created a 20-year low in the gold market
now known as “Brown’s Bottom”
He still has the brass neck to defend this piece of nincompoopery, rich coming from someone who used to complain that in privatizing nationalized industries and utilities Margaret Thatcher was ‘selling off the family silver’. He has given away the nation’s gold reserves.
Quite what the motivation was for this bizarre decision has always remained opaque, though there is a strong suspicion that it was done to help prop up the then nascent but beleagured Euro, presumably so that Smuggo could keep in with his Euro Nabob friends. Perhaps Brown was also trying to lay the ground for the claim of prudence and economic competence to which he still clings, in that flogging it off showed just how strong our economy was under his tutelage.
Though it has now slipped back a tad, in the uncertain world in which we now seem to live one could be forgiven for predicting that the price of gold will go above the psychological barrier of US $1000/fine oz. and stay there for some time to come. The current uncertainties in world finance are just the sort of conditions for which the holding of gold is a sound proposition, but instead Brown failed to maintain this hedge against difficult times to come in order to prop up the vanity currency that is intended to be the keystone of a Federal Superstate that plans to subjugate the UK’s independence if it can.
What was it that the Communists used to boast? That Capitalists would sell them the rope with which they in turn would then hang the Capitalists?
‘Black Wednesday’ was a costly disaster for the UK and, in particular, for the reputation of the Conservative party. But at least the cost to us was a pretty immediate one and the benefit to the economy of its being released from the thrall-ring of the ERM has compensated us many times over for the losses of that day. By contrast Brown’s Blunder is one which shows every sign of going on and on and on with the loss to the UK rising in line with the price of gold.
A useful account of the matter may be found here: note that the Times report made this observation:
Brown offloaded the gold at a 20-year low in the market — now nicknamed the “Brown Bottom” by dealers. The 17 auctions achieved prices for the gold of between $256 and $296 an ounce, with an average of $275. Since then gold has risen sharply in value and stood yesterday at $685. This year, some top investment banks have predicted, it could even rise above the all-time high of $850.
That was written just under a year ago. Now the gold price is hovering around the US $1000 mark and likely to keep on rising for some time to come. And now the man who blew our gold is running the country. Every day and every one dollar rise in the price ought to keep him squirming for quite a while yet.