DID McRUIN FLOG OUR GOLD TO BAIL OUT BANKS?
By Pete Moore On July 5th, 2012
Truly, these are times of corruption.
We know it as Brown’s Bottom, Gordon Brown’s sell-off of our gold in 1999-2002 after suppressing the price to 20-year lows. Alot of rumour has swirled around since then as to why, but when you’re as bonkers and incompetent as McRuin what other reason do you need?
Thomas Pascoe in The Telegraph makes his own allegations: he alleges that Brown sold off our gold as cheaply as possible so that a number of troubled banks could profit.
It seems we learn of incredible corruption every day now. The scale, frequency and sheer brazenness of the organised crime is too much to take in, even by someone like me who regards the government/banking nexus as just that, organised crime. But if these allegations are true then it’ll blow my socks off.
It’s getting to the point I don’t even want criminal investigations into the Ruling Class anymore. I just want to hang them all.
I was going to say something substantially identical, but these comment to the Telegraph kinda nails it. This is all Monday morning quarterbacking.
What will the price of gold be ten years from now? No one knows.
Jolly good work, Phantom. You managed to find the one comment, from almost 300 at time of writing, in defence of Brown.
“What will the price of gold be ten years from now? No one knows.”
Ask Ron Paul.
In 2001 he predicted the housing bubble, the derivatives bubble and that gold might go as high as $2000/ounce. Very nearly there Oh Great One! Without Jamie Dimon and other criminals suppressing the gold price it would be 3 out of 3 already for America’s greatest man.
Enough with your red herrings, Phantom. The point of the post is the allegation that Brown suppressed the price of gold at the time to advantage bankers by selling them our gold.
It’s an allegation of extreme corruption.
We are endlessly aware that Ron Paul predicted everything, including the final score of tonight’s Mets-Phillies game.
But let’s look at the facts.
As expressed in US dollars ( not the same as UK pounds, but probably close enough ), here is a 20 year price chart in US dollars
Not inflation adjusted dollars, the actual dollars it would cost to buy an ounce of gold.
Brown sold off UK gold assets at the end of a remarkably stable and stagnant 20 year period during which the price of gold didn’t change much at all. There were many sellers of gold over that three year and twenty year people who all made the same mistake that he did. Some of these sellers probably were other governments.
The real gold boom started around 2005. I see a bubble, you see the iron laws of whatever.
But retroactive criticism is meaningless. Do we have a record of British critics who criticized Brown’s actions at the time? Anyone can criticize him and mock him now. That’s easy. But who in British economic / political life criticized him in 1999-2002? Surely there were British Austrians then who have since been proven correct?
Phantom -
There’s your problem.
You see a boom, an Austrian sees the predictable correlation between M2 and gold prices. A “boom” is an inflationary bubble. There’s no bubble in gold prices. As I’ve told you before, the gold price is not so much an appreciation in gold’s value but more a reflection of paper money’s decline in value due to printing.
“But retroactive criticism is meaningless.”
Enough of your red herrings. I’ve again cited the Sage of Texas and his astonishing ability to see the future. I’ve cited the many Austrians who predicted our Keynesian depression. There’s nothing retroactive about Austrian economics and its remarkably powerful tools for understanding the world.
Here’s a little tip for you which I’ll follow up on soon, brought to you by the power of Austrian Business Cycle Theory: China’s economy, the “mixed” type you laud, is tanking big time.
Right, get back on topic, which is the suggestion of Brown’s criminality. No more red herrings.
Even your little Seeking Alpha is calling it a Gold bubble now.
So, we can’t quote any British Austrians in 1999-2002 who criticized the gold sales. They’re all acting the genius now cuz the price went up.
Phantom -
Yes, I’ll just nip off and plough through a load of books and pamphlets to answer your stupid question.
Time and time again I have demonstrated that Austrian economists predicted the housing boom, the inevitable crash and the consequences of government attempts to re-inflate a bust economy. That you ask for “British” Austrian forecasts demonstrates a facile nature and economic ignorance on your behalf.
It’s time you took your promised leave.
This is not ancient history. We speak of a ten year period. I’d have thought that you’d have been conversant in the British issues over this past decade, so that you wouldn’t need to look anything up.
You don’t know any British figures who criticized the action at the time. Why not say so?
Perhaps there were none. But they’re oh so critical now, me boy.
Phantom -
We speak of a 13-year period, which is jurassic in internet terms. Yes, commentators did criticise Brown at the time and no, I won’t indulge your bovine rudeness.
I’ve asked you before and now I’m telling you: stay on topic.
Brown sold off the UK’s gold reserves because the bank of his crony, Gavyn Davies of Goldman Sachs, had taken a position which would have lost it hundreds of £millions unless a price fall could be engineered, and it was. I wrote so on this site at least two years ago, and the DT claims to have just found out?
Allan@Aberdeen -
Not Goldman Sachs, which the allegations say was not in trouble. They do suggest that Gavyn Davies was involved, however, to get the gold flogged on behalf of other banks.
Either way, Gavyn Davis of Goldman Sachs was involved. No-one can seriously believe otherwise.
Pete – I’m sure that it was GS which had taken the position against a price increase and was heavily exposed. I’ll try to dig up the original sources from a couple of years ago but that waits till tomorrow.
Pete
You are strident and belligerent in your views, and are increasingly hostile when challenged. Or when you are proven wrong, which is beyond easy to do.
BTW your chart does not show any corrolation between M2 and the gold price between 1981 and 2002 at least, since there was none. M2 went up, gold price was flat. You’d have known this had you studied your own chart with an open mind. The chart that conveniently does not show gold prices.
Here is the 30 year chart that shows that the price of gold was flat during 1980-2002.
http://goldprice.org/30-year-gold-price-history.html
Good bye- i don’t do echo chambers. Have fun with Allan.
As I always say, when faced with a choice of explanations between cock-up and conspiracy, choose cock-up every time. Not least because conspiracy implies a level of collaboration and intelligence and ability which is unrealistic, given the people and isntitutions involved and their conflicting interests.
Indeed. That way, you can just switch off your mind and not overload it by having it challenged by uncomfortable facts. The Manhattan Project then becomes the biggest ‘known’ cock-up in history.