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McEwen acknowledges central bank intervention against gold, cites GATA
10:40p ET Wednesday, March 12, 2014
Dear Friend of GATA and Gold:
GATA got a compliment yesterday from Goldcorp founder Rob McEwen, now CEO of McEwen Mining --
-- who seems to have become the first major mining executive to speak candidly about and to acknowledge central bank intervention against the price of gold.
McEwen's comments came in response to a question during McEwen Mining's fourth-quarter and year-end financial results conference call. He was asked what he thought of the growing number of complaints about manipulation of the gold market and whether it would be good for him to complain about it to the Bank of Canada.
McEwen's reply begins at the 24:07 mark in the recording archived here:
A slightly edited transcription is appended.
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
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Comments by McEwen Mining CEO Rob McEwen
McEwen Mining Fourth-Quarter and Year-End Results Discussion
Tuesday, March 11, 2014
As for manipulation, it has been the mandate of central banks around the world to manage their money, and they have a lot of tools at their disposal, such as the Federal Reserve's saying, "Interest rates are going to be here -- 50 or 100 basis points -- and locked there for a period of time."
... Dispatch continues below ...
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They have all sorts of levers they can move around and one of those would be metals prices. It's quite reasonable to expect that the central banks are going to be in there trying to manage the economy of the world, and metals prices would be one of those areas.
There have been a number of very good attempts -- GATA is one -- to highlight what they believe is manipulation that goes beyond the mandate of central banks. They have raised the awareness of it but that hasn't changed the habits of government. I would say the governments are thinking that they're doing it for the good of the country and they can do anything they want. I think making a comment to our central bank about it would be like pouring water on the back of a duck, unfortunately.
The market will catch up with this. The Federal Reserve is saying that it is going to keep rates fixed for a period of time. Maybe they can do it in the short term but history suggests that over the intermediate and long term it's impossible to hold certain parts of the economy together in static. There are lots of dynamics out there and you're starting to see metals prices improving, and I'm quite encouraged by the firming I'm seeing in prices right now.
There's a complancency in the broad market with people believing that all the issues that brought about the collapse a few years back have been dealt with, and that's far from the truth. But it's an easier thing to believe and a more pleasant way to look at the world than to look at $17 trillion-plus of debt by the United States alone and to take that out over the whole world.
We still have quite a distance to go and if interest rates were to go up, the cost of servicing the debt is going to cripple governments and send shockwaves around the world.
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