I never intended for this blog to become political; however, after reading this week’s news, it would be hard not to mention the calamity that our chancellor, Rachel Reeves, might be about to bring about. It does not seem like five minutes ago that the world laughed at Gordon Brown’s economically illiterate move, which cost our nation dearly. The then-Chancellor notoriously flogged off the nation’s gold reserves for a song, in a move that will have economic implications for generations to come. For those unfamiliar with this tragic trade, Gordon Brown took it upon himself to sell the nation’s bullion, 395 tonnes in total, raising just $3.5 billion between 1999 & 2002. That same gold would be worth an estimated $26.6 billion today – ouch!
Yet here we are, a couple of decades later, with an equally inept chancellor, ready to sell the nation’s Bitcoin reserves (can we call them reserves?). Having played the modern-day Robinhood, since fumbling into power, she has once again run out of everybody else’s money, but rather than make the hard decisions needed, it appears the right dishonourable Rachel Reeves is ready to take a hammer to the crypto piggy bank that the nation has acquired, through mainly criminal seizures. Currently valued at around $5 billion.
History really does repeat itself, and perhaps we should all take this as a stark reminder of what Labour governments are capable of. This could be the nation’s nest egg, its future leverage; who knows, one day it could even pay off the national debt. However, it is unlikely that whoever gets into power cannot help but add to the already unbearable pile of misery that is the nation’s debt.
This has been a monumental year for cryptocurrency, with Bitcoin being a notable standout. The USA has just passed “the genius bill”, something that would have been considered impossible just a few years ago. Financial institutions worldwide are scrambling to put digital assets on their balance sheet. Treasury companies have exploded, and the world has finally accepted that blockchain is the future of finance. Here in the UK, the government’s chief financial minister deems this, of all times, the time to sell. You couldn’t make it up.
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