"..a bardy view!"

A Fool and his Gold….

The UK's debt has reached a massive £178 trillion, which through a series of significant cuts in public services, increased taxation and decreased spending, should if we're lucky, reduce it by half come 2017. Are we about to enter a new age of austerity? Well, at least it will result in some sensible home economics.

But let's be certain where the full blame lies. It lies with a mickey-mouse government which rode a tide of unregulated financial markets and encouraged everyone to dip in and take a wad. The notion that it could ever end was preposterous and incredible. But it did!

The fiscal credentials of the UK PM will be scrutinised by history, and the period viewed as a time of wanton excess, and blind borrowing fuelled by greed. 

The man who is now scratching around desperately for solutions and placing the blame on global recession is the same man who ten years ago decided to auction off 60% of the country's gold reserves at a price which at the time was at a twenty year low.

It was the Chinese who purchased much of it, and have subsequently made over £1 billion profit. Sold then at £275 an ounce, the price today is £1000.

As more and more people are using gold as a hedge against economic uncertainty, stocks are in short supply and the price has quadrupled. Hence the reason that the commercial airwaves are awash with companies trying to buy the stuff, encouraging the gullible to dig out their unwanted jewellery and send it off in a pre-paid envelope.

These companies are happy to pay the same price as it was worth in 1999, because it keeps the punter happy with some extra cash, thereby allowing the buyers to subsequently make a 75% profit. Indeed, they could offer an extra 20% and still be wallowing.

I don't know anyone who has got unwanted gold, but if I had some I would sell it on the going market, and certainly not pass it to someone who is going to rip me off. Yet this is what these companies are effectively doing, by preying on the ignorance and desperation of debt-ridden individuals. And it's all quite legal.

But back to Gordon Brown. Yes – it's that man again! He sold the gold to diversify the nation's portfolio and bought up hard currency like dollars, euros and yen. Big mistake. It's estimated he has lost this country £5 billion as a result. It may be a drop in the ocean compared to the national debt, but still a significant sum if that money has to be replaced by cuts in crucial public services. It's estimated that since coming to power they have lost £12 trillion on their hare-brained schemes and new-socialist visions.

Much of this money of course was to pay for the rampant spending of a government espousing the mantra "education, education, education". Twelve years down the line we know the result. Three million unemployed and one third being 18 – 24 year olds without a job, the largest ever recorded, and many not likely to find a decent job for some time. The lost generation – fooled, exploited, bamboozled and abandoned.

I'm tired of complaining about this government. I only know that come May 2010 they will be gone, and whoever succeeds them will have to pick up the pieces.

I'd like to see the whole bleeding lot of them, from Blair down charged with crimes of incompetence against the state. But that won't happen. Instead they will become peers and knights of the realm, associate and non-executive directors of multi-nationals, charities, institutions and quangos – with all the perks that entail.

Just another kick in the teeth for the mugs who had to put up with them for the past thirteen years and the ones who ultimately must pay the price for even more years to come.



September 16, 2009 - Posted by | Politics

1 Comment »

  1. Entertaining post as usual. It’s always the same old story. Brains and good sense make it and then a shower ruin it and the process repeats itself over and over and over again.When will we ever learn?
    I often wonder just how much of the Nation’s debt they gifted to Africa’s great leaders. Idi Amin and dear old Robert Mugabe being prime examples. Fine men and real fine examples of a good wager. Sorry have to leave before I throw up.


    Comment by Spook | September 17, 2009 | Reply

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