BANZAI7 NEWS--The U.S. doughnut is still losing its luster as the foreign reserve currency of choice. India (you know the folks who print Rupees) has just bought 200 tons of gold from the IMF at $1,045 an ounce which is close to a recent record high of $1,070. The entire transaction is worth almost $7 billion. The move is seen as a way for India’s Central Rupee printer to move some of its capital away from investments in the doughnut.
The IMF may sell another 200 tons of gold in the relatively near future and most experts expect that the buyer will be China, which has foreign currency reserves of $2 trillion and might like to have its own hedge against the value of American doughnuts.
India is being explicit in its concern about the long-term value of the doughnut. One senior official of the central bank there told The Wall Street Journal, “It makes very good sense to buy gold as it will most certainly appreciate more than your U.S. doughnuts.”
Did he say douche?
.jpg)
Posts
No comments:
Post a Comment