What Really Happened to “Brown’s Bottom”

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Revealed: why Gordon Brown sold Britain’s gold at a knock-down price

By Thomas Pascoe July 5th, 2012

http://blogs.telegraph.co.uk/finance/thomaspascoe/100018367/revealed-why-gordon-brown-sold-britains-gold-at-a-knock-down-price/

Britain’s gold reserves were sold at a ludicrously low price

A great deal of Gordon Brown’s economic strategy would strike a sane man as troubling. Not a great deal was mysterious. The orgy of consumption spending, frequent extensions of the cycle over which he would “borrow to invest”, proclamations of the “end of boom and bust”: these are part of the armoury of modern politicians, of all political hues.

One decision stands out as downright bizarre, however: the sale of the majority of Britain’s gold reserves for prices between $256 and $296 an ounce, only to watch it soar so far as $1,615 per ounce today.

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When Brown decided to dispose of almost 400 tonnes of gold between 1999 and 2002, he did two distinctly odd things.

First, he broke with convention and announced the sale well in advance, giving the market notice that it was shortly to be flooded and forcing down the spot price. This was apparently done in the interests of “open government”, but had the effect of sending the spot price of gold to a 20-year low, as implied by basic supply and demand theory.

Second, the Treasury elected to sell its gold via auction. Again, this broke with the standard model. The price of gold was usually determined at a morning and afternoon “fix” between representatives of big banks whose network of smaller bank clients and private orders allowed them to determine the exact price at which demand met with supply.

The auction system again frequently achieved a lower price than the equivalent fix price. The first auction saw an auction price of $10c less per ounce than was achieved at the morning fix. It also acted to depress the price of the afternoon fix which fell by nearly $4.

It seemed almost as if the Treasury was trying to achieve the lowest price possible for the public’s gold. It was.

One of the most popular trading plays of the late 1990s was the carry trade, particularly the gold carry trade.

In this a bank would borrow gold from another financial institution for a set period, and pay a token sum relative to the overall value of that gold for the privilege.

Once control of the gold had been passed over, the bank would then immediately sell it for its full market value. The proceeds would be invested in an alternative product which was predicted to generate a better return over the period than gold which was enduring a spell of relative price stability, even decline.

At the end of the allotted period, the bank would sell its investment and use the proceeds to buy back the amount of gold it had originally borrowed. This gold would be returned to the lender. The borrowing bank would trouser the difference between the two prices.

This plan worked brilliantly when gold fell and the other asset – for the bank at the heart of this case, yen-backed securities – rose. When the prices moved the other way, the banks were in trouble.

This is what had happened on an enormous scale by early 1999. One globally significant US bank in particular is understood to have been heavily short on two tonnes of gold, enough to call into question its solvency if redemption occurred at the prevailing price.

Goldman Sachs, which is not understood to have been significantly short on gold itself, is rumoured to have approached the Treasury to explain the situation through its then head of commodities Gavyn Davies, later chairman of the BBC and married to Sue Nye who ran Brown’s private office.

Faced with the prospect of a global collapse in the banking system, the Chancellor took the decision to bail out the banks by dumping Britain’s gold, forcing the price down and allowing the banks to buy back gold at a profit, thus meeting their borrowing obligations.

I spoke with Peter Hambro, chairman of Petroplavosk and a leading figure in the London gold market, late last year and asked him about the rumours above.

“I think that Mr Brown found himself in a terrible position,” he said.

“He was facing a problem that was a world scale problem where a number of financial institutions had become voluntarily short of gold to the extent that it was threatening the stability of the financial system and it was obvious that something had to be done.”

While the market manipulation which occurred when the gold reserves were sold was not illegal as the abuse at Barclays may have been, the moral atmosphere in which it took place was identical.

The crash which began in 2007 and endures still was the result of an abdication of responsibility across the financial sector. This abdication ranged from the consumer whose thirst for goods pushed him beyond into grave debt to a government whose lust for popularity encouraged it to do the same.

Responsibility is evaded by all bar those on whose shoulders it ought to rest. The gold panic of 1999 was expensively paid for by the British public. The one thing politicians ought to have bought with that money was a lesson in the structural restraints which needed to be placed on banks now that the principle that they were ultimately public liabilities had been established.

It was a lesson which could have acted to restrain all players in the credit market boom of the 2000s. It was a lesson which nobody learnt.

