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To: TigerPaw who wrote (4800)8/19/2002 2:50:00 PM
From: Jim Willie CB  Respond to of 89467
 
Asia Central Banks Could be Gold Buyers

SINGAPORE (Reuters) - Asia's reserve-rich central banks are potential buyers of gold to diversify their reserve assets, even as European central banks cut their holdings, a senior official of the World Gold Council said on Monday.

"Gold is back on the radar screens," said Ralston Thiedeman, head of the council's Asia-Pacific official sector, told reporters at the start of a five-day seminar on reserves management, which the council is co-hosting.

"In the last six to 12 months, central banks in Asia have become far more receptive to talk about gold than they were say a couple of years back," he said.

Asia holds over half of the world's near $2.0 trillion of foreign exchange reserves -- and it is mostly held in low-yield U.S. dollar assets, and generally less than five percent in gold.

Gold prices have risen over 10 percent this year, although bullion has come off its $330 an ounce high reached in June, which was its highest since October 1999.

Thiedeman said volatility in global financial markets, a weakening U.S. dollar and low U.S. interest rates were reasons for Asian central banks to diversify their portfolios.

Council statistics, which are based on the market price for gold, showed South Korea held just 0.1 percent of its reserves in gold, compared to over 55 percent in the United States and 35-40 percent in Europe. Pakistan and the Philippines hold around 15 percent of their reserves in gold, and Thiedeman said while the Bank of China has raised its gold holdings -- to 500 tons earlier this year from 395 tons a year ago -- they are still a low proportion, about two percent, of its reserves.

Thiedeman did not give a direct answer when asked if he expected Asia central banks to pick up the gold being sold by their European counterparts. Under the Washington Agreement on Gold, signed in 1999 and running until 2004, 15 European central banks agreed to limit their gold sales to a total of 2,000 tons over the five years.

Industry analysts expect higher bullion sales from European central banks after the agreement expires.

Thiedeman said there was a general consensus among European banks that the agreement would be renewed with a new format and membership would be widened.



To: TigerPaw who wrote (4800)8/20/2002 3:00:00 AM
From: stockman_scott  Respond to of 89467
 
Lame duck Armey becomes Bush critic

By EDWARD EPSTEIN
San Francisco Chronicle
Aug 19, 2002, 8:12am

House Majority Leader Dick Armey, a pillar of partisan Republican conservatism, is leaving Congress after November's election, and he admits his pending retirement has had a wondrous effect on his frankness.

Armey, a country music fan always quick with a colorful quip, is going out with a bang by slamming some of President Bush's major initiatives. Quoting singer-songwriter Jimmy Buffett's "Migration," Armey recently explained his new outspokenness: "You've just got to learn from the wrong things you've done. "

Armey's candid comments may have a lasting effect, Washington analysts say.

The nine-term House veteran of a libertarian bent has roiled the waters in Washington in recent weeks by speaking out against Bush, his fellow Republican and Texan, on such issues as the administration's apparent desire to invade Iraq and its plan to turn millions of Americans into the eyes and ears of the domestic war on terrorism.

Armey also opposed the four-decade-old embargo against Cuba. And in pushing through Bush's plan for a Homeland Security Department, he got the House to vote for a one-year delay in the Dec. 31 deadline to screen all baggage at U.S. airports for explosives, pointing out that the Transportation Department couldn't have met the deadline anyway.

"It's one of the most interesting developments in politics in Washington in the last few months," said Thomas Mann, who studies Congress at the Brookings Institution. "It's kind of refreshing to see a man reborn to his roots and being daringly politically incorrect."

As the No. 2 House Republican, Armey felt compelled to follow the party line. "But he's using his opportunity now not just to stick it to the president, but to articulate positions I'm sure resonate with members on both sides of the aisle," Mann said.

While other Republican leaders are backing Bush's repeated assertion that Saddam Hussein must go, Armey's recent comments against military action are likely to help fuel a national debate, Mann said.

In remarks in Iowa for GOP congressional candidates, Armey diverged from Bush, who says Hussein is developing weapons of mass destruction that threaten Iraq's neighbors and America.

"My own view would be to let (Hussein) bluster, let him rant and rave all he wants, and let that be a matter between he and his own country. As long as he behaves himself within his own borders, we should not be addressing any attack or resources against him," Armey said.

If Bush wants to launch a military strike against Iraq, it is considered likely that he will ask Congress for a resolution sanctioning his action, as he did in September in going into Afghanistan. Members of the Senate already have talked about scheduling hearings on the possible use of force against Iraq, and Armey's view is likely to buttress those who oppose the action.

In his comments on Cuba, Armey admitted that he long supported the embargo as a favor to his two GOP House colleagues from southern Florida, Ileana Ros- Lehtinen and Lincoln Diaz-Balart.

