Did Gordon Brown deliberately sell UK Gold reserves cheaply

[HarryW]

I've often ponder is Gordon Brown as stupid as the press make out. Do you agree he is stupid enough to have sold the UK gold reserves off cheaply or do you suspect, as I do, he is cunning enough to use it to hide another motive. He has always remainded relatively silent on this subject, lets face it who likes to be ridiculed and not respond, perhaps now is a good time to challenge him on it.

I put it that to keep the Government bonds and the stock market ponsi schemes fully inflated, which as chancellor he was benefiting enormously, it helped pay for the pet projects for so long. He announced the sale of the gold early so that the price would be depressed and then flooded the market to help keep it depressed. This helped keep the paper market that is the stock exchange bubble fully inflated, if not accelerate it's expansion. It could be construed that this policy could be part of, if not, the source of the eventual collapse of the over inflated markets.

Discuss..............................

[HarryW]

anonymous said:

[redacted]

Don't know that theory, perhaps another day, unless it's connected to my proffering care to contribute.

[HarryW]

anonymous said:

[redacted]

Perhaps the return to the gold standard is whats required to eliminate the boom and bust El Gordo was so found of claiming he'd done, something tangible has been good for millennia and will return one day.

[HarryW]

anonymous said:

[redacted]

......or the next crash to be bigger again than the last one. Lets face it, it's only one step up from those rushing to withdraw their money out of the failing banks to converting it to precious metals and gems. The current paper based promise system relies on public confidence and snake oils salesmen, I predict that in my childrens life time it will happen.

[HarryW]

anonymous said:

[redacted]

Getting back to my original proposition, did El Gordo deliberately sell the shiny stuff cheaply to depress it and inflate the paper stuff for short term betterment and long term pain.............

[HarryW]

Dogwatch said:

Gold was unfashionable at the time, inflation was low and looked like remaining so, so he probably reckoned he could get a bit of cash in the till without the public complaining too much.

And it didn't.

Much as I dislike (and distrust) him I agree he is an intelligent bloke. However he has flaws like the rest of us and intelligent people sometimes do stupid things.

.....but nobody is stupid enough to announce in advance they are going to do it in a market economy, least of all the Chancellor of a market economy, stupidity doesn't even get close.

[HarryW]

fbrs said:

I used to work with one of the gents mentioned here, which anyone interested should definitely read, http://www.timesonline.co.uk/tol/news/politics/art.... He and some of the biggest traders in London had been summoned to advise the chancellor on the gold sales. Their advice was unanimous, that selling now was terrible timing due to the lowest price in decades and they all expected it to go higher and secondly that to sell by auction in the manner brown wanted would absolutely guarantee the lowest price. To their horror and massive disgust they were completely ignored.

I can't believe brown survived the gold scandal; what he has in stupidity and arrogance he must make up for in political skill somehow. I loathe this inept man with a passion.

Edited by fbrs on Thursday 22 April 03:35

But isn't this what I'm talking about, the decision to sell and how to sell was apparently made with such crass stupidity that it could be construed as genius for another reason.........