Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Dutch Central Bank Sale Announcement Imminent? -- Ignore unavailable to you. Want to Upgrade?

To: lorne who wrote (4379)	3/19/1999 2:34:00 AM
From: ForYourEyesOnly	Respond to of 81023

Letter to Congressman Saxton: (jim.saxton@mail.house.gov) Dear Congressman Saxton, I am an American citizen currently residing in Kyoto, Japan. I understand that the Congressional Joint Economic Committee is currently reviewing the pleas to sell U.S. gold for the IMF. I would like to make a few brief comments about this issue. I would assume that the proposal is to: 1. Sell the IMF gold for US$. 2. Loan or donate the US$ to developing nations. To me this sounds quite strange. Gold has served as an international currency for much longer than the US$. Why not just loan or donate the gold to the developing nations? There is no reason that gold must be sold prior to use for funding. The nations needing aid could then use the gold as collateral for financing, lease the gold, or sell the gold. Or, to the contrary, why doesn't the IMF sell its US$ and buy gold? The IMF could then loan the gold to the developing nations. Gold is money, and there is no reason that the IMF should not use it as such. At present all of the following are true for gold: 1. Gold can be loaned 2. Gold can generate interest 3. Gold can be used as a denomination for electronic payment In all of the above respects, gold is no different from the US$, Japanese yen, or Euro. Yet why does the IMF only consider selling gold? Why not sell dollars or some other currency? I just wanted to let you know my thoughts on this issue. Thank you for your consideration. Best regards, Thomas Childers