"What you see in the House of Representatives and what you see by way of individual votes - my own is an example - is loyalties to your friends," he said last week in Kansas on his GOP campaign swing.

Armey said he didn't think the economic sanctions against Cuba would last another year. But Bush is a firm supporter of the embargo, which is backed by his brother, Florida GOP Gov. Jeb Bush, and Miami's Cuban exile community. Bush has threatened to veto any legislation calling for easing up on the regime of Fidel Castro.

Michael Franc of the conservative Heritage Foundation said Armey's comments about Iraq and Cuba will spark internal debates within the conservative movement, between natural small-government libertarians such as Armey and those who favor a bigger role for government in foreign policy.

"I think Armey is saying that Congress should be consulted, especially on going to war with Iraq," said Franc, who was Armey's press secretary in 1996- 97.

Domestically, Armey struck a chord in the House when he slammed the Bush Justice Department's plan for Operations TIPS - the Terrorism Information and Prevention System. Originally, the plan called for millions of volunteers - truck drivers, mail carriers, utility meter readers - to report on suspicious activity they see on the streets or in people's homes.

But Armey, who chaired the House's select Homeland Security Committee, which drafted legislation creating the new Cabinet department to run the domestic war against terrorism, pushed through a provision banning such programs. It passed the panel unanimously, and Armey drew praise from his colleagues.

As for airport security, Armey said the Dec. 31 deadline, set in legislation passed last fall after the Sept. 11 terrorist attacks, was unreasonable but that nobody in Congress would admit it. "This Congress is too damned stubborn to admit it made a mistake," he said.

The House adopted a one-year delay in implementation as part of the homeland security bill, but the idea faces an uncertain future when the Senate returns after Labor Day.

In pushing the delay, Armey admitted he felt liberated by his looming retirement.

"I have found the most comforting words in the English language are, 'Dang it, I'm not running again. I'll do the right thing.' "

© Copyright 2002 by Capitol Hill Blue



To: TigerPaw who wrote (4800)8/20/2002 11:09:39 PM
From: stockman_scott  Respond to of 89467
 
Deciding the fall elections

csmonitor.com

<<...Yet if history is a true judge, President Bush, like his father 12 years earlier who also enjoyed high-approval ratings among voters during midterm elections, will see his party lose House seats in Congress. And the delicate Republican hold on that chamber will be lost...>>



To: TigerPaw who wrote (4800)8/21/2002 2:08:37 AM
From: stockman_scott  Respond to of 89467
 
Sharing the Evidence on Iraq

Lead Editorial
The New York Times
August 21, 2002

The Bush administration has floated a succession of possible justifications for war with Iraq — Saddam Hussein's purported links with international terrorism, Baghdad's membership in a worldwide "axis of evil," Iraq's efforts to develop nuclear weapons. Few firm facts have been offered in support of any of these claims, but there have been frequent allusions to secret intelligence information that officials are unwilling to make public.

This is a troubling pattern, especially now that President Bush has said he will base his decisions about Iraq on the latest intelligence reports. Intelligence findings should guide presidential policy. That is their principal purpose. But the country ought not to be led into war on the basis of information the American people are not allowed to share. That is not how our democracy works.

Raw intelligence reports cannot be published without compromising confidential sources and methods. But the basic intelligence evidence that underlies critical national decisions can and must be made public. Past administrations have done that repeatedly, for example, by displaying spy-plane photos of Russian missiles in Cuba in 1962 or releasing cockpit-to-tower conversations recorded during Moscow's downing of a Korean passenger jet in 1983. Before last fall's airstrikes in Afghanistan, Prime Minister Tony Blair of Britain presented a compendium of intelligence findings linking Osama bin Laden and the Taliban to the Sept. 11 attacks. If Mr. Bush means to propose launching a preventive war against Iraq, he must do no less.

The case for publicly presenting the evidence is all the more compelling since many of the administration's past claims on Iraq have been challenged by independent experts. Administration officials themselves acknowledge that there is no convincing intelligence evidence linking Iraq to the Sept. 11 terrorist attacks.

Although Defense Secretary Donald Rumsfeld concedes that the administration has an obligation to put crucial facts before the American people, he continues to make uncorroborated assertions. Earlier this month on NBC Nightly News Mr. Rumsfeld asserted the presence of Al Qaeda members in Iraq. When asked by Tom Brokaw whether there was hard evidence of that, Mr. Rumsfeld dismissively answered, "I know that." Yesterday Mr. Rumsfeld made essentially the same assertion, but was not ready to make the supporting evidence public.

What top national security officials claim to know but refuse to discuss isn't good enough. Americans cannot seriously deliberate issues of war and peace while they are denied the relevant facts.

nytimes.com