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Much attention is focused on the current catalogue of defective policy decisions by Australia’s Federal Government. July 4 marks the 21st anniversary of the Reserve Bank of Australia (RBA) announcing that they had sold off 167 tonnes of gold — two-thirds of Australia’s gold reserves.

Just updating the loss inflicted by this decision and the ultimate speculation in Thai Baht at the time of the Asian currency crisis, gives us a cost to the nation of $5.275 billion (difference between gold price then and now) plus $4.8 billion on ‘cross currency swaps’; the loss totalling $10.075 billion.

This is another example of a bad policy executed to perfection. So the challenge remains for our financial commentators and analysts to remain ever vigilant for further costly blunders and expose them.

We are happy to receive further examples from you, to add to our ever expanding collection.

 

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