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Kazakh IMF-president to display that gold hiding in oil is wealth

May 20, 2011 1:56 AM ET
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Kazakh IMF-president to display that gold hiding in oil is wealth by launching Chinese FreeGold

Boost Asian trade and investment through Honest Money.

China backs emerging nations as IMF head resigns
(AFP) – 19 May 2011
BEIJING — China's central bank chief Thursday pushed for emerging countries to be included in the top leadership of the International Monetary Fund, after the resignation of embattled boss Dominique Strauss-Kahn. UNSNIP

M Massimov mulling to suggest Marchenko to the position of the IMF head
Thursday, 19.05.2011, 17:30
Kazakhstan’s Prime Minister Karim Massimov intends to suggest Chairman of the National Bank Gregory Marchenko as a candidate for the position of the IMF Head at the sitting of CIS (Commonwealth of independent States) Heads of Government in Minsk.
“I want to suggest Marchenko as a candidate for the position of the IMF Head”, the Prime Minister wrote in his Twitter account.
The sittings of the Council of CIS Heads of Government and Interstate Council of the Eurasian Economic Community (supreme body of the Customs Union) is being held in Belarus capital on May 19.
The Customs Union between Russia, Kazakhstan and Belarus came into existence on January 1, 2010 to boost trade and investment. According to the statement made at the press-conference in Minsk, the Customs Union was formed on the WTO principles. END OF ARTICLE

At its inception in the 1940s, the IMF had to supervise the exchange rate of the USA dollar at 1/35th of an ounce of gold.
Then came USA president Richard Nixon who decreed on 15 August 1971 that this exchange rate was null and void.
Since then the IMF supervises the system of exchange rates in the plural, thereby hoping to be promoting the stability of the international monetary system.

China wants gain more say at the IMF but doesn’t propose a president.
Does China want the IMF only to have to supervise the marking to market
(not to the model of $35, now $42-something, like the USA central bank)
of the gold reserves of the People’s Bank of China?
Is there a need for supervision of FreeGold?

In order to boost CIS trade and investment the CIS IMF president could help China achieve FreeGold.
Without Honest Money, and thus Freegold, boosting CIS trade and investment is impossible.

FreeGold means that the currency has a gold component and a paper component, but puts a "firewall" between the two so that gold’s valuation as a wealth-preserving asset cannot be pulled lower by the inevitable inflation of the paper component of circulating currencies. It is the (quarterly) marking to market (MTM) of the gold reserves of the People’s Bank of China, not to the model of $42-something like the USA central bank, by the PBoC which provides that wall.

Kazakh c.bank may convert some reserves into yuan
Tue May 10, 2011 11:20am BST
Neighbour China hungry for Kazakh oil and metals
- IMF could declare yuan reserve currency this year -cbank
- Payments "99 percent" in dollars, but swap deal in hand * Tenge could find level at 144.6-144.7 per dollar – cbank UNSNIP

Kazakhstan produces gold

Kazakhstan produces oil which it exports through a pipeline to China.

As oil is the only commodity in the world that is large enough for gold to hide in, gold is hiding in there.

Like all oil producers and exporters, Kazakhstan exchanges its petro-dollars, which, like the dollar itself, have no value, for gold.

National Bank of Kazakhstan considers converting reserves to Chinese yuan
08:43, May 11, 2011
"To be part of our foreign reserves the yuan must be recognized internationally as both a hard currency and a reserve currency," said bank CEO Grigory Marchenko. "There are many discussions on that topic...We believe the changes will take place this year. If it happens, then part of our gold and foreign currency reserves will be converted to yuan."

Ivo Cerckel


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