Strike The Root Blog

The IMF, surprise, suprise, has not managed taxpayer money well and they’re in trouble. They say its due to early repayment of loans from third world countries (they’d rather have the interest.) I’m pretty sure it’s due to outright theft the tendency of bureaucracy to grow itself, mismanagement and utter lack of concern for how other people’s money is spent.

It reminds me of a story I heard about an Indian coming into a diner and ordering coffee. After he drank it, he pullled out gun and shot a bag of cow dung and walked out. The next day he did the same. The third day everyone wanted to know what he thought he was doing. “Learning to work for the government. Drink coffee, shoot shit.”

Anyway, the IMF is considering selling (taxpayer) gold, about $6M of it to raise revenue. There’s a lot of speculation as to whether that will a) happen and b) adversely affect the price of gold.

Doug Hornig of Casey Research talks about why he thinks it won’t happen and if it does, why it shouldn’t affect the markets.

But if it should happen, anything that causes a dip in gold prices provides a great buying opportunity.

http://www.mineweb.net/columns/casey57.htm

This entry was posted on Thursday, February 15th, 2007 at 10:27 am and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.