One of the biggest jokes going around in the U.S. is that the Treasury Department is little more than a 'trading desk' for Goldman Sachs. That is because several of the most recent Treasury Secretaries have worked for the Wall Street giant, and their touch extends even beyond Washington and into the halls of the European Commission in Belgium.
So with this in mind it should come as no surprise that the new head of the London Gold markets is a former executive with one of the most manipulative central banks against the gold price.
One of the most interesting points in the previous article referred to the very recent appointment of a very recently departed Bank of England senior staff member, and former head of the Bank of England Foreign exchange Division, Paul Fisher, as the new ‘independent‘ chairman of the LBMA Management Committee / ‘Board’. Paul Fisher has also in the past, been the Bank of England’s representative, with observer status, on this very same LBMA Management Committee (now LBMA Board) that he is now becoming independent chairman of. Fisher is replacing outgoing LBMA Board chairman Grant Angwin, who if from Asahi Refining (formerly representing Johnson Matthey). - Bullion StarThe significance of this appointment is that London currently remains the most important gold market in the world, and has the authority to set prices two times a day. However this power is being threatened very strongly by China, which now has the largest physical gold market in the world based in Shanghai.
And on a side note, it is also extremely interesting to see how most of the world's central banks are treating Deutsche Bank these days, especially in light of the insolvency crisis they are currently experiencing. After all, they were the ones who informed regulators earlier this year that central banks, including the Bank of England, have been manipulating the price of gold for years.