Canary in a Gold Mine
Source: GoldSeek, The Mogambo Guru (8/13/09)
". . .by flooding the market with government gold, this short-circuits this "canary in a coal mine" inflation alarm. . ."
An interesting new wrinkle in the new agreement that it will "allow the International Monetary Fund to join as a signatory if it wishes," which it already desperately wishes so it can aggrandize more power by being a "player" with all the fiat currencies it will collect and then be able to wield like a bludgeon.
And this 400 tons of gold per year sounds like a lot, but in reality, how much gold is there?
Well, the article notes that the "gold holdings of the 10 largest signatories total more than 11,000 tons, valued at $350 billion," and I remember writing down that the U.S. has about 8,000 tons of gold and the IMF has 3,217 tons.
For the record, though, one metric ton contains 32,150.72 Troy ounces, so 11,000 tons is 353.661 million ounces of central bank signatory holdings which, at almost $1,000 per ounce, is where I assume they get the valuation of $350 billion.
I say the words "Central Bank Gold Agreement" with such loathing disrespect because this is another slimy, five-year, corrupt deal whereby the gold that governments accumulated over the centuries is now being sold to get a little "spending money," to save a little money by not having to pay to store the gold, and to happily drive down gold's market price.
They want to drive the price of gold down so it won't rise against their currencies, which is what you would normally expect from the inflation resulting from these corrupt, thieving governments creating additional excessive amounts of fiat money to try to buy their way out of the national inflationary bankruptcy they caused.
But by flooding the market with government gold, this short-circuits this "canary in a coal mine" inflation alarm so that us proletariat chumps don't panic at the horror of huge inflations in prices that are usually reflected in the price of gold which, unfortunately, always follow a huge inflation in the money supply.