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32 Responses to “What Really Happened to “Brown’s Bottom””

  1. ian says:

    “It was a lesson which could have acted to restrain all players in the credit market boom of the 2000s. It was a lesson which nobody learnt.”
    As usual in the MSM “Telegraph”, everything is benign, a lesson not learned. Not robbing thieving bastard banks control the UK and have robbed us again while the blackmailed pedophile MPs roll over for another humping, and bail them out with our money, whilst putting away a nice little nest egg for themselves.
    My slant on things might be a tad too subtle for them, but I feel it wouldn’t be if the old boy network, had to live like us, and instead of putting “benefit street” on TV to get the unemployed hated by the masses, they could put “Thieving banker and big business bastards, robbing country blind”. There is a hell of a lot more money going to them than the Del Boys of the world.

  2. sovereigntea says:

    Traitor Brown rescued the too big to fail criminal banks at the expense of the public & swapped our gold for Euro’s.

    Traitor Gordon also proceeded to scuttle off like a loathsome cockroach to sign the Lisbon treaty making the UK a vassal state of the corporation of THE UNITED STATES OF AMERICA via the OSS/CIA bankster non country EU looting project.

    http://billyblofeld.files.wordpress.com/2010/09/gordon-lisbon.jpg

    • sovereigntea says:

      “Act of 1871.”

      In essence, this Act formed the corporation known as THE UNITED STATES. Note the capitalization, because it is important. This corporation, owned by foreign interests, moved right in and shoved the original “organic” version of the Constitution into a dusty corner. With the “Act of 1871,” our Constitution was defaced in the sense that the title was block-capitalized and the word “for” was changed to the word “of” in the title. The original Constitution drafted by the Founding Fathers, was written in this manner:

      “The Constitution for the united states of America”.

      The altered version reads: “THE CONSTITUTION OF THE UNITED STATES OF AMERICA”. It is the corporate constitution. It is NOT the same document you might think it is. The corporate constitution operates in an economic capacity and has been used to fool the People into thinking it is the same parchment that governs the Republic. It absolutely is not.

      Capitalization — an insignificant change? Not when one is referring to the context of a legal document, it isn’t. Such minor alterations have had major impacts on each subsequent generation born in this country. What the Congress did with the passage of the Act of 1871 was create an entirely new document, a constitution for the government of the District of Columbia. The kind of government THEY created was a corporation. The new, altered Constitution serves as the constitution of the corporation, and not that of America. Think about that for a moment.

      http://www.serendipity.li/jsmill/us_corporation.htm

      • Sorry this is off topic – I find browns selling of the UKs gold at rock bottom price an outrage and clear evidence of blackmailed corruption – but this is useful, interesting for all I hope

        PAUL LAVIOLETTE, IMPECCABLE RIGOROUS NON CABAL PHYSICISTS 2 DAY AMSTERDAM EVENT. JUST THE ITINERARY ALONE IS HIGHLY REVEALING

        http://etheric.com/two-day-amsterdam-workshop-by-paul-laviolette-august-8th-9th-2015/

        ”Will discuss the mysteries of the 34,000 year old pyramid found in Visoko, Bosnia: The advanced cement technology involved in its construction; Why an electromagnetic and ultrasonic energy beam emerges from its peak.”

        ”Part III: The alchemic ether paradigm of Subquantum Kinetics: A physics superior to what universities teach.
        Why the most cherished concepts of physics and astronomy taught in the universities need to be thrown out, e.g. the following: special and general relativity, black holes, worm holes, big bang origin for the universe, first law of thermodynamics, Newton’s third law, dark matter, dark energy, quantum mechanics, the wave-particle dualism, etc.”
        ”The ancient roots of subquantum kinetics. Will show evidence that in ancient times there was an advanced physics of cosmic creation that surpasses in effectiveness standard 21st century physics.”
        ”Day 2, Sunday, August 9th (10:30 to 17:00) Advanced Space Propulsion Technologies, the Secret Space Program, the Receipt of Intelligent Signals from Alien Civilizations, and the Mysteries of How the Mind Creates Thought

        Part I: Space Colonization and Advanced Space Propulsion
        We will review some of the latest NASA spacecraft findings. Solving the mystery of Pluto’s internal heat source. How I predicted Pluto would have an internal heat source over two decades ago: The genic energy prediction.”

        Why people working in highly classified black projects know that this physics (and astronomy) is wrong and why they want universities to continue teaching it. The dark war of suppression against inventors of free energy devices and advanced propulsion technologies.

