Check out the latest from the IMF scroll down for Key IMF Financial Statistics for Dec 28, 2006

Credit outstanding has gone from 55.4 billion at the end of 2004 to just 10.1 billion at the end of 2006. It's important to note that banks work inversely from a business. Loans are assets for a bank and a liability for a business. This is a decline of 82% in assets that the IMF was holding just two years ago. At the end of 1998 the IMF had created 60.5 billion in loans, so since the end of 1998 assets have gone down 83.3%.

I know both Bolivia and Ecuador are talking about paying off their IMF debts fairly soon. The largest holder of IMF debt is currently Turkey. Nobody is borrowing from the IMF and why should they, China and Russia are lending at much more favorable terms. Where does this all lead?

The IMF financed itself back in the 1940's with gold, what happens to this asset if the IMF is no longer a lender? As of August 2006 the IMF claimed that they held 103.4 million ounces (3,217 metric tons) of gold at designated depositories. Certainly the IMF has some level of fixed costs that must be met to finance buildings, payroll and their excessive meddling in the economies of the world, what does one consider this level of expense to be and how possibly can 10.1 billion in loans be enough to pay for this expense?

If you're a holder of gold, I think I'd be a bit concerned about some level of IMF sells of gold entering the market, especially at these prices.