The Governor of the Bank of England lost his nerve yesterday and flooded the capital markets by providing a further £10 billion of emergency money.

Mervyn King who a few short weeks ago appeared to have found his backbone by standing steadfast and not coming to aid of the ‘free’ market, panicked.

The Bank of England will accept “mortgage collateral” following the US Federal Reserve and the European Central Bank in an attempt to soften the blow highlighted by the troubles up there in Newcastle with the Northern Rock.

The printers roll and more paper money is created thus fanning the flames of inflation and sending more investors into the arms of that historically safe haven GOLD, which is trading at $733.70 as we write.

Have a good one!