaterally execute unsterilized debt monetization."

I Agree totally with that projection. The Chinese would have to be a bunch of contry bumpkins not to see this comming. So they will be forced to Make their play PREEMPTIVELY, BEFORE the US can act unilaterally.

The US will need dollars for it's bailout (borrowing), IMF is likely source of dollars, China is likely to be the source of dollars to the IMF.

This is a quid pro quo that the Chinese will seek, due to their natural desire to not be left holding the bag and a desire to not have to react AFTER the US acts unilaterally when there will be very few options left for them to persue.


3. "A completely vacuous and stupid hypothesis."

A completely vacuous and stupid counter-argument

4."The point again which you still failed to answer is: Why would America allow the IMF to give up its hard currency backing, when said hard currency backing is still considered useful..."

SIMPLE- Cost/benefit Analysis. Furthers an Immediate economic objective (funding the bailout of the US financial system, preserving the opportunity for the US to secure funding for a releatively longer period of time for said objective, and keeps the Chinese on-board by NOT PISSING them off totally). A reason for them to play along is a strong incentive for them to participate/acquesce vs. them being shut out of the loop completely at a major competitive disadvantage which would only force them to look for an alternative solution which would not be so beneficial to the US)

5. "What possible short or long term benefit would be had by giving the IMF $9B in Treasuries, when it already makes loans in multiples of that number?"
I'm not saying that the exchange would take place at par value to the gold in question. My thinking is that this would take place at the future DISCOUNTED dollar price but the transaction would take place today. China has to pay more than the gold market price today. Why in god's name would they do this? Very simple. The get the future time value of money secured buy buying the gold. They actually get the gold NOW and don't have to worry about competing for it in the future. The IMF and the US get PRESENT time value of the Funds to use in the finacial bailout. Like I said, meeting the policy objectives of BOTH sides will require the acknoledgment of the differing time prefreances of money that each has.

6. "I'm confused how your seeing US military assets has anything to do with a completely nonsensical theory which continues to be unburdened by either reason or fact"

Here you go, go learn something
You forced me to get "doctrinal" on your buttocks.

Here is a Primer on the Economic Instrument of National Power for you: (think china too, not just the US)
http://www.stormingmedia.us/99/9943/A994363.html
http://www.dtic.mil/doctrine/jel/jfq_pubs/2010.pdf
http://www.rand.org/pubs/conf_procee...RAND_CF231.pdf
http://www.rand.org/pubs/conf_proceedings/CF251/

7. "I'm also very confused as to how an IMF dump of gold is somehow a more controlled stampede out of the dollar"

China is the Risk Factor as the are the biggest dollar holder that is least integrated with our political objectives. A freindly rival that could turn unfriendly if necessary. No "threat" of a mad rush by China buys time, esp if they get taken care of so that they will hold their touges publically.

8."I believe what I believe, and I don't need no stinking debate to change my mind"

Yeah, that's exactly what I said, Right. (Who's comming up with strawmen again?)


More like "If so, that's fine. In my job I get to see a lot of the cards we as a country are holding, ain't going to debate and 'nough said." That would be a direct quote.

What I should have said is "Can't debate you fully in a public forum".

Well the one good thing for me in all this was that I got to get recurrent on my open-source collection skills.

[c1ue]

Re: Uh Oh! China Buying GOLD BULLION?!? Bye-Bye Miss American Dollar Pie!

JT,

You are done.

Your view seems to be that the US must acquiesce to sell IMF gold to China because China holds US dollar Treasuries.

Yet you've failed to answer a number of questions on:

1) Why the US would have to or want to do so, especially given the historical (and well documented) role of the IMF gold being counted as a US gold reserve in the waning years of Bretton Woods. Or are you disputing that the US is not the 'veto' voting power in the IMF?

2) Why the IMF itself would want to give up its 400 tons of gold.

3) Why 400 tons of gold make any difference whatsoever to China - the $9B present value of this gold doesn't even cover 1 month's worth of China trade surplus. Plus China already internally produces somewhere around 300 tons of gold a year.

So if 1) = 2) = 3), then yes, I am repeating myself.

Or, perhaps you are refusing to entertain any counter-arguments to your thesis.

[jtabeb]

Re: Uh Oh! China Buying GOLD BULLION?!? Bye-Bye Miss American Dollar Pie!

JT,

You are done.

Your view seems to be that the US must acquiesce to sell IMF gold to China because China holds US dollar Treasuries.

Yet you've failed to answer a number of questions on:

1) Why the US would have to or want to do so, especially given the historical (and well documented) role of the IMF gold being counted as a US gold reserve in the waning years of Bretton Woods. Or are you disputing that the US is not the 'veto' voting power in the IMF?

2) Why the IMF itself would want to give up its 400 tons of gold.

3) Why 400 tons of gold make any difference whatsoever to China - the $9B present value of this gold doesn't even cover 1 month's worth of China trade surplus. Plus China already internally produces somewhere around 300 tons of gold a year.

