Iran reports uranium enrichment deal with Russia


10:24a ET Saturday, April 22, 2006

Dear Friend of GATA and Gold:

The Reuters story appended here is 24 hours out of
date but is notable for showing how both the central
bankers and the news media take for granted the
rigging of currency markets -- indeed, how their
very premise is that currency markets should be
rigged, that central banks should work together but
largely surreptitiously to set all international
financial values, the values of assets, the value
of the necessities of life, and the values of labor.

This raises a question: Who elected THEM to run
the world?

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

* * *

Global Finance Chiefs Worry About Dollar Direction

By Tamawa Kadoya and Mike Dolan
Friday, April 21, 2006

WASHINGTON -- Finance chiefs from rich nations on Friday welcomed
the idea of a bigger role for the International Monetary Fund a
bigger role as a global currency watchdog, according to a draft of
the officials' communiqu.

Sources also said late afternoon that Group of Seven participants
were considering singling out China as a country that specially
needed to move towards a more flexible currency.

The draft, seen by Reuters, indicated G7 finance ministers and
central bankers saw several risks to a generally sunny global
outlook. These included high oil prices, a threat of protectionist
trade policies and concern that global trade imbalances could lead
to upheaval.

"Greater exchange rate flexibility is desirable in emerging
economies with large current account surpluses, especially China,
for necessary adjustments to occur," the draft said, though it was
unclear if that wording would be included in the final version.

A European source had indicated that global finance chiefs were
wrestling with the ways to prevent a tumble in the dollar's value
should they fail to find a way to smoothly correct trade imbalances.

At an IMF-sponsored conference ahead of the meeting of G7 finance
ministers and central bankers, participants were told they should at
least prepare for a situation that could include a dollar fall.

"It's probable we will have a slowdown in the U.S. economy, a
cooling of the real estate market, a decline in consumer spending --
and so the dollar could depreciate," a source told Reuters,
summarising views expressed at the morning meeting.

"Countries should be ready for that," the source added.

The G7, comprised of the United States, Britain, Canada, France,
Germany, Italy and Japan, began meeting early afternoon and
officials were expected to issue a final version of the communiqu
at around 6:30 p.m. EDT (11:30 p.m. British Time).

Sources said the communiqu, summarising the four-hour meeting,
would not specifically mention the dollar but will say co-ordinated
and gradual currency adjustments are important.

"G7 will ask for more flexibility in Asian foreign exchange rates,"
the source said. "They would like to have gradual and co-ordinated
developments of foreign exchange markets."

Notwithstanding that IMF forecasts are for a fourth straight year of
healthy global growth rate topping 4 percent -- specifically 4.9
percent in 2006 -- the G7 officials saw some troubling signs on the

With oil prices topping $75 a barrel on Friday, about 23 percent
above levels a year ago, Japanese Finance Minister Sadakazu Tanigaki
suggested ahead of the G7 meeting that there was reason to worry
about a flare-up in inflation.

"Oil prices have not led to inflationary risks so far, but given
that prices have extended their highs, we need to further our
discussion," Tanigaki told reporters.

The G7 meeting was taking place on the fringes of semi-annual
meetings of the World Bank and the IMF, whose leader Rodrigo Rato
was pushing for a larger IMF role as an arbiter of economic policy
to try to help unwind dangerous trade imbalances.

G7 officials have been trading blame for years over swelling
imbalances in trade and finance, with the United States contending
slow-growing Europe and Japan are partly at fault while the others
blame America's profligate spending.

"A disorderly unwinding of global imbalances would be very damaging
and such an outcome becomes more likely as time passes and
imbalances are left unaddressed," Rato said Thursday in one of
several strongly worded comments aimed at getting the G7 to admit
they need a stronger IMF to move a solution forward.

Reforms up for discussion include closer monitoring of exchange
policies in emerging economic powers by the fund.

The IMF proposes to start convening multilateral talks with large
blocs within its 184-strong membership to co-ordinate steps to help
reduce trade and investment distortions.

Though that has been the domain of the old-line G7 powers until now,
the United States is pressing for a larger IMF role, a mantle Rato
appears willing to assume.

"The days when G7 finance ministers could sit in a hotel room and
make decisions about exchange rates are gone," Rato said, referring
to 1985's Plaza Accord to weaken the dollar.

Tension over the currency issue has been heightened by the inability
of the United States or other G7 nations to persuade China to
revalue its yuan faster -- a failure underlined by inconclusive
talks Thursday between Chinese President Hu Jintao and President
George W. Bush.

European sources indicated Friday that some G7 members, like
Germany, were reluctant to have the IMF play a major role in foreign
exchange guidance.

That might reflect wariness within the G7 that the IMF is merely
seeking a justification for itself as demand for its crisis loans
falls in a healthy global economy and widening availability of
private capital flows.


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