Gold Standard & The IMF

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kevo's picture
kevo
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Joined: Sep 21 2010
Posts: 2
Gold Standard & The IMF

"If a country is a member of the IMF, then it is expressedly forbidden from link it's currency to gold." - George Milling-Stanely, managing director of the World Gold Council

Has anyone ever heard this before?

Video can be found at the link below... this juicy nugget was at 2:25 of the 2:44 minute video.

http://www.thestreet.com/video/index.html?bcpid=1459183594&bckey=AQ~~,AAAAAEBQhPI~,35stD8-Ka9Hb6DxFuJez-2H49xrqIj2-&bctid=792887118001#792752408001

Travlin's picture
Travlin
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Joined: Apr 15 2010
Posts: 1322
Kevo Welcome to the forums.

Kevo

Welcome to the forums. You've posed a good question.  I haven't heard of this before but it sounds like it is probably correct.  The IMF is a product of many nations acting cooperatively and supposedly acts as a "development" bank. Others say is is a mechanism to extract wealth from poor countries, and bind them with unpayable debts.  They are now making noises about establishing a world currency of Special Drawing Rights facilitated through their accounts.  So sure, they would want to prohibit a gold standard.

Travlin 

plato1965's picture
plato1965
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Joined: Feb 18 2009
Posts: 615
   Heard it when I saw

 

 Heard it when I saw this video in 2008...

 

 

Why Does the IMF Prohibit Gold-Backed Currency for its Member States?

(Congressman Ron Paul sent this letter to both the Treasury and the Federal Reserve Bank in April. 2002 Neither has responded)

Dear Sirs:

I am writing regarding Article 4, Section 2b of the International Monetary Fund (IMF)'s Articles of Agreement. As you may be aware, this language prohibits countries who are members of the IMF from linking their currency to gold. Thus, the IMF is forbidding countries suffering from an erratic monetary policy from adopting the most effective means of stabilizing their currency. This policy could delay a country's recovery from an economic crisis and retard economic growth, thus furthering economic and political instability.

I would greatly appreciate an explanation from both the Treasury and the Federal Reserve of the reasons the United States has continued to acquiesce in this misguided policy. Please contact Mr. Norman Singleton, my legislative director, if you require any further information regarding this request. Thank you for your cooperation in this matter.

Ron Paul

U.S. House of Representatives

 

 see - http://mises.org/store/Pillars-of-Prosperity-Free-Markets-Honest-Money-Private-Property-P466.aspx

plato1965's picture
plato1965
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Posts: 615
IMF - Peg to anything.. except Gold.

 or better yet... straight from the source.

 

 (b) Under an international monetary system of the kind prevailing on January 1, 1976, exchange arrangements may include (i) the maintenance by a member of a value for its currency in terms of the special drawing right or another denominator, other than gold, selected by the member, or (ii) cooperative arrangements by which members maintain the value of their currencies in relation to the value of the currency or currencies of other members, or (iii) other exchange arrangements of a member's choice.

http://www.imf.org/external/pubs/ft/aa/aa04.htm

 

kevo's picture
kevo
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Joined: Sep 21 2010
Posts: 2
Thanks!

Thanks!

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