Influence within the IMF is worth its weight in gold
Following the recent meeting of the International Monetary Fund, Christine Lagarde publicly adopted a positive posture about the organization’s efforts to build a stronger firewall against another financial crisis. Behind the sunny statements were divisions on policy, politics and power.
U.S. News & World Report columnist James Rickards says an understanding of how the IMF functions today, one must examine the politics surrounding “the U.S. response to the firewall, the relative voting rights of IMF members, and the hidden role of gold.” Yes, gold, which has not been an international reserve asset since 1973.
“Despite decades of disparagement by mainstream economists gold is still the hidden hand of international finance. . . . Gold still determines who runs the system and who does not. China and Brazil will get their IMF votes—once they get their gold,” asserts Rickards.