So if 1) = 2) = 3), then yes, I am repeating myself.

Or, perhaps you are refusing to entertain any counter-arguments to your thesis.

See my edit smart-ass

You pissed me off now.

Okay here goes:

1. "A very feeble straw man argument."

yours, not mine, you can eat your own spear on that one.

2. "Why would China threaten to dump its Treasuries if it couldn't get the IMF gold?"

Doesn't HAVE to be IMF, but the will need/desire/demand to transfer dollar holdings into gold, IMF seems like the most likely choice. They have already set the stage politically for the gold sales with all the public announcements about this being possible. A SUDDEN-STOP is MUCH more likely than a nice BWIII solution from the G-20. That means Time is Critical for China, If the US de-values unilaterally (monetizes w/out stereilization) China's foreign reserves turn back into a pumpkin. China has to get some kind of massive, easily acquireable, and discreet souce of gold to add to their reserves BEFORE all the other CBs start to increase the Gold reserves. That competition is a looser for china. The CBs holding the most gold will "winners" and those holding the most dollars will be "loosers". China obviously faces the biggest financial risk here because the their very large dollar holdings in realtion to their very small gold holdings.

The word "threat" is key here as well, which you totally miss.

Economic MAD (China/US) is going to be necessary for China to achive it's economic objectives. I was pointing out that this is not necessecarily bad for the US. The reason being is that EJ has pointed out that the Dollars requried to depreciate the dollar allready exist within the world finncancial system. The trick is to get those dollars repatriated so that the desired inflation/currency devaluation can take place.



FRED said
"Yes, that's why the videos of Tricky Dick!

That was back when the US was a net creditor. How to pull that off today as a net debtor? Ka-Poom Theory says this time the US can let its creditors devalue to the dollar instead of counting on "those evil currency speculators" to do it. How?

Step 1: Promise to never execute unsterilized debt monetization and promise full cooperation and coordination among US trade partners on the execution of policies to cope with the global crisis.

Step 2: Unilaterally execute unsterilized debt monetization."

I Agree totally with that projection. The Chinese would have to be a bunch of contry bumpkins not to see this comming. So they will be forced to Make their play PREEMPTIVELY, BEFORE the US can act unilaterally.

The US will need dollars for it's bailout (borrowing), IMF is likely source of dollars, China is likely to be the source of dollars to the IMF.

This is a quid pro quo that the Chinese will seek, due to their natural desire to not be left holding the bag and a desire to not have to react AFTER the US acts unilaterally when there will be very few options left for them to persue.


3. "A completely vacuous and stupid hypothesis."

A completely vacuous and stupid counter-argument

4."The point again which you still failed to answer is: Why would America allow the IMF to give up its hard currency backing, when said hard currency backing is still considered useful..."

SIMPLE- Cost/benefit Analysis. Furthers an Immediate economic objective (funding the bailout of the US financial system, preserving the opportunity for the US to secure funding for a releatively longer period of time for said objective, and keeps the Chinese on-board by NOT PISSING them off totally). A reason for them to play along is a strong incentive for them to participate/acquesce vs. them being shut out of the loop completely at a major competitive disadvantage which would only force them to look for an alternative solution which would not be so beneficial to the US)

5. "What possible short or long term benefit would be had by giving the IMF $9B in Treasuries, when it already makes loans in multiples of that number?"
I'm not saying that the exchange would take place at par value to the gold in question. My thinking is that this would take place at the future DISCOUNTED dollar price but the transaction would take place today. China has to pay more than the gold market price today. Why in god's name would they do this? Very simple. The get the future time value of money secured buy buying the gold. They actually get the gold NOW and don't have to worry about competing for it in the future. The IMF and the US get PRESENT time value of the Funds to use in the finacial bailout. Like I said, meeting the policy objectives of BOTH sides will require the acknoledgment of the differing time prefreances of money that each has.

6. "I'm confused how your seeing US military assets has anything to do with a completely nonsensical theory which continues to be unburdened by either reason or fact"

Here you go, go learn something
You forced me to get "doctrinal" on your buttocks.

Here is a Primer on the Economic Instrument of National Power for you: (think china too, not just the US)
http://www.stormingmedia.us/99/9943/A994363.html
http://www.dtic.mil/doctrine/jel/jfq_pubs/2010.pdf
http://www.rand.org/pubs/conf_procee...RAND_CF231.pdf
http://www.rand.org/pubs/conf_proceedings/CF251/

7. "I'm also very confused as to how an IMF dump of gold is somehow a more controlled stampede out of the dollar"

China is the Risk Factor as the are the biggest dollar holder that is least integrated with our political objectives. A freindly rival that could turn unfriendly if necessary. No "threat" of a mad rush by China buys time, esp if they get taken care of so that they will hold their touges publically.

8."I believe what I believe, and I don't need no stinking debate to change my mind"

Yeah, that's exactly what I said, Right. (Who's comming up with strawmen again?)


