>>>>>Under the plan, countries which owe the IMF money from past loans, such as Mexico, would buy IMF gold the day before loan payments are due and then repay the installment the next day with the same gold, sources familiar with the scheme told Reuters. The plan raises cash for the IMF because the fund values the gold on its balance sheet at about $46 an ounce. Since gold is actually worth about $255 an ounce, the transaction would net the IMF profits of about $209 an ounce, or about $2.1 billion.<<<<<
Now let me get this straight. Mexico owes the IMF $X billion dollars. The day before the loan is due, the IMF "sells" Mexico gold at $46 an ounce (on credit, no doubt), and then the next day, Mexico pays the IMF the loan payments (and maybe for the $46/oz gold) using the same gold (which probably never left the IMF vault) now valued at FMV, say, $255 oz.
I'm not an accountant, but I think if a bank tried crap like that, the FDIC would shut them down. WTF????? How does selling gold at a loss "profit" the IMF? |
