It’s a fitting epitaph to Gordon Brown’s career in government. He started with a piece of dishonest incompetence when he dumped 400 metric tonnes of our national wealth for £175 per ounce and concealed the true reasons for doing so. And he ended with a piece of dishonest incompetence at a time when gold is making new all-time highs at £830 per ounce.
400 metric tonnes is 13,342,500 troy ounces, multiplied by 655 equals a current loss of £8.7 billion. Since gold is conservatively expected to quintuple from here when it takes full account of the deficit spending and hyperinflationary policies of political leaders led by Gordon Brown, we can expect an eventual gross loss of at least £45 billion, ameliorated by several years worth of derisory 1% interest on the sale proceeds of £2.3 billion.
That £45 billion (a conservative estimate; veterans such as Jim Rickards and Jim Sinclair forecast an ultimate gold price of up to 4 times higher) may end up being the least of our problems. The peak price will arise by gold’s reinstitution as a cover clause for the dollar to restore USD creditworthiness; there simply won’t be any gold to be had to shore up sterling at that point. It is the terminal collapse of sterling rather than the loss of £45 billion upwards that will be the true legacy of Brown’s selling off of our national inheritance to bolster the dollar/ bail out bullion banks/ support the new European currency.
It’s easy to become sentimental when seeing Mr Brown and his young family depart Downing Street. But he has laid a mine in our economy that will not fully detonate for months if not years after his departure; and when it goes off our standard of living will be catastrophically and permanently debilitated. Unless David Cameron can now embark on a covert program of re-acquisition.
Gordon Brown’s signature throughout his term in office was dishonesty and incompetence. Let us now see whether the Labour Party elect his henchman in the gold sales (Balls) as the successor.
Telegraph commenter InstantSaver on May 13th, 2010 at 6:26 am
I wish them luck getting their hands on some real gold – none of those shiny plated tungsten ingots either.
ReplyDeleteI hope they do elect Balls - he should keep them out for a very long time!
ReplyDeleteBrown made a very big mistake that will affect everyone in the country not only today's generation but also the generations to come. Yes, what he has done is similar to a bomb that will not detonate now but if it does, all the citizens will suffer.
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