More like "If so, that's fine. In my job I get to see a lot of the cards we as a country are holding, ain't going to debate and 'nough said." That would be a direct quote.

What I should have said is "Can't debate you fully in a public forum".

Well the one good thing for me in all this was that I got to get recurrent on my open-source collection skills.

[Louie.G]

Re: Uh Oh! China Buying GOLD BULLION?!? Bye-Bye Miss American Dollar Pie!

JT,

You are done.

Your view seems to be that the US must acquiesce to sell IMF gold to China because China holds US dollar Treasuries.

Yet you've failed to answer a number of questions on:

1) Why the US would have to or want to do so, especially given the historical (and well documented) role of the IMF gold being counted as a US gold reserve in the waning years of Bretton Woods. Or are you disputing that the US is not the 'veto' voting power in the IMF?

2) Why the IMF itself would want to give up its 400 tons of gold.

3) Why 400 tons of gold make any difference whatsoever to China - the $9B present value of this gold doesn't even cover 1 month's worth of China trade surplus. Plus China already internally produces somewhere around 300 tons of gold a year.

So if 1) = 2) = 3), then yes, I am repeating myself.

Or, perhaps you are refusing to entertain any counter-arguments to your thesis.

1. US needs China much more than China needs the US, has been that way for years, Even Clinton admitted it publicly while in power. The IMF needs USD, so here we have the 9 of hearts.

OK straight from the horses mouth

2.http://www.imf.org/external/np/exr/faq/goldfaqs.htm
Strictly limited gold sales (403.3 metric tons) are being discussed by the membership of the IMF as part of a package of expenditure and income measures to put the IMF's finances on a sustainable basis. No Executive Board decision to sell gold has been taken.

Or maybe this deal will be acceptable - http://www.imf.org/external/np/exr/facts/gold.htm
Off-market transactions in gold (1999-2000). In December 1999, the Executive Board authorized off-market transactions in gold of up to 14 million ounces to help finance the IMF's participation in the Heavily Indebted Poor Countries (HIPC) Initiative. Between December 1999 and April 2000, separate but closely linked transactions involving a total of 12.9 million ounces of gold were carried out between the IMF and two members (Brazil and Mexico) that had financial obligations falling due to the IMF. In the first step, the IMF sold gold to the member at the prevailing market price and the profits were placed in a special account invested for the benefit of the HIPC Initiative. In the second step, the IMF immediately accepted back, at the same market price, the same amount of gold from the member in settlement of that member's financial obligations. In the end, these transactions left balance of the IMF's holdings of physical gold unchanged.

and then.... ta daaahhhh http://www.imf.org/external/np/exr/faq/goldfaqs.htm#q3
Q. Why is the IMF considering gold sales?
A.
• The IMF's finances have become unsustainable following a large decline in credit outstanding in recent years. In the absence of measures, an income shortfall of $165 million in FY2007 is expected to widen to about $400 million by FY2010.
• The report of the Committee of Eminent Persons chaired by Andrew Crockett (the Crockett Committee) recommended that the IMF adopt a new income model with more diverse sources of income. (Other committee members are Mohamed A. El-Erian, Alan Greenspan, Tito Mboweni, Guillermo Ortiz, Hamad Al-Sayari, Jean-Claude Trichet, and Zhou Xiaochuan).
• One of the income sources the Committee proposed is the creation of an endowment funded from the proceeds of strictly limited gold sales to be carried out within safeguards to avoid disruption of the gold market (see this question).
Q. Has the IMF decided to sell gold?
A.
• No Executive Board decision to sell gold has been taken. Under the Articles of Agreement, a decision to sell gold requires an 85 percent majority of the total voting power.
• The United States authorities have informed the IMF that U.S. Congressional authorization by law would be required before the U.S. Executive Director could support a decision for the IMF to sell gold.
• The United States Treasury announced on February 25, 2008 that it will seek authority from Congress for a limited sale of gold, consistent with the Crockett Committee's recommendation.
Q. What is the expected volume of gold sales?
A.
• The Crockett Committee recommended that gold sales be strictly limited to the gold the IMF has acquired after the Second Amendment, which amounts to 12.97 million ounces (403.3 metric tons), equivalent to one-eighth of the IMF's total gold holdings.
• As noted above, there is no provision in the Articles to restitute this portion of the IMF's gold holdings to members of the IMF.

There is a queen of hearts, now where are the aces or will we get a full house??.


3. 400 tons of gold is 10% of what China ultimately seek to have. They now seek an further 3000 tons They would try to buy more from thge IMF if the IMF had more. Thus my comment as to who will join the table next.

The USA has been pissing China off for years, even bombed their Embassy by mistake. China has a long memory and are long term thinkers. I am sure they will not let the US sucker them into another loss loss situation.

Hope that helps with some of your issues. As EJ says, we are seeing the death of the FIRE Economy. The rules are changing as is the playing field and the design of the cards. Old rules, beliefs, systems and procedures don't necessarily work the same any more.

Cheers