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Pound Touching New Lows Against The Euro

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For all Greece's woes, the pound is at a 12-month low against the euro. Is this a reflection of market sentiment to the UK in general or have I missed something simple?

Yes , the euro is at a new high!

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Greece defaulting is (or would be) good news for the euro. It shows that the ECB won't print euros to buy government bonds every time a eurozone government can't be bothered to manage its budget by cutting spending or raising taxes.

"OMG Greece is defaulting = the euro is toast!!!!1!1111" is just lazy thinking.

Edited by Dorkins

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Perhaps it is because China's got the Euro's back. Translated it means China wants Europes gold reserves as Europe has 10,792.6 tons of the stuff and it was last seen around 1999 when the Euro was introduced.

The US claims to have 9800 tons of gold but nobody has seen it since WWII.

When, thats WHEN not IF Europe defaults, they come for the yellow stuff. Hell a whole load of it might well have been transfered to Hong Kong already as collateral. There was a massive movement of it in 2005 or thereabouts when a massive gold depository was built in HK airport.

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If greece leaves the euro, it becomes a super Deutchmark no?

It gets stronger, drachma weaker.

I guess the market is betting on greece leaving euro?

Politicians wont allow it. The GLOBALIST euro project cant fail. Even if it kills us.

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Perhaps it is because China's got the Euro's back. Translated it means China wants Europes gold reserves as Europe has 10,792.6 tons of the stuff and it was last seen around 1999 when the Euro was introduced.

The US claims to have 9800 tons of gold but nobody has seen it since WWII.

When, thats WHEN not IF Europe defaults, they come for the yellow stuff. Hell a whole load of it might well have been transfered to Hong Kong already as collateral. There was a massive movement of it in 2005 or thereabouts when a massive gold depository was built in HK airport.

Ken,

do state's pledge gold as collateral for their borrowing?

I thought that China had pledged to by European debt. I thought they were doing so to keep the Euro high and the state's solvent so they could keep exporting to them. It is of course economic madness to do that, it effectively means you are giving stuff to free for Europe. But if that is what they want to do, I guess that is up to them.

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Ken,

do state's pledge gold as collateral for their borrowing?

I thought that China had pledged to by European debt. I thought they were doing so to keep the Euro high and the state's solvent so they could keep exporting to them. It is of course economic madness to do that, it effectively means you are giving stuff to free for Europe. But if that is what they want to do, I guess that is up to them.

The CCP will do many insane things to stay in power at all costs. When they say a harmonious society they mean to keep themselves in power and thus to prevent rocking of the boat.

China HAS to keep up at least 6-7% growth to keep people in jobs. There are already millions of unemployed in China.

If you start having 50 million unemployed it causes severe unrest. Social welfare is low having 50 million hungry people with nothing to lose is incredibly dangerous. 50 million by all accounts is a massive fifth column type army inside your own borders. And those 50 million may well have sympathisers as well meaning civil war and insurrection. China has a history of insurrection. Just look at the Taiping rebellion 150 years ago. A massive insurrection occured and 20-30 million people died from it.

A few years later they had the divine fists boxer rebellion. Then a civil war, then another civil war then WWII then another civil war.

So they lose a big chunk of money to Europe perhaps, but they get to keep their heads.

Much like people think it is OK to bail out the banks to prevent survivalist nutters like myself hunting you and your family in post apocalypse Britain.

Edited by ken_ichikawa

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Much like people think it is OK to bail out the banks to prevent survivalist nutters like myself hunting you and your family in post apocalypse Britain.

Sounds fair, fish gotta swim, man gotta eat :lol:

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Perhaps it is because China's got the Euro's back. Translated it means China wants Europes gold reserves as Europe has 10,792.6 tons of the stuff and it was last seen around 1999 when the Euro was introduced.

The US claims to have 9800 tons of gold but nobody has seen it since WWII.

When, thats WHEN not IF Europe defaults, they come for the yellow stuff. Hell a whole load of it might well have been transfered to Hong Kong already as collateral. There was a massive movement of it in 2005 or thereabouts when a massive gold depository was built in HK airport.

There's no gold in Fort Knox there hasn't been for years, Strauss-Kahn knew this and the CIA knew he knew so in time honoured tradition they stitched him up to shut him up.

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It's because the ECB have put rates up and look likely to do so again in the near term whereas there's no sign of the BofE doing so for a long time - in fact there starting to wind up the QE retoric.

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It's because the ECB have put rates up and look likely to do so again in the near term whereas there's no sign of the BofE doing so for a long time - in fact there starting to wind up the QE retoric.

When the pound goes down against the Belarussian rouble, you know it's in trouble.

Belarus has got to have the world's weakest currency at the moment after a 36% devaluation.

I was thinking of sliding over there for a really cheap holiday. But last week the pound was worth 8,200 roubles and today I notice it has dropped to 7,900.

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Well it's not helping me as I need to pay for raw materials/components in $s before I can build anything to export...

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imo BoE are doing all they can to surpress the £ against other currencies as it will help the UK economy export. Afterall what better way to rebalance the economy than force it into export mode by devaluing the currency?

Industry can save money by not importing more expensive machine tools, that will mean no new machine tools.

Epic fail.

