lufc Posted February 6, 2010 Share Posted February 6, 2010 http://uk.reuters.com/article/idUKLDE6141WC20100205?pageNumber=2&virtualBrandChannel=0 Sterling hits 8-1/2 mth low vs in-favour dollar If anything I would have thought that the Boe would prefer a weak pound vs the Euro (our biggest export market) and strong vs the dollar (less inflationary for commodities imported and denominated in dollars). Interesting that the "pause" in QE did little for Sterling's cause, or maybe the markets believe that the " pause" will be very short lived. Or maybe the markets are putting UKPLC on a similar financial footing to Greece, Spain Etc, Etc. Quote Link to comment Share on other sites More sharing options...
Georgia O'Keeffe Posted February 6, 2010 Share Posted February 6, 2010 (edited) http://uk.reuters.com/article/idUKLDE6141WC20100205?pageNumber=2&virtualBrandChannel=0 Sterling hits 8-1/2 mth low vs in-favour dollar If anything I would have thought that the Boe would prefer a weak pound vs the Euro (our biggest export market) and strong vs the dollar (less inflationary for commodities imported and denominated in dollars). Interesting that the "pause" in QE did little for Sterling's cause, or maybe the markets believe that the " pause" will be very short lived. Or maybe the markets are putting UKPLC on a similar financial footing to Greece, Spain Etc, Etc. the doolar whether correct or not is still the reserve currency, therefore as seen in 2008, whenever there is a whiff of deflation in the air it will be bought by the risk averse no matter how fcked the country is, i cant see that changing no matter how much debt they have whilst they remain the reserve currency Edited February 6, 2010 by Tamara De Lempicka Quote Link to comment Share on other sites More sharing options...
lufc Posted February 6, 2010 Author Share Posted February 6, 2010 the doolar whether correct or not is still the reserve currency, therefore as seen in 2008, whenever there is a whiff of deflation in the air it will be bought by the risk averse no matter how fcked the country is, i cant see that changing no matter how much debt they have whilst they remain the reserve currency I quite agree. My point is though that I don't think a strengthening dollar and weakening Euro is in the Boe/Brown masterplan. Quote Link to comment Share on other sites More sharing options...
Georgia O'Keeffe Posted February 6, 2010 Share Posted February 6, 2010 I quite agree. My point is though that I don't think a strengthening dollar and weakening Euro is in the Boe/Brown masterplan. i wasnt aware they had any plan other than to keep the plates spinning as long as possible, which to be fair is an optimum strategy for them Quote Link to comment Share on other sites More sharing options...
CokeSnortingTory Posted February 6, 2010 Share Posted February 6, 2010 i wasnt aware they had any plan other than to keep the plates spinning as long as possible, which to be fair is an optimum strategy for them I think the plan is to be the last one to drop the plates. The last one to drop the plates is the winner. Quote Link to comment Share on other sites More sharing options...
crashologist Posted February 6, 2010 Share Posted February 6, 2010 I think the plan is to be the last one to drop the plates. The last one to drop the plates is the winner. Like a Greek wedding? Quote Link to comment Share on other sites More sharing options...
Executive Sadman Posted February 6, 2010 Share Posted February 6, 2010 the doolar whether correct or not is still the reserve currency, therefore as seen in 2008, whenever there is a whiff of deflation in the air it will be bought by the risk averse no matter how fcked the country is, i cant see that changing no matter how much debt they have whilst they remain the reserve currency Yes, someone posted an interview with Schiff i believe it was saying that if the dollar collapses it will take every other currency down with it due to its reserve status. Ie dont bother diversifiying into euros/pounds/any other currency if hyperinflation is what you fear. Quote Link to comment Share on other sites More sharing options...
Flatdog Posted February 6, 2010 Share Posted February 6, 2010 Yes, someone posted an interview with Schiff i believe it was saying that if the dollar collapses it will take every other currency down with it due to its reserve status. Ie dont bother diversifiying into euros/pounds/any other currency if hyperinflation is what you fear. Too right. There was a time (not all that long ago) when the £ was, across the world, considered prime, 'sound as a pound' and all that. The US$ has become the currency of choice now, hell's teeth, one can even use it to buy groceries in Zimbabwe. Quote Link to comment Share on other sites More sharing options...
scepticus Posted February 6, 2010 Share Posted February 6, 2010 Interesting that the "pause" in QE did little for Sterling's cause, or maybe the markets believe that the " pause" will be very short lived. thats because QE had very little to do with its initial decline, which was mostly over before QE began. Quote Link to comment Share on other sites More sharing options...
Number79 Posted February 6, 2010 Share Posted February 6, 2010 Yes, someone posted an interview with Schiff i believe it was saying that if the dollar collapses it will take every other currency down with it due to its reserve status. Ie dont bother diversifiying into euros/pounds/any other currency if hyperinflation is what you fear. schiff does point out that if all currencies dive then the usd will still be top of the pile but he never says not to diversify if hyperinfaltion is a concern. He is concerned about hyperinflation and recommends diversifying out of fiat and into gold and other assets. Quote Link to comment Share on other sites More sharing options...
lufc Posted February 6, 2010 Author Share Posted February 6, 2010 thats because QE had very little to do with its initial decline, which was mostly over before QE began. Tell me scepticus, exactly what was the reason for its initial decline. Quote Link to comment Share on other sites More sharing options...
okaycuckoo Posted February 6, 2010 Share Posted February 6, 2010 Why is € the ugly one, and not £? Quote Link to comment Share on other sites More sharing options...
huw Posted February 7, 2010 Share Posted February 7, 2010 Why is € the ugly one, and not £? It comes from the way the euro was put together Quote Link to comment Share on other sites More sharing options...
lufc Posted February 7, 2010 Author Share Posted February 7, 2010 Why is € the ugly one, and not £? The Euro and its PIIGS are currently considered more ugly than the £ but word has it that the £ might be showing early signs of facial herpes. http://www.telegraph.co.uk/finance/comment/liamhalligan/7174972/Wrong-time-for-Tories-to-start-wobbling-over-spending-cuts.html Quote Link to comment Share on other sites More sharing options...
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