PRIZE OF ECONOMIC FAILURE

Gordon Brown's appointment as a senior wealth creation
adviser to Pimco, the global asset management company, is 
triumph of apparent nepotism - Ed Balls's brother is the company's chief 
investment officer - over breathtaking incompetence. Between
1999 and 2002 Mr Brown sold off over half the UK's gold reserves
at a fraction of their subsequent value. The move was indicative of a 
mindset that appears to run counter to Pimco's view that gold is important
part of an economic portfolio.

The sell-off happened in order to protect the solvency of major US banks,
which had become dangerously over-exposed in the gold derivatives
market. The cost to the UK taxpayer amounted to billions. It occurred
at the behest of Gordon Brown without any consultation reganrding what,
turned out to be the squandering of taxpayers' money. The decision was
announced well in advance, thus achieving the US banks' objective: the 
lowest possible gold price.

This disastrous decision adds to Gordon Brown's lasting legacy of profligacy
and near national bankruptcy. Under his chancellorship there was rampant
public spending during a period of brisk growth, unsustainable consumer
debt and frequent extensions of the business cycle in an attempt to balance
the books. He continued with his reckless borrow and spend policy, while
making the absurd assertion that he had abolished boom and bust. I am at a
loss to know what qualifies him for the role at Pimco.














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