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TheCountOfNowhere

Sterling Crisis

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Seeing a few people post now that they think we will have a sterling crisis.

Do people think this is going to happen ?

If so, what is the best approach to protect yourself ?

£10 for the first man to say "Buy a house." :lol:

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Buy a house put it in someone elses name or a trust and get as much credit as you can and hide it in another currency/gold/silver etc... and then go bankrupt.

Edited by Corruption

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We appear to be approaching a situation where all the major currencies will be (are) in crisis, but then doesn't that mean it will just all cancel itself out and we just carry on?

If a new world currency appears then there will be a currency crisis.

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They'd panic and raise rates. Not good for house prices. Buy the Dollar IMO.

We run a massive trade deficit. But balance it by selling houses and businesses to foreigners.

Sterling crisis if 1) the foreigners can no longer afford to buy british houses and businesses due to domestic problems.

2) all the businesses and houses are already owned by foreigners...we are tenants in our own land.

I wonder how much of Germany vs England is foreign owned...what with the germans rarely running trade surpluses.

In 50 years IMO Germany will still be Germany. Any English with skills will have long departed England. The Chinese landlords having filled it with Pakistani software engineers. Or something like that.

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Buy a basket of real assets. Shares in companies that are productive and/or asset-rich, which therefore have intrinsic value. Individual assets like houses are an indulgence, unless your pot is large enough NOT to be dominated by the cost of the house.

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i don't see it at the moment, currency crises generally happen to outliers and many major currencies are in the same basic position, high indebtedness and low growth. In terms of who might become an outlier, my guess is that there are other major currencies more exposed.....

the Aussies because their economy is basically just an option on continued Chinese growth and suffers from even more ridiculous house prices than ours in relative terms (and the same issues with inward investment that would reverse quickly in a crisis)

Japanese because they've been the first to try the full on monetary and fiscal Keynesian / Krugmanite treatment, and it appears to be failing

and the Euro for obvious political reasons (although very hard to call as if a political crisis triggered a sharp decline in the Euro, it would help the peripheral states and ease the political pressure a bit. My guess is that it would need something seismic like an anti Euro party winning an outright majority in one of the major states).

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In 50 years IMO Germany will still be Germany. Any English with skills will have long departed England. The Chinese landlords having filled it with Pakistani software engineers. Or something like that.

I don't think I'm going to like living here then, but as I'll be almost 120 years old I'm not going to worry about it too much.

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I have our pensions invested in dollar denominated securities.

Bond vigilantes : sterling being kept up by property transactions. "Deficit this big has historically led to a run on the £."

http://www.bondvigilantes.com/blog/2014/07/01/stamping-foreign-flows-uk-property-sterling-suicide/

Slide4.png

Have been looking for something USD denominated into which I can move a large chunk of my savings into which won't lose too much value if US rates do move next year. Short of somehow getting hold of actual US $, the only product I've managed to find available for UK retail investors is the iShares ETF which holds short-dated (1-3 year) Treasury bonds.

Be v interested to know if anyone's got any better ideas....!

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I have our pensions invested in dollar denominated securities.

Bond vigilantes : sterling being kept up by property transactions. "Deficit this big has historically led to a run on the £."

http://www.bondvigilantes.com/blog/2014/07/01/stamping-foreign-flows-uk-property-sterling-suicide/

Slide4.png

beautiful...one for the favourite charts.

It would be nice to have all this blow up before the election and ensure the public know just how treasonous the tories and their economic policies are.

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