Germany's Angela Merkel is on the news again today defending an IMF bailout of Greece. Clearly there is no appetite for Germans to volunteer money for the Greek's own faults.
Merkel told German lawmakers in Berlin today:
“A good European is not necessarily one who rushes to assist”Since the U.S is the largest share owner of the IMF (17%), questions have arisen as to whether the US dollar is the one that will suffer as the U.S is forced to issue yet more debt.
Last year there was much fanfare about the IMF supposed sale of hundreds of tons of gold to India (actually SDRs, which India had received in July, but we digress).
So the question is, why couldn't the IMF simply sell more gold in this case too? The amount in question is relatively small at $10/$15B.
In this case, the price that could suffer is that of gold.