This one is not about MIQ/Kinross:
Just in - from Cafe member Tim Ellis
Bill
It seems we have all been mislead! According to
the Sunday Times, Brown is an innocent dupe. Perhaps
the pressure from South Africa is too great.
Perhaps GATA also take some credit.
Regards Tim
the-times.co.uk
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Gold sale not my idea, says Brown
by David Smith
Economics Editor
GORDON BROWN has told colleagues that the plan to
sell off more than half of Britain's gold reserves,
which has led to a slump in world gold prices and an
outcry from South Africa, was not his idea.
The proposal to sell the reserves was put to
ministers by officials and, say Treasury insiders,
agreed with relatively little discussion.
The chancellor is said to have been surprised
and mortified by the reaction from Thabo Mbeki, the
South Africa president, who said last week that the
decision would have a "potentially disastrous effect"
on South Africa. A delegation led by South Africa's
mines minister, and including senior trade unionists,
will visit London tomorrow to lobby for an end to the
gold sales. But Brown, who has a two-day meeting of
European and Group of Seven finance ministers in Brussels,
will leave it to junior ministers and officials to meet them.
The price of gold has fallen by $30 (£19) to $257 (£166)
since the announcement of the gold sales in May, hitting a
20-year low after Tuesday's first auction of 25 tonnes. This
means a loss of £25m on the gold so far sold, a loss that
will rise to £400m for the full programme of sales if the
price does not recover.
South Africa's mining companies have warned that
half the country's mines will have to close if the gold
price stays below $265. Already East Rand Proprietary
Mines is under the threat of closure with the loss of
5,000 jobs and five more mining companies have alerted
Pretoria to the impending loss of a further 11,700 jobs.
Unemployment in South Africa stands at 32%, and the
loss of each mining job is estimated to lead to the
loss of six further jobs in ancilliary industries. End
On Friday the Financial Services Authority in London
called GATA and requested certain information about our
allegations that the gold market is being manipulated and
that the size of the gold loans have become so large
that they pose some sort of significant risk to the
banking system.
As this story suggests, the evidence grows by the day that
our charges that the English gold sale was "politically
motivated" and effected to protect the interests of
"plugged in" bullion banks, are correct.
This story is a VERY exciting development. Central bankers
do not make public pronouncements like this.
We had fun suggesting to you that the cancellation of
Tony Blair's 3 day trip might not be due to "more
study of the Northern Ireland problem" but due to a
much bigger problem for him personally. It now looks
like that just might be the case.
All hell must be breaking loose behind the scenes
in England!
All the best,
Bill Murphy
Le Patron and GATA Chairman
www.lemetropolecafe.com |
