The International Monetary Fund completed the sale of 403.3 tons of gold on December 22nd, 2010. What a Christmas present that was for the leading bankers behind the fund. Gold prices were at historic highs. From the sale of the gold the IMF made $3.5 billion more than it had originally projected.
Out of this windfall the IMF has chosen to give a measly $900 million in low interest debts to countries struggling.
The IMF and other ‘non-governmental’ entities that are ostensibly meant to help the plight of the world’s poorest are really just institutions designed to make a profit. They are also often a way of elite groups in positions of power to use influence through the persuasive powers of offering charity with strings attached. The fact that the IMF could make such a vast amount of money from buying and selling gold clearly casts the organization in its true light – namely, a self-serving group of financiers with an agenda to get rich and grab power.
Often it is the case that developing countries in the south have stagnant and struggling economies through no fault of their own. Natural disasters and the far-reaching effects of the global financial crisis have meant that several poor nations find themselves unable to make debt repayments. It’s a story that’s been frequently covered by the world’s media but little ever seems to change. The last was on the UK, which you can access online from anywhere using this technique to stream BBC News abroad.
It is immoral that the IMF has not responded by cancelling debt, reducing interest rates and delaying payment schedules. They have set up provision for countries like Haiti to be relieved of their debt burden, but a country needs to be as severely economically devastated as Haiti is to qualify for this assistance.
IMF is far from transparent. It is very unclear who they sold the 403 tons of gold to. Moreover, since American banks are virtually insolvent it is hard to see how the IMF continues to operate, and how it continues to maintain any degree of credibility. As the commentator in the video above points out, the IMF is essentially using the debts it holds as leverage to gain control of the assets of countries like Ireland, Spain and Greece which they will then sell at an incredible profit to themselves and their friends. At the same the time, the official coffers will be empty, especially when the south asks for assistance.