« Antwerp Diamond Industry Increasing Security. | Main | On-Line Jewelers Profits Soar! »
U.S. Lawmakers Oppose Sale of IMF Gold Stocks.
Reauters this morning reports that a dozen U.S. lawmakers have told U.S. Treasury Secretary John Snow to oppose proposals for the sale of some of the International Monetary Fund's gold stockpile to pay for debt relief for the world's poor nations.
These 12 senators from U.S. mining states said sales of the IMF's 103 million ounces of gold reserves, the world's third-largest, would hurt gold producers and cause job losses, including in impoverished countries like Peru and Tanzania.
The U.S. Treasury is likely to march in lockstep with the senators' arguments.
"We do not believe it is necessary to sell IMF gold to achieve debt relief for the poorest countries. We will review the IMF report on proposals to fund debt relief when it is released," Treasury spokesman Rob Nichols said.
The letter is signed by senators from the U.S. gold-rich states of Nevada, Colorado, Montana, South Dakota, Idaho, Utah, Alaska, New Mexico, California and Washington.
"We believe that careful consideration must be given to any proposal that could have such adverse effects on this important commodity market, and the businesses and communities in the U.S. and around the world that are affected by it," the senators wrote in the Jan. 31 letter.
The U.S. executive board member to the IMF is barred from voting to sell IMF gold reserves unless the U.S. Congress has approved the move first.
Finance chiefs of the rich Group of Seven nations asked IMF Managing Director Rodrigo Rato last weekend in London to report back by April on proposals for using IMF gold reserves to write off debts of the fund's poorest borrowers.
In the letter, which preceded the G7 London meeting, the senators noted it was the second time in five years that "serious proposals have surfaced that would effectively raid a core reserve asset of the IMF."
The lawmakers said the threat of gold sales in 1999 pushed gold prices to 20-year lows, caused unemployment, while several mines had to close in western U.S. mining states.
The senators said they did not oppose debt relief and urged the U.S. Treasury and IMF to develop "more viable and less disruptive alternatives to IMF gold reserve sales."
"We doubt that IMF gold sales -- which were soundly rejected as a policy matter just five years ago -- will make any more sense today," they added.
Gold traders in anticipation of an IMF move to sell Gold reserves, sold Gold earlier this week to the point where Gold tested it's support level at $411.00. With the liklihood that Gold reserves will not be sold by the IMF in response to the Senators' letter, the metal has strongly rebounded in the last two days to it's current $418.00.
TrackBack
TrackBack URL for this entry:
Comments
What i find not easy is to find a article that can grab my imagination for a time but you most certainly add value. Keep blogging.
Posted by: Migraine Raspoulos on March 31, 2011 8:05 PM
News Headlines And Favorite Topics In New York
Posted by: Christian Louboutin Sandals on April 22, 2011 7:32 AM
i could not concur with everything that is l isted since the very best and worst logos?-but i sure enjoyed reading through about them and i really love the back and forth d iscussions in regards to the l ists. it is wonderful to discover some passion in the layout community!
Posted by: Rosetta stone spanish on April 22, 2011 12:43 PM
Most of these ratings are overrated anyway.
Posted by: Christian Louboutin Pumps on April 23, 2011 1:02 PM
Hands down, Apple's app store wins by a mile. It's a huge selection of all sorts of apps vs a rather sad selection of a handful for Zune. Microsoft has plans, especially in the realm of games, but I'm not sure I'd want to bet on the future if this aspect is important to you. The iPod is a much better choice in that case.
Posted by: Cheap Christian Louboutin on April 24, 2011 10:31 PM
I thought it was going to be some dull previous submit, however it really compensated for my time. I'll post a website link to th is page on my blog. I'm certain my v isitors will locate that very practical.
Posted by: Rosetta stone spanish on April 25, 2011 2:49 PM
Great! It's so hard to seek good high quality info on the web as we speak from knowledgeable sources, it's all wannabe's and reused content with only some exceptions. I hope you retain up the great work and I can be again to read more of your posts in the future!
Posted by: PLR Articles on May 12, 2011 10:37 AM
It is a very interesting post, thanks :)
Posted by: grook on May 28, 2011 6:43 PM
All I can say is keep it up. This weblog is so needed in a time when everyone just wants to talk about how several folks someones cheated on their wife with. I mean, thanks for bringing intelligence back to the web, its been sorely missed. Excellent stuff. Please keep it coming!
Posted by: mens chains on June 12, 2011 2:28 PM
This design is wicked! You definitely know the best way to keep a reader entertained. Between your wit and your videos, I was nearly moved to begin my own blog (well, almost...HaHa!) Wonderful job. I actually enjoyed what you had to say, and far more than that, how you presented it. Too cool!
Posted by: Insulated Lunch Bags on June 12, 2011 2:50 PM