        ”The secret information leaks. Explaining how the B2 bomber actually works. How we could go to Mars in 5 days using T. T. Brown’s electrogravitic thrusters. Project Skyvault revealed: The U.S.’s microwave beam propulsion technology. The likely existence of a breakaway civilization. Bases on the dark side of the moon.”

      • sovereigntea says:

        Adam you may find this interesting — “The inter office memos and field reports of Walter Dornberger and Larry Bell. Bell Aircraft corp. NY. From 1948 to 1965. The NACA Weight Loss Reduction Program”. Classified Secret, Q clearance required, library copy only, do not distribute, for inter office use only. The Atomic Energy Agency / DOE.

        http://www.veteranstoday.com/2015/01/23/the-true-story-behind-interstellar/

      • Ithink this is why on legal court documents, as well as things from banks, and about credit cards, ro mortgages, our names are typed IN CAPITALS. I think this is significant related to what you say soverigntea
        Apparently, I read somewhere, an entire, parallel, unbenknwonst to the layman, procedure is taking place in the courtroom
        Apparently, some savvy defendents who knew their Common Law refused to be addressed by the judge in a certain way. And in fact they corrected the judge and referred to themselves as ‘a man’. And stated they wanted redress to their property [im paraphrasing ].
        Apparently the judge could do nothing. Apparently, this Admiralty law and the 4 Temples and all the legalese, is intentionally to bamboozle the layman so they can rob us. Economists do the same, all the jargon and rubbish parotted on the evening news.
        All hiding the fact there shouldn’t be central privately owned Rothschild banks, issuing fiat money out of thin air then lending that to countries that enslave the taxpayers by paying back with interest, which they never can manage
        Therefore austerity
        debt by enslavement. What did Jesus say beware of the moneychangers?

        I hope the truths about the lies and bullshit of Admiralty Law in our courts will get exposed more and more, and Common Law weapons taught how to fight back. With so much to think about its hard to focus on this too. But if it can be simple and applicable enough it will catch on

      • sovereigntea says:

        You are correct your parents INFORMED on you and begged to REGISTER YOU the NAME on your birth certificate. Upon their singiature in wet ink a NAME was created. That NAME is corporate and under Admiralty Juristiction ( or Universal Commercial Code) Any time you see your name in block capitals then the tricksters of statute dupe you the living man or woman into thinking you are the name with a TITLE ie Mr Mrs etc. Property has a title … whose property are YOU ?

        A fixed PENALTY NOTICE refers to YOU the NAME in Capitals ie MR R.IPPED OFF. As AGENT acting as manager for the NAME YOU can choose to represent it or not .. If you are the living common man of flesh and blood then you cannot hear a mort mein ( dead hand ) of a corporation or its embodiment and it works the other way too. I once had a magistrate tell me “I cant hear you” years later I realised that “I was all at sea” The sea part referring to Admiralty Law wheras a freeman stood on dry land might be assumed to be under Common Law.

        A PCSO is a corporate EMPLOYEE a mort mein do you have to hear them ?

        In short Common Law = justice and common sense Admiralty Law = tricks and injustice unless you know the game.

        In Admiralty Law the language spoken is legalise which is a foreign language not Common English the meaning of words are twisted and changed usually not in your best interests. Another mind game is “ignorance is no excuse in the eyes of the law” and thats where they catch you which law ? Common Law or Admiralty … if you dont know the rules of the game you lose.

        A CORPORATION ( which is a LEGAL PERSON ) allows its real man / woman controllers to escape personal responsibility for its actions. ARMS DEALER LTD never gets prosecuted for murder does it , is that because murder is a Common Law offence ?
        https://www.youtube.com/watch?feature=player_detailpage&v=fdtPyuQc3FM

      • sovereigntea says:

        Are these the keys to the prison ?

        the Strawman Illusion 👽 Conspiracy Theory Law Sovereign Argument Explained ✦ the Matrix Exposed

        https://www.youtube.com/watch?feature=player_detailpage&v=BUefGd9wgpk

      • sovereigntea says:

        Question ? If you were to register your name as as limited liability company ie MR R.IPPED OFF LTD would you the owner the living man of flesh and blood be responsible for the actions of someone else ie a corporation of the same NAME as you might think you are ?

        Perhaps that explains why many Labour politicians registered their names as LTD companies Alistair Darling LTD or Tony Blair LTD.

  3. pauline says:

    Broon is just another dirty kiddy fiddler,connected in a big way to thomas hamilton paedophile mass child murderer along with bliar

    • ian says:

      Aye and they’re somehow involved in the McCann case too. Not sure how, but way way too helpful before Maddy had been gone a day.

