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IMF to sell gold to raise bail for Strauss-Kahn
By Ben Dover
Financial Crimes, London
Sunday, May 15, 2011
WASHINGTON -- After an emergency meeting of its Board of Governors on Sunday afternoon, the International Monetary Fund announced that it would sell gold to raise bail for its managing director, Dominique Strauss-Kahn, charged Saturday with raping a hotel chambermaid in New York.
The IMF's first deputy managing director, John Lipsky, taking over while Strauss-Kahn was held in a lockup in Harlem pending a court appearance, defended his boss. "The maid was Argentinian," Lipsky said, "and you know how those people are about repaying their international loans. Dominique probably couldn't help it. Force of habit, you know."
Lipsky would not quantify the IMF's new gold sale but he said it would be enough both to obtain the release of Strauss-Kahn and "to ensure orderly transactions in gold, the dollar, the euro, the pound, the yuan, the Swedish krona, the Brazilian real, the South African rand, the Mexican and Argentine pesos, the Mongolian tugrik, and any other currencies in which an actual market might threaten to break out."
Gold in Asia fell more than $5 to $1,489.20.
Wall Street Journal Publishes Lewis Lehrman's Call for the Gold Standard
In its April 26 edition The Wall Street Journal published an important essay by the Lehrman Institute's chairman, Lewis E. Lehrman, explaining why a gold-convertible dollar is critical to eliminating the shocking federal deficit.
"Experience and the operations of the Federal Reserve System compel me to predict that U.S. Rep. Paul Ryan's heroic efforts to balance the budget by 2015 without raising taxes will not end in success -- even with a Republican majority in both Houses and a Republican president in 2012. ...
"What persistent debtor could resist permanent credit financing? For a government, an individual, or an enterprise, 'a deficit without tears' leads to the corrupt euphoria of limitless spending. For example, with new credit the Fed will have bought $600 billion of U.S. Treasuries between November 2010 and June 2011, a rate of purchase that approximates the annualized budget deficit. Commodity, equity, and emerging-market inflation are only a few of the volatile consequences of this Fed credit policy."
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Prophecy Resource Spins Off Platinum/Palladium Venture:
World-Class PGM Deposit in Yukon
Company Press Release, January 18, 2011
VANCOUVER, British Columbia -- Prophecy Resource Corp. (TSX-V:PCY)and Pacific Coast Nickel Corp. announce that they have agreed that PCNC will acquire Prophecy's Nickel PGM projects by issuing common shares to Prophecy.
PCNC will acquire the Wellgreen PGM Ni-Cu and Lynn Lake nickel projects in the Yukon Territory and Manitoba respectively by issuing up to 550 million common shares of PCNC to Prophecy. PCNC has 55.7 million shares outstanding.
Following the transaction:
-- Prophecy will own approximately 90 percent of PCNC.
-- PCNC will consolidate its share capital on a 10 old for one new basis.
-- Prophecy will change its name to Prophecy Coal Corp. and PCNC will be renamed Prophecy Platinum Corp.
-- Prophecy intends to distribute half of its PCNC shares to shareholders pro-rata in accordance with their holdings.
Based on the closing price of the common shares of PCNC on January 17, $0.195 per share, the gross value of the transaction is $107,250,000.
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