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To: PaulM who wrote (36227)	6/30/1999 10:27:00 PM
From: The Barracuda™	Respond to of 116898

Andy Smith shouldn't tempt fortune

To: PaulM who wrote (36227)	6/30/1999 11:18:00 PM
From: long-gone	Read Replies (1) \| Respond to of 116898

<<"Andy Smith...described the move as 'bizarre'...adding that the rise was not significant.'You have got to get to two or three percent and stay there to spook committed shorts,' he said.">> snif-snif

To: PaulM who wrote (36227)	7/1/1999 3:17:00 AM
From: Alex	Read Replies (1) \| Respond to of 116898

6/30/99 - Top US House Republicans oppose IMF gold sale for debt relief <Picture> By Steve Marcy, Bridge News Washington--Jun 30--US House Republican leaders today told Bridge News they are opposed to a Group of 7 plan for the IMF to sell a small part of its gold reserves to finance an expansion of an existing debt-relief program for the world"s poorest, most heavily indebted countries. However, the second and third top House Republicans said they don"t know how or when the House will act on the issue. For the sales to go forward, Congress must approve them. House Majority Leader Dick Armey of Texas, the second in command, said the proposed sale is akin to "selling the family jewels so that you can engage in a destructive policy." House Majority Whip Tom DeLay, the House"s third-ranking Republican, said the sales would "set a bad precedent" because "anytime the IMF got in trouble, anytime they want to do something they shouldn"t be doing, they"ll sell gold." DeLay said he wasn"t heavily versed in the issue and there hasn"t been much discussion of it so far. "I"m not a financial wizard, but it"s starting to get on the radar screen, and it concerns me greatly," he said. "They"re buying themselves liquidity without accountability," Armey said in explaining his opposition. "I"ve not been happy with the IMF. I don"t think it"s been an agent of stability for world markets. I think it"s been very destructive all over the world." "We"ve tried to hold them accountable," said Armey, who was chairman of the Economics Department at North Texas State University before his election to Congress in 1984. "To me, selling gold is just a way to put themselves right back where they have been." Sales advocates have said the amount IMF would sell is too small to have any impact on world gold markets. Armey said he also wasn"t worried about the sales" impact. "I"m not worried about what they"re doing in world gold markets," Armey said. "That"s just money. I"m worried about what they do by way of buying themselves the ability to leverage bad economic policy without being accountable." The G7 at its summit meeting in Cologne last week approved IMF selling between 5 million and 10 million troy ounces of gold, about 5% to 10% of its reserves. Timing of the sales wasn"t specified, but Treasury Secretary Robert Rubin has said the sales would be designed so they would have no market impact. Rep. Jim Saxton, R-N.J., plans to introduce legislation that would prevent the IMF from selling its gold reserves unless it sells them back to the countries that contributed the metal originally to the IMF"s reserves. Armey said he didn"t know enough about Saxton"s legislation to say whether he could support it. However, he did send House members a letter Tuesday saying, "if the IMF does not need the current gold reserve, the profits from the IMF gold sales should be returned to the contributing nations." Bridge News, Tel: (202) 662-7285 Send comments to Internet address: metals@bridge.com