      • Lanark says:

        “too helpful before Maddy had been gone a day”
        What day would that be then? Are you talking about the day the balloon went up or the day she… errr… ?

      • sir charles drake says:

        logic would direct one in the direction of masonic high level child slaughter group.
        every area and job covered with a wink and dodgy hand shake.
        mi5 has the files to keep one in order order and on script.

        murdoch is used for life pain blackmail and reputation deconstruction.
        sas for clean mossad for dirty wet works

  4. ian says:

    Lanark, I mean that within a day of the balloon going up as you say, Tony Bliar sent his personal press secretary over to handle the media and apparently they were friends with Broon.

  5. ian says:

    To Sovereigntea and Adam, are you both just there to draw attention away from certain subjects. As far as I can see, this has nothing to do with the US constitution or Pluto, although there is a lot of Mickey Mouse stuff getting talked.

    • sir charles drake says:

      here here pluto is important
      he disney
      he dog
      he talk funny
      jupiter was used in 2001 cos saturn to close to talmud home.
      spilling of blood of the kinder suprised
      and ritual shocked.
      gordy clearly suffers the tortures of the damned deep within blair to far gone.
      both have blood on hands and feet

    • sovereigntea says:

      The point is that the US empire is not what it seems a sovereign nation state the controllers of the US corporation are the same syndicate as the controllers of the EU if you like they are the parent company. Brown is likely to have been following instructions rather than acting on his own cognisance. Follow the money.

      • ian says:

        Thanks S. I appreciate what you say. I feel that it’s the bankers who cannot be named or blamed as Jack the Ripper said, are behind all this. I apologise for my previous tone, though I am given to such outbursts. I usually live to regret them.

      • sovereigntea says:

        Bronfman, Adelson, Koch, Bush, Rockerfeller, Rothschild, Warburg, Astor, Oppenheimer and everyone at Goldman Sachs, The IMF, The ECB, The World Bank is a start. Who or what pulls their strings.

      • sovereigntea says:

        DOH forgot the BIS the World Economic Federation and the CFR & RUSI and the piss ant minions of Common Purpose, nearly every zionist and traffic wardens.

  6. ian says:

    To reiterate my point about the main article.
    We were robbed and MSM called it a lesson not learned.
    As usual in the MSM “Telegraph”, everything is benign, a lesson not learned. Not robbing thieving bastard banks control the UK and have robbed us again while the blackmailed pedophile MPs roll over for another humping, and bail them out with our money, whilst putting away a nice little nest egg for themselves.
    My slant on things might be a tad too subtle for them, but I feel it wouldn’t be if the old boy network, had to live like us, and instead of putting “benefit street” on TV to get the unemployed hated by the masses, they could put “Thieving banker and big business bastards, robbing country blind” on Tv on a Wednesday after Corrie. There is a hell of a lot more money going to them than the Del Boys of the world.

  7. sir charles drake says:

    you chaps are crazy masons of the scotch right rites do not use hands no sir.
    glorious gordy above is working the us street A ok sign coolio init.
    666 is not the hand gesture get real already.
    saturn and the spilling of child blood is not the talmud issue here.
    gordy needed the money for cash euro purchase edwyne and jacob rothschild needed the gold.
    quid pro quo eveybody nose euros are here forever and gold a barbarous relic.
    only arabs and terror types love gold freedumb lovers understand paper is the future until the id implant payment system comes in for your security of course.
    thomas hamilton like jimmy savile did a lot for kids and charity before his programme breakdown.
    scottish rite to sell team uks gold just think of the money we saved in storage fees
    my life already

  8. Jennifer says:

    And of course, Bilderberger Ed Balls was a senior Treasury advisor and very close to Brown. His missus Yvette Cooper is standing for Labour Party leadership – what does she know? And can she keep schtum and profit from it? Yeah, I’d say so.

  9. ian says:

    I apologise. I am rather impulsive, and I’m not the best fettle just now. I’m a ratty git at the best of times.

    • Jennifer says:

      Ian, for what it’s worth, I’ve read many of your various comments, they strike me as genuine, authentic, valid feelings and thoughts. Sometimes you may feel they’re hasty, but mostly they’re well considered and on the button. And that’s the point of the Tap isn’t it?
      I think most people here have had their finger on that button to submit a comment at exactly the point when their brain says ‘wait’. Too late. But a heartfelt feeling is better than being a comatose ‘Braindead Moron’ as someone around here likes to say.

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