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Trichet, IMF general privilege of seniority, and gold

  At the press conference after the 06 May 2010 Lisbon meeting of European Central Bank (ECB) governing council,
leaving interest rates unchanged at 1 percent,
ECB president Jean-Claude Trichet said, concerning the seniority of Greek loans,
something about
the “overall institutional framework of the world”
within which the International Monetary Fund (NYSE:IMF) has a general privilege of seniority. (1)

In finance, seniority refers to the order of repayment in the event of bankruptcy.
Senior debt must be repaid before subordinated debt is repaid.  (2)

Think about it:
Since 15 August 1971, when USA president Richard Nixon broke the 1944 Bretton Woods system,
the IMF has no more reason to exist. (3) (4)

Anybody noticed that gold,
to which Bretton Woods pegged the dollar at fixed parity of $35 to an ounce of gold,
rose by more than 30 dollar on that same 06  May 2010?

Ivo Cerckel
honestmoney@maktoob.com
http://twitter.com/ivocerckel/

NOTES

(1)
(AFX UK Focus) 2010-05-06 14:55
HIGHLIGHTS-Trichet comments at ECB news conference
http://www.iii.co.uk/news/?type=afxnews&articleid=7879461&subject=economic&action=article
SNIPS
LISBON, May 6 (Reuters) - The following are comments by European Central Bank President Jean-Claude Trichet at a news conference held after the bank’s Governing Council kept interest rates at a record low of 1 percent on Thursday.
+
SENIORITY OF GREEK LOANS
To my knowledge, the IMF has a general privilege of seniority, which is part of the overall institutional framework of the world. So that’s my understanding. But it is up to governments, of course, to respond to this question.

(2)
http://en.wikipedia.org/wiki/Seniority_(financial)

(3)
Since 15 August 1971, when USA president Richard Nixon broke the 1944 Bretton Woods system, the IMF has no more reason to exist.
If the IMF continues to exist, this is in order to support the bankrupt dollar- regime.

The 1944 Bretton Woods agreements linked the USA dollar at fixed parity of 35 dollar to an ounce of gold and all other currencies to the said dollar. The IMF’s only function is to supervise and maintain that system. The system is no longer in existence, so the IMF bureaucrats should look for a honest job.

(4)
http://bphouse.com/honest_money/freegold-versus-imf/
Whereas before 15 August 1971, when US President Richard Nixon broke the Bretton Woods system, the US dollar was a Gold derivative, current IMF rules (article IV, section 2, (b), of the IMF Articles of Agreement) prohibit members from linking their currencies to Gold.
Since that date, the IMF has no more reason of existence.
If the IMF continues to exist, this is in order to support the bankrupt dollar regime, thereby making of Gold a dollar derivative.