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To: Real Man who wrote (381979)	3/12/2009 11:03:17 AM
From: gregor_us	2 Recommendations Read Replies (4) \| Respond to of 436258

They're going to monetize the losses. They're going to bring the IMF in somehow. I keyed in on this in my Yen Flood post. The BOE and the FED are going to flush alot of the losses down the toilet with paper. I think they are going to use the IMF in some sort of odd-ball operation. They will first hint that the IMF needs to sell some gold. And then, the IMF will buy gold during the weakness, and they'll they'll announce that gold will somehow form part of the base of new IMF SDRs, thus making gold more valuable. In 7-8 years, writing on SI, that may be the first time I have unequivocally made a call that asserts the global financial powers will intentionally pull off some sort of major manipulation. I don't know how they are going to do it. But they have to find some way to get gold lower so that they can accumulate more, to form the base for a new lot of SDRs. So I see central banks monetizing their own banking systems, and then I see the IMF coming in and finishing the job with SDRs. The SDR will have to be backed somehow. I'm thinking a forex basket with 10-20% gold. So, at the end of this process, a bank like RBS in the UK will have 1. taken lots of losses. 2. had the BOE take some of its losses. 3. will be recapitalized with SDRs from the IMF. It's pointless to try and figure out how the final landscape will look. They really have no choice but to print up new paper to replace the destroyed paper. If not, even the financial powers will be out of a job, and maybe at the end of a rope. So I see myriad ways for them to print. The masks will be many. The end result the same. Best, G