Duncan’s Economic Blog

Wasting our money.

Posted in Uncategorized by duncanseconomicblog on April 28, 2009

The Tories love to bang on about how Brown ‘cost Britain $7bn’ with his sale of gold reserves at the ‘bottom on the market’.

I’ve never really understood this argument. Is it premised on us selling our gold now? What if it goes up further? Surely we should have sold above $1,000 per ounce back in February this year or last March last?

Actually scratch that. Thatcher should have sold all the gold in January 1980 at $835 then bought it back at only $291 in March 1985. She could have then sold it at $496 in April 1987. Or is this getting silly?

I’ll tell you something sillier.

According to John Hawksworth, PWC’s chief economist, if, instead of blowing the money from the North Sea we had saved it, then right now the UK would be sitting on a sovereign wealth fund worth £450bn, bigger than the funds in Russia, Kuwait and Qatar combined.

So , let’s be clear on this – Brown’s gold sales: £4.8bn, Thatcher’s squandering of oil revenue: £450bn. People who live in glasshouses and all that…