Tuesday, January 08, 2008

A very costly decision

Back in 1999, our then chancellor, Ol' Golden Brown, no less, took the unprecedented decision to unload a large proportion of the UK's gold reserves at a time when the price of gold was at the bottom of the market. Dealers still term that price as the "Brown Bottom". (Full story in The Times).

At the time, there was much concern, and many forecasts that it would cost the UK dear. "The 17 auctions achieved prices for the gold of between $256 and $296 an ounce, with an average of $275." The total loss, back in April this year was estimated at some £2 Billion. (It would have been considerably more had not the Euros purchased with much of the proceeds not appreciated in value.)

Well, the price of gold now stands at a record $872.10 per ounce. That means that our PM is directly responsible for a loss to the UK of some £3 Billion+.

Now if I (or anyone else for that matter) had taken such an appalling decision and lost such an immense amount in business I'd have been sacked on the spot. It just goes to prove that there is no such thing as accountability in politics nowadays.

ADDENDUM - Brown's big hitter - When in the mire, don't whatever happens try and sort it out. Hire a better person to explain why it isn't.

ADDENDUM 2 - Unhappy new year to you all!

1 comment:

Peter said...

Dave, Dave, Dave.

I saw this covered only the other day on the Andrew Marr show.

I say 'covered', as it was mentioned, but between one of our major national brodcast interviewers and our now PM (then Chancellor) there did not seem, as such, to be any answers, explantions, or other clearing the air on this issue.

Hence the reign of our 'prudent' Dear Leader rolls on unchallenged by matters of record, accountability, performance, etc.

The Indy today refers to a piece by Howard Jacobson where this country is now in a downward spiral due, in no small measure, to incompetence being not just forgiven but more often rewarded across the board... in boardrooms and departments the length and epths of the UK.

Yet some it seems are ever richer even than the Yanks. Not quite how I am feeling, but then maybe I move in different crop circles. Or maybe the Yanks are just plain broke. It's all coming home to roost, as we are currently on a headless organic chicken bent, at least for this week in luvvie-land, so who knows?

Wall. Revolution. First. Against?