. . . he got such a bad rap for selling over half of the UK's gold at the price bottom.
But he is an investment genius compared to the government of Canada.
From 1997 to 2003 (in the low), they sold off over 96% of Canada's gold reserves, once again into a generational bottom. Although, according to this article, the last of these sales was into a "sizzling market".
And prior to that, from 1984 to 1993, when Mulroney (Conservative) was in power, Canada sold 70% of its gold into a falling market. Because selling into a falling market is how you make money.
The Chretien government (Liberal) sold off half of what was left by 1997, meaning Canada sold 85% of its gold prior to 1997. Then in next six years they sold 96% of what was left.
The glorious chart follows.
We have little to compensate for the sale of 99.5% of our gold. Except this. The prevailing global opinion of the strength of the Canadian economy is favourable.
As before, we next compare Canadian government debt to the value of its gold holdings.
The confidence of the ruined! The results are so spectacular that they need to be viewed on a logarithmic axis.
On paper, the picture isn't really this devastating--much of our gold was converted into foreign currencies including the US dollar, pound sterling, euros, Swiss francs, Japanese yen, Berzerkistan trffls, and other similarly combustible currencies; all of which are convertible into gold. For the moment.
In retrospect I had some rude things to say about this index for the US and Japan. Sorry about that.
But he is an investment genius compared to the government of Canada.
From 1997 to 2003 (in the low), they sold off over 96% of Canada's gold reserves, once again into a generational bottom. Although, according to this article, the last of these sales was into a "sizzling market".
And prior to that, from 1984 to 1993, when Mulroney (Conservative) was in power, Canada sold 70% of its gold into a falling market. Because selling into a falling market is how you make money.
The Chretien government (Liberal) sold off half of what was left by 1997, meaning Canada sold 85% of its gold prior to 1997. Then in next six years they sold 96% of what was left.
The glorious chart follows.
We have little to compensate for the sale of 99.5% of our gold. Except this. The prevailing global opinion of the strength of the Canadian economy is favourable.
As before, we next compare Canadian government debt to the value of its gold holdings.
The confidence of the ruined! The results are so spectacular that they need to be viewed on a logarithmic axis.
On paper, the picture isn't really this devastating--much of our gold was converted into foreign currencies including the US dollar, pound sterling, euros, Swiss francs, Japanese yen, Berzerkistan trffls, and other similarly combustible currencies; all of which are convertible into gold. For the moment.
In retrospect I had some rude things to say about this index for the US and Japan. Sorry about that.
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