You are here
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The Reuters story appended here is 24 hours out of
date but is notable for showing how both the central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
Reuters
Friday, April 21, 2006
http://today.reuters.co.uk/news/newsArticle.aspx?
type=businessNews&storyID=2006-04-
21T212036Z_01_N21259364_RTRUKOC_0_UK-GROUP.xml
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
horizon.
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.
----------------------------------------------------
To subscribe to GATA's dispatches, send an e-mail to:
gata-subscribe@yahoogroups.com
To unsubscribe, send an e-mail to:
gata-unsubscribe@yahoogroups.com
Caution: America Online prohibits delivery of GATA
dispatches to AOL e-mailboxes.
----------------------------------------------------
RECOMMENDED INTERNET SITES
FOR DAILY MONITORING OF GOLD
AND PRECIOUS METALS
NEWS AND ANALYSIS
Free sites:
http://www.cbs.marketwatch.com
http://www.usagold.com/amk/usagoldmarketupdate.html
http://www.capitalupdates.com/
http://www.silver-investor.com
http://www.thebulliondesk.com/
http://www.goldismoney.info/index.html
http://www.minersmanual.com/minernews.html
http://www.a1-guide-to-gold-investments.com/euro-vs-dollar.html
http://www.investmentrarities.com
http://www.kereport.com
(Korelin Business Report -- audio)
http://www.plata.com.mx/plata/home.htm
(In Spanish)
http://www.plata.com.mx/plata/plata/english.htm
(In English)
http://www.resourceinvestor.com
http://www.goldpennystocks.com/
Subscription sites:
http://www.lemetropolecafe.com/
http://www.interventionalanalysis.com
http://www.investmentindicators.com/
Eagle Ranch discussion site:
http://os2eagle.net/checksum.htm
Ted Butler silver commentary archive:
http://www.investmentrarities.com/
----------------------------------------------------
COIN AND PRECIOUS METALS DEALERS
WHO HAVE SUPPORTED GATA
AND BEEN RECOMMENDED
BY OUR MEMBERS
Blanchard & Co. Inc.
909 Poydras St., Suite 1900
New Orleans, Louisiana 70112
888-413-4653
http://www.blanchardonline.com
Centennial Precious Metals
Box 460009
Denver, Colorado 80246-0009
1-800-869-5115
http://www.USAGOLD.com
Michael Kosares, Proprietor
cpm@usagold.com
Colorado Gold
222 South 5th St.
Montrose, Colorado 81401
http://www.ColoradoGold.com
Don Stott, Proprietor
1-888-786-8822
Gold@gwe.net
El Dorado Discount Gold
Box 11296
Glendale, Arizona 85316
http://www.eldoradogold.net
Harvey Gordin, President
Office: 623-434-3322
Mobile: 602-228-8203
harvey@eldoradogold.net
Gold & Silver Investments Ltd.
Mespil House
37 Adelaide Rd
Dublin 2
Ireland
+353 1 2315260/6
Fax: +353 1 2315202
http://www.goldinvestments.org
info@gold.ie
Investment Rarities Inc.
7850 Metro Parkway
Minneapolis, Minnesota 55425
http://www.gloomdoom.com
Greg Westgaard, Sales Manager
1-800-328-1860, Ext. 8889
gwestgaard@investmentrarities.com
Kitco
178 West Service Road
Champlain, N.Y. 12919
Toll Free:1-877-775-4826
Fax: 518-298-3457
and
620 Cathcart, Suite 900
Montreal, Quebec H3B 1M1
Canada
Toll-free:1-800-363-7053
Fax: 514-875-6484
http://www.kitco.com
Lee Certified Coins
P.O. Box 1045
454 Daniel Webster Highway
Merrimack, New Hampshire 03054
http://www.certifiedcoins.com
Ed Lee, Proprietor
1-800-835-6000
leecoins@aol.com
Lone Star Silver Exchange
1702 S. Highway 121
Suite 607-111
Lewisville, Texas 75067
214-632-8869
http://www.discountsilverclub.com
MRCS Canada
12303-118 Ave. NW
Edmonton, Alberta T5L 2K2
Canada
http://www.mrcscanada.com
Michael Riedel, Proprietor
1-877-TRY-MRCS
1-877-879-6727
mrcscanada@shaw.ca
Miles Franklin Ltd.
3015 Ottawa Ave. South
St. Louis Park, Minn. 55416
1-800-822-8080 / 952-929-1129
fax: 952-925-0143
http://www.milesfranklin.com
Contacts: David Schectman,
Andy Schectman, and Bob Sichel
Missouri Coin Co.
11742 Manchester Road
St. Louis, MO 63131-4614
info@mocoin.com
314-965-9797
1-800-280-9797
http://www.mocoin.com
Resource Consultants Inc.
6139 South Rural Road
Suite 103
Tempe, Arizona 85283-2929
Pat Gorman, Proprietor
1-800-494-4149, 480-820-5877
Metalguys@aol.com
http://www.buysilvernow.com
Richard Nachbar Rare Coins
5820 Main St., Suite 601
Williamsville, N.Y. 14221-8232
877-622-4227
http://www.CoinExpert.com
nachbar@coinexpert.com
Swiss America Trading Corp.
15018 North Tatum Blvd.
Phoenix, Arizona 85032
http://www.swissamerica.com
Dr. Fred I. Goldstein, Senior Broker
1-800-BUY-COIN
FiGoldstein@swissamerica.com
The Moneychanger
Box 178
Westpoint, Tennessee 38486
http://www.the-moneychanger.com
Franklin Sanders
1-888-218-9226, 931-766-6066
----------------------------------------------------
HOW TO HELP GATA
If you benefit from GATA's dispatches, please
consider making a financial contribution to
GATA. We welcome contributions as follows.
By check:
Gold Anti-Trust Action Committee Inc.
c/o Chris Powell, Secretary/Treasurer
7 Villa Louisa Road
Manchester, CT 06043-7541
USA
By credit card (MasterCard, Visa, and
Discover) over the Internet:
http://www.gata.org/creditcard.html
By GoldMoney:
http://www.GoldMoney.com
Gold Anti-Trust Action Committee Inc.
Holding number 50-08-58-L
Donors of $200 or more will receive copies
of "The ABCs of Gold Investing" by Michael
Kosares, proprietor of Centennial Precious
Metals in Denver, Colorado, and "The Coming
Collapse of the Dollar" by James Turk and
John Rubino.
GATA is a civil rights and educational
organization under the U.S. Internal Revenue
Code and contributions to it are tax-deductible
in the United States.
