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Alasdair Macleod: Are the central banks running a fractional gold system?
11:46p ET Wednesday, December 15, 2010
Dear Friend of GATA and Gold:
Economist and former banker Alasdair Macleod tonight reflects on GATA consultant Robert Lambourne's study, published in November (http://www.gata.org/node/9331), about the obscure, misleading, and likely duplicitous gold accounting of the Bank for International Settlements and the fractional reserve gold banking scheme this accounting implies is being run by Western central banks.
Macleod writes: "China and Russia must be watching this with great interest. We can assume that their intelligence services are more aware of the true position than the general public, and if they also conclude that the Western central banks are running a fractional system using sight accounts, this knowledge hands them great economic power."
Actually, Russia's central bank has at least suspected as much since the bank revealed itself in 2004 as a close observer of GATA's work. While GATA previously had had no contact with the Bank of Russia, nor with any Russian government official, the Bank of Russia's deputy chairman, Oleg V. Mozhaiskov, went out of his way to mention GATA in his address to a meeting of the London Bullion Market Association held in Moscow in June 2004. Mozhaiskov's address was delivered in Russian and the only English words in it were "Gold Anti-Trust Action Committee." While GATA learned of this because the LBMA distributed copies of Mozhaiskov's speech to participants in the Moscow meeting, the LBMA refused GATA's request for a copy. GATA's request for a copy was granted some weeks later by Mozhaiskov himself, who insisted on directing the English translation.
GATA has always construed Mozhaiskov's address at the LBMA meeting as a warning to the Western bullion bankers that Russia was now on to their racket and as the preface to the Bank of Russia's demanding the return of Russian national gold from price-suppressing leasing operations by the bullion banks in London.
Many relatively recent GATA supporters may not have come across the Mozhaiskov address, an early milestone in the international currency war that now rages. You can find it at GATA's Internet site here:
Macleod's commentary is titled "Are the Central Banks Running a Fractional Gold System?" and you can find it at his Internet site, Finance and Economics, here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
Sona Drills 85.4g Gold/Ton Over 4 Metres at Elizabeth Gold Deposit, Extending the Mineralization of the Southwest Vein on the Property
Company Press Release, October 27, 2010
VANCOUVER, British Columbia -- Sona Resources Corp. reports on five drillling holes in the third round of assay results from the recently completed drill program at its 100 percent-owned Elizabeth Gold Deposit Property in the Lillooet Mining District of southern British Columbia. Highlights from the diamond drilling include:
-- Hole E10-66 intersected 17.4g gold/ton over 1.54 metres.
-- Hole E10-67 intersected 96.4g gold/ton over 2.5 metres, including one assay interval of 383g of gold/ton over 0.5 metres.
-- Hole E10-69 intersected 85.4g gold/ton over 4.03 metres, including one assay interval of 230g gold/ton over 1 metre.
Four drill holes, E10-66 to E10-69, targeted the southwestern end of the Southwest Vein, and three of the holes have expanded the mineralized zone in that direction. The Southwest Vein gold mineralization has now been intersected over a strike length of 325 metres, with the deepest hole drilled less than 200 metres from surface.
"The assay results from the Southwest Zone quartz vein continue to be extremely positive," says John P. Thompson, Sona's president and CEO. "We are expanding the Southwest Vein, and this high-grade gold mineralization remains wide open down dip and along strike to the southwest."
For the company's full press release, please visit:
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Prophecy Drills 71.17 Metres of 0.52% NiEq
(0.310 % Nickel 0.466 g/t PGMs +Au and 0.223% Copper)
from surface at Wellgreen Project in the Yukon
Prophecy Resource Corp. (TSX-V: PCY) reports that it has received additional assays results from its 100-percent-owned Wellgreen PGM Ni-Cu property in the Yukon, Canada. Diamond drill holes WS10-179 to WS10-182 were drilled during the summer of 2010 by Northern Platinum (which merged with Prophecy on September 23, 2010). WS10-183 was drilled by Prophecy in October 2010. Highlights from the newly received assays include 71.17 metres from surface of 0.52 percent NiEq (0.310 percent nickel, 0.466 g/t PGMs + Au, and 0.233 percent copper) and ended in mineralization. For more drill highlights, please visit: