Gold Prices Never Recovered From an IMF Sale: Why?
|December 29, 2013||Posted by Staff under Financial|
A 2013 excerpt of Agence France-Presse Oct 10.
The International Monetary Fund announced it has harnessed windfall gold profits from member countries to fund loans to the world’s poorest countries in the coming years.
The IMF said that 151 of its 188 member countries had pledged more than 90 percent of the roughly $2.7 billion in windfall profits remaining from a gold sale to reduce poverty.
The IMF offers lending under flexible conditions — currently at a zero interest rate — to low-income countries.
The IMF sold 403.3 metric tons of gold in 2009-2010.
But with world gold prices high at the time following the 2008 global financial crisis, the sales fetched more than the IMF predicted, generating windfall profits of $3.8 billion.
Ed. Notes: During scary times, many people get rid of currency and stock up on gold, behavior that bankers don’t like, since they make their money off people borrowing and remaining dependent upon currency. While gold did rise this recent recession, it did not rise as high as perhaps it should have during a downturn labeled “the Great Recession”. What kept the price of gold from soaring thru the roof was the above sale of tons of gold by the IMF, ostensibly to have cash for poor nations, but could the real motive have been to keep gold from displacing the official currencies of nations?
Also, does creating debt, even at zero interest, create prosperity? Or, does it merely distract attention from the real causes underlying endemic poverty and from the real solutions? The real problems are lack of owner occupancy and of honest dealings. How is lending to corrupt elites supposed to fix that? It never has before.
If rich nations really wanted to help poor nations, they’d allow true free trade and set a better example at home, a model of economic justice that could be copied everywhere — a geonomy of no corporate welfare, no taxes on our efforts, no privatized “rents”, and a total and equal sharing of the worth of Earth. Then hello prosperity, bye-bye debt, gold, and the rest of distracting non-solutions.