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To: Glenn D. Rudolph who wrote (64925)	6/30/1999 4:56:00 AM
From: GST	Read Replies (1) \| Respond to of 164684

OT -- Glenn -- Yen and gold carry trade unwinding as we speak. Yen being held down by intervention - estimated at 15-20 billion dollars in four seperate interventions in the last few days. IMF gold sales increasingly unlikely. A drop in the dollar and a rise in gold will trim some of the fat from the stock market -- I am going to hang in as long as I can on the long side -- going with earnings and crossing my fingers, with a healthy dose of gold calls to round things off. Key U.S. Republican seeks to quash IMF gold sales By Mark Egan WASHINGTON, June 29 (Reuters) - House Republican Leader Dick Armey on Tuesday denounced the proposed sale of International Monetary Fund gold to help reduce poor countries' debt and said he would back legislation to block the proposal. Under the plan, up to 10 million ounces of the IMF's 104 million ounce gold reserve would be sold and proceeds used to offset debt owed by poor countries. Armey criticized the plan as ''just a way for the IMF to acquire liquidity for more mischief without being accountable.'' The Texas Representative told Reuters it was ''very, very likely'' he would co-sponsor legislation next week aimed at blocking the gold sales plan. He referred to a bill to be introduced next week by Joint Economic Committee Vice Chairman Jim Saxton of New Jersey which would block the sale of IMF gold unless proceeds were returned to the U.S. and other IMF donor nations. Armey had requested Saxton examine the gold sales issue on his behalf. Republican Whip Tom DeLay is also expected to co-sponsor the legislation. Some Republicans are concerned that part of the interest generated by the IMF gold sales could be used to help fund the IMF's structural loan program, called the Enhanced Structural Adjustment Facility. Critics see the gold sales plan as a ''back door'' way for the IMF to support the program which they say is flawed because it mandates poor countries adopt restrictive fiscal policies at the expense of social programs -- something the fund has adamantly denied. Congress has not authorized, or appropriated, any cash for ESAF since 1994. The program is expected to become self funding in 2004 once loan repayments should exceed payouts. But many in Congress who spoke against the IMF's funding debate last year would oppose any proposal that could be seen as a way to prop up ESAF before it becomes self-financing. The debt reduction plan, which would cut the debts owed by 41 of the world's poorest countries was agreed on this month by the Group of Seven major industrial nations. The gold sales plan needs the approval of 85 percent of the IMF's board. Since the United States has a 17 percent vote at the fund, Congress could effectively veto the plan. Saxton's bill looks set to be the first salvo in what could become a months-long battle in Congress over the gold sales issue. The gold sales proposal is viewed by many Republicans as ''dead in the water,'' but Democrats say it's too soon for many lawmakers to have decided the issue. This revives memories of a heated debate which lasted more than a year and resulted in an $18 billion funding package for the IMF last October. The gold sales issue is expected to generate much opposition from those in Congress who dislike the IMF as well as from those who represent Western U.S. gold-producing states like Nevada. Others are concerned the plan could further erode the price of gold and, as a result, negate much of the benefit to the poor countries since 36 of them produce gold. biz.yahoo.com