By: Jean Stoner
When Obama was elected, one of the first things he did was give $108 Billion dollars to the International Monetary Fund, (IMF).
The Obama administration has pushed a bill through the U.S. House of Representatives approving $106 billion in supplemental funding, primarily for the Iraq and Afghanistan ‘security’ efforts, but attached to it was also an expanded credit facility for the International Monetary Fund (IMF) of a massive $108 billion which included an agreement to allow U.S,. members of the IMF Board to agree the proposed $13 billion sale of 400 tons of IMF gold to shore up its finances. ….
…If there is no renewal of the CBGA, that would send a tremendously bullish signal to the gold price, at a time today when there are many more actors on the buy-side (such as private investors) and an obviously slowing interest to sell.
….”This would boost gold’s status as a reserve asset, giving holders greater flexibility in how they bought and sold it. It would also encourage other Central Banks with large forex reserves but little gold (such as China) to buy. After all who wants to buy something for which they need an Agreement in order to re-sell?”
……. But back to the U.S. Moves. Writing in the Wall Street Journal, economist Judy Shelton comments: “The Obama administration went to great lengths to get the IMF its billions. Last week, congressional leaders received a letter that made a firm connection between global economics and global security. “We know from the 1930s that a protracted global economic slump can foster undesirable and unforeseeable reactions to hardship and adversity,” it stated. “Financial hardship and poverty breed desperation, which helps terrorist networks to attract new recruits with messages of hate, violence and intolerance.” The letter then urged Republicans and Democrats to support the President’s request for IMF funding. “We believe that the current instability poses a significant risk to the long-term prosperity and security of the United States.” It was signed by Secretary of State Hillary Clinton, National Security Adviser James Jones, and, most notably, Secretary of Defense Robert Gates.”
President Obama wrote a letter to Speaker Pelosi requesting funds for the IMF.
This step is crucial for U.S. economic interests. Many of the developing countries that would benefit from the NAB expansion are experiencing severe economic decline and a massive withdrawal of capital. Should the situation become worse, and should the IMF not be in a position to stem the crisis, currencies could collapse. The experience with the Asian financial crisis shows that such a massive failure would be a catalyst for steeper drops in U.S. growth, jobs, and exports.
This proposal, first discussed at the international level at the recent G-20 meetings in London, came after broad consultation with Congress. The U.S. expansion of $100 billion in the NAB would be part of an overall international expansion of $500 billion. We committed to this expansion, and other countries are looking to the United States to deliver on our commitment.
Ah, transparency. Perhaps you’ve read that the new era of candor in government spending has arrived. Except, apparently, when it comes to the $750 billion that the Obama Administration and other nations have agreed to provide the International Monetary Fund. In this case, it’s all opacity all the time.
At the G-20 meeting in April, the world’s big shots promised to provide $500 billion under credit lines to the IMF known as “new arrangements to borrow.” The U.S. share was said to be $100 billion, which last week we learned is actually $108 billion. The Obama Administration is now asking Congress to appropriate the cash, except that the Congressional Budget Office is only scoring the cost at $5 billion. How so? Because the transaction is being called an “exchange of assets,” which means the U.S. gives the IMF the $108 billion and the IMF gives the U.S. a promissory note. Which raises a question: If it costs so little, why not make it $200 billion. Or a trillion? It’s free!
Keep this in mind, because there is math later.
- Obama Bailed out Citi, Twice so far…
The U.S. gave up billions in tax money in deal for Citigroup’s bailout repayment.
The federal government quietly agreed to forgo billions of dollars in potential tax payments from Citigroup as part of the deal announced this week to wean the company from the massive taxpayer bailout that helped it survive the financial crisis.
After the bailout and the forgoing of repayment, Soros buys Citi at a huge discount. $1,4 Billion Dollars. We lost all that money. That’s only the beginning.
He bought Citigroup (C), now one of the top 5 holdings.
Not only does George Soros own Citi, but guess who is his biggest shareholder?
None other than Prince Al-Waleed bin Talal. It was Al-Waleed who bankrolled Obama all his life. Khalidi’s boss & son to the king Obama bowed to and who just bought voting stock in Fox news’ parent company Murdoch’s NewsCorp.
Saudi Arabian prince Alwaleed bin Talal has come to the rescue of Citigroup with a much-needed cash injection today.
The surprise turnaround ended a two-year selloff that has wiped more than $200bn (£135bn) from the bank’s market value.
The Saudi prince will increase his stake from about 4 to 5% in the coming days.
The move initially filled investors with confidence and sparked a buying spree before the bell. The shares surged 25 cents to $6.65, but then fell back to tumble by another 17.5%. Yesterday, they fell more than 22% in a single session while the stock is down more than 90% since 2006.
Based on Wednesday evening’s closing price, the prince plans to invest about $349m of his fortune in Citigroup shares.
In a statement released at 9am in New York, Talal said he believed Citi’s shares were “dramatically undervalued” and expressed “full and complete support to Citi management” including the embattled chief executive, Vikram Pandit.
Remember Citi is Rahm’s baby. So now that we have covered the Citi angle, let’s talk about what they are up to.
US billionaire George Soros has more than doubled his investment in gold, despite calling it the “ultimate bubble” just weeks ago.
Mr Soros’ investment vehicle Soros Fund Management increased its holding in SPDR Gold Trust to 6.2 million shares, worth $663m (£425m) at the end of 2009.
The gold conspiracy world is a buzz with recent articles from Rob Kirby about tungsten bars that were plated with gold. According to Kirby’s sources 1.3M-1.5M these 400oz bars currently reside in Fort Knox as well as have been sold into the global gold markets over the past 15-20 years. The article can be found here: http://news.goldseek.com/GoldSeek/1258049769.php
Lump this together with GATA’s work in exposing the secret manipulation of the price of gold and you add jet fuel to the gold conspiracy inferno.
As reported in The Daily Gold, by Harvey Organ:
The above will help explain why I cannot balance supply and demand of gold. We know that demand is somewhere around 4500 tonnes of gold and supply around 2400 tonnes and thus the deficit was funded with supplies from central banks. The above ground gold supplied by the central banks came through the leasing process.
And his final comment on Campaign for Liberty:
Is this story for real? Hard to say, but given the history of manipulation of gold by the Federal Reserve (e.g., see http://www.zerohedge.com/article/smoking-gun-fed-controlling-gold, and www.gata.org), how will we know unless we carry out a full audit of the Federal Reserve?
“Gold futures came under further pressure Thursday after the International Monetary Fund said it would sell another 191.3 metric tons of gold. The IMF has already sold the rest of the 403.3 tons of gold it pledged to put on the market in September.
The IMF said it will sell the remaining gold in a “phased way” to prevent market disruption and undue pressure on prices, but gold futures were off more than $13 to $1,107 an ounce in early trading, extending declines from an all-time nominal high of about $1,180 set late last year. The exchange-traded fund SPDR Gold Trust Gs (GLD) has declined more than 8% from a 52-week high set in early December.
The sale totals about $105 Billion dollars worth of Gold.
(Remember we gave them $108 Billion dollars)
Finally, here is the story about China selling treasury notes in order to buy Gold.
“In regards to whether or not China truly sold down its holdings of U.S. treasuries recently, the situation remains a bit murky. But Citi’s Alan Heap thinks it happened for sure.
Moreover, he thinks China has a plan for the cash they pulled out of the U.S. — They’ll use it to buy 191 tonnes of gold from the IMF.”
Alan Heap @ Citi: The IMF announcement that the fund intends to sell 191t of gold sent a quiver through the market last week. However there was nothing new here. The gold is the residual from the planned sale of 403 tonnes which will partially finance new loans to developing countries.
The bank said that sales would be phased over time. But also kept open the possibility of direct transfers to other central banks.
The PBC [People’s Bank of China] is the most likely central bank buyer. The bank is deeply dissatisfied with the performance of its US treasury holdings and has made clear its intention to diversify including into gold. In November and December the PBC sold USD46bn of treasures; they must be buying something.
While he remains rather neutral on gold, with a 2010 target price of just $1,162, he also highlights how Gold bullion demand picked up in Q4 as well, driven by ‘Unidentified Investment’. Which could be good news for early 2010.”
Note “Unidentified investments”!
- The Dots Connected
China sold our treasury notes to buy gold. Soros Al-Waleed (John Paulson too) are selling the gold through Citi, from IMF.
Obama already gave IMF ‘$108 Billion. The gold being sold is worth $105 Billion, which we had already paid for once. Soros, Al-Waleed & China make money off it. It appears as though $3 Billion is missing.
If you connect the dots in those links, you will see the scam. Remember Citi is Rham’s baby. He tanked it so Soros could buy cheap.
So we gave IMF Money. We bailed out Citi. Obama’s handlers, Soros & Al-Waleed buy Citi cheap, buy Gold through IMF & Citi, Sell gold to China. China sold treasury notes to buy the gold.
So now we don’t have Citi, money in IMF, Treasury notes, or Gold.
In the meantime we paid for all this twice and are still getting robbed.
————
Fake gold bars in Bank of England and Fort Knox
FED GAVE Banks Access to 23.7 TRILLION DOLLARS NOT $700 Billion!