Trying to hide the cost base disparity by destroying the currency - total ***** policy - failedd for deacdes and every reason why it is failing now.

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imo BoE are doing all they can to surpress the £ against other currencies as it will help the UK economy export. Afterall what better way to rebalance the economy than force it into export mode by devaluing the currency?

Doesn't work as the cost of importing raw materials go up. Germany managed to export with a hard currency.

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But are some of the new machine tools so good the old ones are worth being repaired?

Considering the no1 export of this country is services, I have no problem with it becuase it suits the largest number of people who happen to be bring money into this country.

Without the latest mahines tools (all automated) there is zero chance of competing - one man tanding at a colchester lathe - no hope whatsoever.

As for services - it is the cost base that will put paid to those as well - unles peope want to be paying £5-£10 a litre for fuel with the devaluation that would be necessary. Services i the next sector to suffer very badly from the bubble that still existis in housing and costs.

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imo BoE are doing all they can to surpress the £ against other currencies as it will help the UK economy export. Afterall what better way to rebalance the economy than force it into export mode by devaluing the currency?

Does that big hook in your mouth hurt much?

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Doesnt compute, can you explain? :)

Well the UK trade deficit keeps getting higher despite the Bank of Theft from Savers in England trashing sterling for years.

Therefore it seems more likely they are just helping the indebted and stealing from savers, under the guise of helping exporters, whose raw material costs have got higher anyway.

Therefore you are dangling on the end of Mervyn King's fishing rod, with a rather large hook in your mouth.

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Well the UK trade deficit keeps getting higher despite the Bank of Theft from Savers in England trashing sterling for years.

Therefore it seems more likely they are just helping the indebted and stealing from savers, under the guise of helping exporters, whose raw material costs have got higher anyway.

Therefore you are dangling on the end of Mervyn King's fishing rod, with a rather large hook in your mouth.

I think you've got it spot on. The job of the Bank(rupt) of England is to keep their mates in the square mile in bonuses, and to do that you need to keep the indebtedness constantly rising, while looting enough to cover for when the inevitable bust comes. The knighthood and £1M + inflation proofed pension pot is a pay off.

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I dont see it like that, what I see is people complaining about things they buy generally from overseas getting more expensive yet they dont always want to seek alternatives to reduce the increased costs or up their income.

An example being more people could grow their own food for example, they save money by not going to a gym, get to eat some fantastically tasty and fresh produce with a better knowledge of what crap has gone into it than some things purchased from a supermarket and what do some seeds, some mud and patience cost? We have become a throw away disposable society and no one wants to invest in themselves but would rather take the easier option. This is best exemplified by the rise of the ready meal.

Likewise there is nothing stopping anyone from exchanging their savings into a different currency and putting it into a local bank account paying a higher rate of interest than a UK bank can offer. Of course you potentially expose yourself to local taxation depending on your amounts saved, but at the same time theres also nothing stopping anyway from seeking some other form of investment to protect their savings. Why does the money have to stay in a UK bank? Becuase of peoples fears.....

Can you give me instructions on how to grow some petrol, electric and gas in my garden?

So we live in a country so f****d up we are supposed to gamble our money in the currency of another country? What do you suggest I buy Zimbabwean dollars?

If trashing sterling four years ago is to help an export led recovery - why is the trade gap not decreasing significantly?

Edited by Redhat Sly

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Electricity in a few years time yes, gas and petrol no.

If you view saving money in a bank as a gamble why do you even have money in the UK banking system? Dagong cited last month in the UK AA+ downgrade UK banking solvency issues. So why save money in the UK? Are you gambling on there not being another Northern Rock?

On the point about the trade gap, unfortunately we have a society populated in the main by people who are easily led and exploited, one such example being the housing bubble, plus humans are lazy, its easier and quicker to have a moan and a vent instead of getting off ones backside and doing something about it properly.

People want things done for them by the state, yet when it comes to say setting up a business which employees people to do things for them they dont want to do, and yet offshoring has never been easier.

People are so illogical and emotional sometimes its funny. :D

And most people seem content with their 9-5 existence in a slave box.

Reasonably fascinating but Fckall to do with your original ascertation that currency devaluation is helping or going to help the trade gap

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Depends on what term you are looking at. Short term as we already see no, but medium to long term it will becuase it takes time to alter attitudes in society.

How long do you want 100 years, and changing society was completely missed out from your original analysis.

The reason currency devaluation alone wont change it is because its structural due to a mickey mouse service, selling bshit and govt spending economy, the only thing that will change it is real manufacturing/production be it technology based or not, a structural economic change away from services and selling bshit of the last 25 years, sterling could drop 90% without that change and thered still be a deficit

2iih7c6.jpg

Not suprisingly it went structural and fell off a cliff straight after Gatt and Maggie introduced her bshit service/finance economy nonsense (service economy is another name for unsustainable/default in some point in the future), it then dropped as the uk went into recession (less spending). It only managed to a risible flatline during one of the biggest innovation bubbles in the 90s of which the UK played a large part, and then the completely inept loony fckwit Brown carried on with the services nonsense without the luck of the tech boom like the tories. Youll also note it dropped in 08 (again recession) and it has spiked down again in 11(probably a forewarning of another upcoming recession). All structural, not currency induced

Edited by georgia o'keeffe

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  • 284 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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