Brown Bottom

As the price of gold today hits a historic 27 year high, Guido wishes he had bought more for his daughters. We all make mistakes as traders don’t we? Gordon Brown’s great mistake is of a different order altogether and is remembered by the gold market players with much fondness and clinking of champagne glasses.

In an act of macro-economic stupidity bordering on treason, he told the market – in advance – that it was his intention to sell off Britain’s gold reserves. When selling a lot of something, and this was 200 years of accumulated gold, it is not thought wise to loudly forewarn buyers in an open market. The market immediately sold off and went short the yellow metal. The dip in prices during what followed is known in the market as the Brown Bottom and was a twenty year low.

Today, the old fashioned solid-state store of value is now 230% higher than when Gordon unloaded the Treasury’s reserves. The fiat dollars he bought with some of the proceeds have halved. The government’s debt (including pension liabilities) has now broken the trillion pound barrier.

Gilt edged government debt is no longer backed by gold under the Bank of England, but by ever rising taxes. Gordon’s reputation in the City is a joke.




Tip offs: 0709 284 0531
team@Order-order.com

Quote of the Day

Nick Timothy on George Osborne’s latest:

“Evening Standard editorials will soon be shortlisted for the Booker Prize.”

Sponsors

Guidogram: Sign up

Subscribe to the most succinct 7 days a week daily email read by thousands of Westminster insiders.
All Smiles After Cabinet All Smiles After Cabinet
Who’s The Eye’s Telegraph Mole? Who’s The Eye’s Telegraph Mole?
UK Green Lobby Funded by Anti-Immigrant Multi-Millionaire UK Green Lobby Funded by Anti-Immigrant Multi-Millionaire
Tory Glasto Hosted by Multi-Millionaire Gambling Magnate Tory Glasto Hosted by Multi-Millionaire Gambling Magnate
Hammond and Treasury “On Manoeuvres” Against Brexit Hammond and Treasury “On Manoeuvres” Against Brexit
Osborne Lands Job Number Seven Osborne Lands Job Number Seven
Civil Service ‘Not Really Preparing’ For No Deal Civil Service ‘Not Really Preparing’ For No Deal
Osborne’s Latest Duff Analysis Osborne’s Latest Duff Analysis
Corbynista Journo Banned from Conference Corbynista Journo Banned from Conference
Sheerman’s Shameless Shilling Sheerman’s Shameless Shilling
Carwyn Jones Picks a Winner Carwyn Jones Picks a Winner
Red Robbins: May’s Brexit Supremo is Soviet Sympathiser Red Robbins: May’s Brexit Supremo is Soviet Sympathiser
Owen Goes Full Brent Owen Goes Full Brent
What Caused Rachel Sylvester’s Volte Face? What Caused Rachel Sylvester’s Volte Face?
Labour Moderates Screwed Labour Moderates Screwed
WATCH Boris: “I’m Not Resigning” WATCH Boris: “I’m Not Resigning”
Corbynistas Seek Right to Suspend NEC Elections With “Venezuela Amendment” Corbynistas Seek Right to Suspend NEC Elections With “Venezuela Amendment”
Osborne Repents Osborne Repents
Meanwhile on Labour’s Facebook Forum Meanwhile on Labour’s Facebook Forum
Heywood Breaching Cabinet Manual by Bypassing Ministers Heywood Breaching Cabinet Manual by Bypassing Ministers