Jim Sinclair’s Commentary
Our friend Ronan, a member of our community, has done an exhaustive examination of the appointment of Carney, an alumni of Goldman Sachs. You will better understand the course of events if you review this drama that might as well be made into a movie.
It appears Carney was a shoo-in all along. There is some telling evidence from looking at the way the open competition application process was forced in by some elements in HM Treasury. See below.
There is an interesting Freedom of Information file on the HM Treasury website
The file (PDF below) was released in 2005 in response to a question about the appointment of Mervyn King as Governor in 2003
The file contains a few pages of Q&A pointers or advice that look like they were written for HM Treasury staff fielding questions – see page titled "New Governor – Points to Watch".
Interestingly, the answer to question 5, namely "Why wasn’t an open competition held for this position?" is
Answer: "Consistent with Nolan Principles, gubernational positions at the Bank are excluded from open competition because they are market sensitive. Ministers are concerned that it would fuel unhelpful speculation about the appointments in advance to invite a wide range of applicants, many of whom would be unsuitable. It is vital that such decisions are handled with the utmost of care."
The "Nolan Principles" aka the "Seven Principles of Public Life" were recommendations drawn up by a commitee which was established to investigate standards in public life at the request of John Major. The principles are: Selflessness, Integrity, Objectivity, Accountability, Openess, Honesty, Leadership.
So, why did HM Treasury do an about turn on its own internal view on the Governor’s appointment process? And did they flout the Nolan Principles? And try to fuel unhelpful speculation?. Well, it seems that George Gideon Oliver Osbourne "suddenly" got it into his head to hold an open competition earlier this year.
George, the heir apparent Baronet of Ballytaylor in the County of Tipperary and Ballylemon in the County of Wexford, a.k.a. The Chancellor, was quoted a few month’s ago on the Governor’s appointment in the Telegraph (http://www.telegraph.co.uk/finance/jobs/9536382/Government-to-advertise-Bank-of-England-governor-job-for-first-time.html): saying
"I have decided that the appointment of his successor will be conducted through a fair and open competition. For the first time in history the post will be advertised," Mr Osborne told parliament.
More revealingly, the Daily Mail quotes from "a source":
The open nature of the contest could potentially result in an overseas applicant filling the role of governor, but the source said the successful candidate would need experience of "macro-economics and banking and obviously some knowledge of the British economy".
The source added: ‘The Chancellor is very determined that we have a proper process that enables a wide field to apply and it is a process we will go through to ensure the best person gets the job.’
So who may have whispered in George’s ear? It appears he wanted an overseas applicant. The previous closed competition may have not facilitated this.
Look again at the Treasury’s Freedom of Information file (above) on Mervyn King. Its makes patently clear that they did a pretty thorough search (depending on what the definition was) without an open competition. But maybe the search would not bring up the ‘right’ candidates:
Examples in the pdf:
(Letter dated November 2002 from the Principal Private Secretary) "Following a rigorous appraisal of the potential candidates to succeed Sir Edward…"
(Action item list): Are you happy with the appointment process for Governor set out in Appendix A?" Do you wan us to look at any other candidates?"
(Page titled candidates): "There are few potential candidates for the post of Governor. We have identified six who broadly meet the requirments above. etct etc. Appendices B and C. Do you want us to add anyone to the shortlist? etc etc"
So was Carney waiting in the wings? It appears so.
By the way the 7 Nolan Principles make interesting reading (not just for Mervyn King of G30 and BIS board fame), but especially for international former banker Carney, a former Goldman alumni, board member of the BIS and private body G30 member who will now hold the reigns at the BoE.
Holders of public office should take decisions solely in terms of the public interest. They should not do so in order to gain financial or other material benefits for themselves, their family, or their friends.
Holders of public office should not place themselves under any financial or other obligation to outside individuals or organisations that might influence them in the performance of their official duties.
In carrying out public business, including making public appointments, awarding contracts, or recommending individuals for rewards and benefits, holders of public office should make choices on merit.
Holders of public office are accountable for their decisions and actions to the public and must submit themselves to whatever scrutiny is appropriate to their office.
Holders of public office should be as open as possible about all the decisions and actions that they take. They should give reasons for their decisions and restrict information only when the wider public interest clearly demands.
Holders of public office have a duty to declare any private interests relating to their public duties and to take steps to resolve any conflicts arising in a way that protects the public interest.
Holders of public office should promote and support these principles by leadership and example.
I question the assumption that gold will probably not be confiscated. When this financial mess comes to an end, the US will have to issue a new gold backed currency and since we have no proven gold reserves, gold will have to be confiscated to meet this need.
What makes you think it will be the dollar that gold is attached to? It will not be the US dollar that becomes the new reserve currency. Therefore your question defaults. It cannot be answered because your circumstances as outlined are not going to happen.
This is breaking news “Deutsche Bank Fulfilled Recent Gold Repatriation Request With Tungsten Salted Gold” offered by a blog.
What troubles me is that for every one hundred mentions of repatriation on Google Search it is all bloggers, and no other source of information. To know the unknowable and purport to be known as fact would require an extremely high position in finance.
We hold MSM’s feet to the fire about inaccurate news or assumptions. We in the precious metals industry should demand the same level of ethics as demanded of MSM.
Apparently we’ve developed two (2) new holidays: Black Friday and Cyber Monday. With our debt situation, don’t think they will be long term holidays. Maybe the American people should consider buying some precious metals instead of electronic junk and new stuff (things) that eventually pile up in their garage. Expensive junk from abroad.
Just my humble opinion,
Consumption in the US has been raised to patriotic levels. In truth now consumption is a form of debauchery and madness of a debt ridden sheeple population certainly headed for a form of oblivion.
On the subject of treaties that are meant to disarm the public, it might be interesting to review:
"Reid v Covert 1957, the Supreme Court ruled that no treaty with a foreign government shall supersede the U.S. Constitution in America.
"Internal enemy" (i.e., countrymen with dissenting views) was the most feared enemy of the Bolsheviks and the scarecrow propaganda staple that Stalin used for skillfully seizing total control of the party, government and the entire country. Fortunately for the world, he did not have sufficient technology, money and military machinery to go beyond the Soviet borders. If looking for enemies within is the direction that things are heading, you may have to leave for Buckreef in Tanzania even before the state defense forces are disbanded.
The reason I give the disbanding of the state defense forces as a timing tool is because it violates at least two major items of the US Constitution that are still left.
Thank you for your service to the community. I hope you are keeping well.
As you may have noticed, the Bank of England just appointed Mark Carney as Governor designate to succeed Mervyn King. What the mainstream media (MSM) has not focused on, is that before he entered ‘Public Service’ he was at Goldman Sachs for 13 years.
Goldman gets their man in at the BOE. Just unbelievable. It is indeed going to be "Keep Calm and Print More Money".
Best wishes and thank you for all your work,