IMF makes desperate move to preserve the petrodollar... since the Iraq War II failed.

IMF makes desperate move to preserve the petrodollar... since the Iraq War II failed.

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Subject: IMF makes desperate move to preserve the petrodollar
Date: Apr 8, 2008 9:59 AM

Since the Iraq war failed...
The IMF was always about preserving the "generating income," since the
IMF was always about the petrodollar. Iraq failed to provide the
income, since
BigOil in 5 years did not get their paws on the oil.

KMDickson


http :// www .rawstory,com /news/mochila/IMF approves huge eventual gold sal 04072008.html

IMF approves huge eventual gold sale

IMF Approves Eventual Sale of More Than 400 Tons of Gold to Close
Budget Gap

HARRY DUNPHY
AP News

Apr 07, 2008 17:38 EST

The International Monetary Fund's executive board has approved a broad
financial
overhaul plan that could lead to the eventual sale of a little over
400 tons of
its substantial gold supplies.

The sale cannot occur without congressional approval as well as
legislative action
in many of the 184 other nations that are members of the Washington-
based lending
institution.

IMF Managing Director Dominique Strauss-Kahn welcomed the board's
decision Monday
to propose a new framework for the fund, designed to close a projected
$400 million
budget deficit over the next few years.

It is "a landmark agreement that will put the institution on a solid
financial
footing and modernize the IMF's structure and operations," he said in
a
statement.

The budget proposal includes sharp spending cuts of $100 million over
the next three
years that will include up to 100 staff dismissals.

"We have made difficult but necessary choices to close the projected
income
shortfall and put the fund's finances on a sustainable basis, but in
the end
it will make the fund more focused, efficient and cost-effective in
serving our
members," said Strauss-Kahn, a former French finance minister.

The IMF said the board agreed to revamp the fund's income model from
one that
primarily relies on lending to one that generates money from various
sources.

During the 1990s, the IMF lent billions to countries in Asia and Latin
America that
were facing financial crises and financed its operations on interest
from those
loans. In recent years, IMF lending has dried up as many of those
countries have
built up reserves to prevent them from having to borrow again from the
IMF, which
often puts severe restrictions and conditions on its loans. The
declining interest
payments led to the IMF's budget gap.

Actual sale of the gold cannot start immediately because the U.S.
member on the
IMF board cannot vote for it until Congress approves. Congress has
made approval
conditional on a broad range of operational changes that Strauss-Khan
has pledged
to carry out to preserve the relevancy of the 64-year-old
organization, whose mission
is to promote global financial stability.

Under the plan, the IMF would sell the 403 tons, or nearly 13 million
ounces, of
gold for about $11 billion over several years. The IMF would keep $4.4
billion on
its books, and the remaining $6.6 billion would go into an investment
account.

The IMF, which has sold gold before, said it would coordinate the
sales with central
banks in an effort to prevent market disruptions.

"Gold sales would be conducted in a transparent manner with strong
safeguards
to ensure that they do not add to official sales and avoid any risk of
market disruption,"
the IMF said in a statement.

The Bush administration said in February it could support selling a
limited amount
of IMF gold as away to ensure the agency's long-term financial
stability, but
Treasury officials realized this would be a hard sell. In 1999
Congress rejected
a previous proposal to sell IMF gold, and the current majority leader
of the Senate,
Democrat Harry Reid, comes from the gold-mining state of Nevada.

Strauss-Khan, who took over last November as head of the IMF, said the
financial
overhaul was another major step in the organization's reform process.
It followed
a decision last month to slightly increase the voting power of rapidly
developing
countries such as China, India and Brazil, who are playing a growing
role in the
world economy. Since its founding, the United States and European
nations have dominated
IMF decision-making.

Besides using the gold sales to produce an income stream, the fund's
narrow
investment authority will be broadened.

Source: AP News