Of course on a day when I have no time I come across plenty of good things!
IMF Gold Sale
Gold was stumbling today on word the IMF was selling gold. Check this headline from Clusterstock:
IMF Announces Gold Liquidation, Sending Bulls Hiding In The Corner
I thought that another sale was in the works but this announcement is just the OTHER half of the 400 or so ton sale announced a while ago. India bought the hole chunk last time from the IMF.
Maybe more sales are in the works, and in the end it makes perfect sense (to bankers anyway). Sell gold to raise cash to bail out broke nations. Sounds like a winning strategy. At some point there will be some nations with gold and many others with plenty of paper. Who will be better off?
This leads me to.....
Modern Markets Theory
I have never heard of MMT but I stumbled upon a post over at Kid Dynamite's site that opened the door:
Two Sides to Every Story
Check it out for the particulars and for linkage to Billyblog. Great discussion on both sites going on and it may be worth a look.
My quick take, and I am using my words and observations not those of the people that really have a grasp on this idea, a country can never print too much money and the government is a great conduit to channel aggregate demand. Obviously I would disagree 100%, but I am not very enlightened either!
UK is China in Bond Market
Last post I noted that China may have been dumping US debt. Well it seems that may not be the case as China can do their buying through various intermediaries and thus the drop by China proper is not a big deal. Or something. I wonder why this crap cannot be more transparent?
Zero Hedge's take.
Essay on Topic
On the question I have been working on about debt limits, Mish of course has a great article up that directly speaks to this:
Law of Diminishing Returns of Credit Expansion
Have a good night.