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The IMF has just announced their final communique, which will inject an extra $1 trillion dollars into the global economy, bringing the total of already announced and committed global stimulus, to $5 trillion dollars.

The $1 trillion extra which Mr Brown said would “be made available to the world economy” includes an extra $500 billion in reserves for the IMF and $250 billion in Special Drawing Rights to be made available to IMF members.

http://www.timesonline.co.uk/tol/news/politics/G20/article6023388.ece

Concerning worries over “additional” IMF gold sales above and beyond the present agreement, here is the G-20’s remarks on that issue from their final communique:

http://www.londonsummit.gov.uk/en/media-centre/latest-news/?view=News&id=15766937

5. The agreements we have reached today, to treble resources available to the IMF to $750 billion, to support a new SDR allocation of $250 billion, to support at least $100 billion of additional lending by the MDBs, to ensure $250 billion of support for trade finance, and to use the additional resources from agreed IMF gold sales for concessional finance for the poorest countries, constitute an additional $1.1 trillion programme of support to restore credit, growth and jobs in the world economy. Together with the measures we have each taken nationally, this constitutes a global plan for recovery on an unprecedented scale.

It would appear that the IMF did not approve any additional gold sales above the existing agreement, and even if additional sales are approved, those sales should be able to be handled “off market” by central banks desiring to diversify their US Dollar holdings.

I wrote about the politics involved in any additional IMF Gold Sales on my Silicon Investor forum here:

http://siliconinvestor.advfn.com/readmsg.aspx?msgid=25541759

It was important to the IMF, Central Bankers, and the G-20, that Gold did not sound too large of an alarm bell, or dominate the headlines today, as global central bankers announced the world’s first globally coordinated reflation.

Today’s smack down is a mere speed bump in a long road ahead. While it’s naive to think that the road ahead will not be fraught with more speed bumps and winding turns, the real message from the G-20 & IMF’s actions today, is best shown by the reaction of the U.S. Dollar, which is down sharply as I type.

Bottom line: The G-20 and the IMF just gave gold bugs 5 Trillion reasons to be bullish for the long run.

Everything else is noise.

SliderOnTheBlack