Jump to content
House Price Crash Forum
Sign in to follow this  
Fortune

Gbp About To Sink?

Recommended Posts

Fortune,

Those of us that have sterling have already been fleeced by the UK Govt to the tune of 30% in the last 18months.

Another 30% will be water off a duck's back........... :rolleyes:

Share this post


Link to post
Share on other sites
Another day, another chart... YAWN

Yeah yeah I know but I have a strange feeling about GBP. Something is just around the corner and GBP is standing in the middle of the road. What happens next? I guess we will all find out.

Share this post


Link to post
Share on other sites
Tend to agree. The natural rate is more like 1.50 ish.

There is support in the 1.55 to 1.45 region (going back to the deleveraging wipeout last autumn). However if that breaks, the only support left is the trendline at 1.35 - which has held ever since the 1987 clearout. After that and, well, best not mention it...

Share this post


Link to post
Share on other sites
There is support in the 1.55 to 1.45 region (going back to the deleveraging wipeout last autumn). However if that breaks, the only support left is the trendline at 1.35 - which has held ever since the 1987 clearout. After that and, well, best not mention it...

But isn't this somehow telling:

http://www.housepricecrash.co.uk/forum/ind...p;mode=threaded

??

Edited by AvidFan

Share this post


Link to post
Share on other sites

If this really is the end of the US, it's more likely we'll see a $3 pound rather than a $1 pound. It wouldn't be permanent though...

Share this post


Link to post
Share on other sites
The UK is far more structurally challenged than the US imo.

But you have to admit - the long term exchange rate graph says "no".

Since sterling is now 5% of European central bank reserves representing 475 million people, I reckon we won't get to those lows again. I reckon we'll see a decade on decade climb of GBP versus the dollar because we're taking harder decisions than the Americans and have been for 40 years since they let go of the exchange controls and our collapsing empire.

I reckon the demise of the UK relative to the US has been over for 10 years.

That's not to say the West isn't going to hell in a handbasket - it's just that some of us are only going as far as the second or third circle...

Share this post


Link to post
Share on other sites
If this really is the end of the US, it's more likely we'll see a $3 pound rather than a $1 pound. It wouldn't be permanent though...

Fair point, but I was thinking along the lines that the currency boyz will short both USD and GBP - the pound more so - since the whole world knows that Brown's Britain is the retarted younger brother of the US (no offence intended). And so the rest of the world's currencies will seem to 'appreciate' against the US and the UK. In the recent era of free-floating currencies all is relative, I suppose.

Share this post


Link to post
Share on other sites

I've not seen anyone show a 40-year analysis of GBP versus USD - on cnbc or Bloomberg for example.

Most commentators are busy saying the pound and the UK are finished.

We're in for a *very* rough ride - things will look really bad for a decade and the mentality of most will be to short the pound.

Unfortunately, they are in for a nasty surprise.

Share this post


Link to post
Share on other sites

Energy consumption is where the US is really going to come unstuck -they can`t presist with using cars to go to the corner store and Air-Conditioning huge shopping malls 24/7 - not at the current level of retail Oil pricing anyway ...

Share this post


Link to post
Share on other sites
Energy consumption is where the US is really going to come unstuck -they can`t presist with using cars to go to the corner store and Air-Conditioning huge shopping malls 24/7 - not at the current level of retail Oil pricing anyway ...

Totally agree. Peak oil or the next oil supply crunch, depending on how you see it, will be like the UK's 1974-1980 in the US.

We'll just get a little growth contraction and stagnation - but given we can turn 1 barrel of oil into nearly $3000 on our GDP and we're 100% hedged against oil price rises due to the North Sea, we're largely home free...

Share this post


Link to post
Share on other sites
Agree?

I don't see why browns bottom = RIP uk, personally i want the pound to sink (or rather other currencies to appreciate).

In terms of the pound being overvalued against the dollar, i'm not sure, against a basket of world currencies i believe so.

Edited by slurms mackenzie

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   291 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.