Monday, June 1, 2009

Why is China buying Gold?

Today we have Tim Geithner rushing over to Beijing to placate his new economic masters.

Last Friday , the US Dollar index fell through critical supports.

In a week to two, pending Congressional approval the IMF will sell roughly 400 tonnes of Gold. What better way to placate the Chinese than to let them have the IMF gold as collateral for their holdings of essentially worthless bonds.

These are not mere coincidences.

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