durhamborn Posted February 7, 2017 Share Posted February 7, 2017 http://www.telegraph.co.uk/business/2017/02/05/sterling-may-become-swiss-franc-steroids/ Forget inflation.No need to put interest rates up.QE to infinity.Its all ok.The world is going to pile into sterling as the safe place to store wealth. The ironic thing is they may not be far wrong on the direction though.The $ index looks like its in a bear market already and once the UK is outside the EU,if they crack money would flow here probably.However with inflation running way ahead of the curve would people want sterling,or more likely sterling assets? (stocks/gilts/property) Sell gold assets in March? Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted February 7, 2017 Share Posted February 7, 2017 Mighty as well buy dog s**t Quote Link to comment Share on other sites More sharing options...
billybong Posted February 7, 2017 Share Posted February 7, 2017 (edited) If housing is the UK's economy then according to the link below it's nearer Russia, the Ukraine and Moldova rather than Switzerland. http://www.globalpropertyguide.com/Europe/germany/price-gdp-per-cap Edited February 7, 2017 by billybong Quote Link to comment Share on other sites More sharing options...
spyguy Posted February 7, 2017 Share Posted February 7, 2017 Yeah look at how we retain value http://www.xe.com/currencycharts/?from=CHF&to=GBP&view=10Y Quote Link to comment Share on other sites More sharing options...
adamLancs Posted February 7, 2017 Share Posted February 7, 2017 (edited) If the debt bubble collapses it's game over for sterling. You'll sooner be wiping yer bum with the Queen's nose than seeing £ become a bastion of global wealth. Normally IRs moving up would be good for £. But because of the nature of the ponzi, everything you talk of will go south with the economy. £/stocks/gilts/property Just like in 2008. That's why it will be more QE imo., in which case only the £ goes down and everybody with assets lives happy forever, and they all go out and vote for the hand that feeds them. I'm pretty sure the Romans figured this out some centuries ago. Edited February 7, 2017 by adamLancs Quote Link to comment Share on other sites More sharing options...
spyguy Posted February 7, 2017 Share Posted February 7, 2017 Debase your economy and currency and you can no longer borrow or trade in your currency. You are forced to use another currency, with all the risk that comes with. Have a read: https://www.bloomberg.com/politics/articles/2017-02-06/-death-spiral-looms-for-zimbabwe-economy-as-cash-runs-out Quote Link to comment Share on other sites More sharing options...
Wayward Posted February 7, 2017 Share Posted February 7, 2017 is this a joke..? sterling to be the sweetest smelling turd in the park? Quote Link to comment Share on other sites More sharing options...
Lovely Rum Posted February 7, 2017 Share Posted February 7, 2017 my jaw actually dropped when i saw this Quote Link to comment Share on other sites More sharing options...
durhamborn Posted February 7, 2017 Author Share Posted February 7, 2017 39 minutes ago, Wayward said: is this a joke..? sterling to be the sweetest smelling turd in the park? I thought i had been drugged when i saw it.Then thought it was an April the 1st article that had slipped out by accident.Sterling,the great store of wealth.Its back to 1899 again.That inflation your about to see is only a passing thing.My Chinese suppliers however laughed when i asked if i could pay in sterling.They actually did laugh. Quote Link to comment Share on other sites More sharing options...
Jugador Posted February 7, 2017 Share Posted February 7, 2017 3 hours ago, spyguy said: Yeah look at how we retain value http://www.xe.com/currencycharts/?from=CHF&to=GBP&view=10Y Yep, and I met some people in Cyprus who had funded their holiday homes using Swiss Franc mortgages. 50% crash in the value of their places plus painful mortgage increases. Painful. Quote Link to comment Share on other sites More sharing options...
white110 Posted February 7, 2017 Share Posted February 7, 2017 When I read that Telegraph article my first thought was that "Steroids make you impotent not important". Quote Link to comment Share on other sites More sharing options...
iamnumerate Posted February 7, 2017 Share Posted February 7, 2017 What was the rate before we joined the EU? Quote Link to comment Share on other sites More sharing options...
spyguy Posted February 7, 2017 Share Posted February 7, 2017 1 hour ago, durhamborn said: I thought i had been drugged when i saw it.Then thought it was an April the 1st article that had slipped out by accident.Sterling,the great store of wealth.Its back to 1899 again.That inflation your about to see is only a passing thing.My Chinese suppliers however laughed when i asked if i could pay in sterling.They actually did laugh. What do they want paying in? Dollars Id guess. Do you pay into an account outside of China i.e. one where they can keep the cash outside of China gov eyes? Quote Link to comment Share on other sites More sharing options...
ebull Posted February 7, 2017 Share Posted February 7, 2017 Interesting dilemma [I hold a lot of e. right now - enough to buy several UK houses for cash - and would like pounds but think that even 90p per euro is mediocre value for money. That's before you consider the ridiculous price of real estate, just looking at cost of other stuff / life. ] HPC - comprehensively and consistency wrong on HPI since 2004 [sorry guys I DO wish that was not true but it is], not sure of the record on currency. Telegraph and especially AEP on currency - Just comprehensively and consistency wrong. Actually what the article says is that Bank of America advises to expect a dip as article 50 is trigerred and then a steady rise on fundamentals. How is BoA history of predictions on currencies? Quote Link to comment Share on other sites More sharing options...
Stateless Posted February 7, 2017 Share Posted February 7, 2017 I checked just a few weeks ago, I was expecting an IRS refund (enough to make me debt free, so an important day for me). 10 years ago is a good reference point because its before the 2008 QE / ZIRP b#llocks. The change in X-rates since 2008 would negate most of paper gains for most people. I don't think this has played out yet, we have a terrible economy not enough natural resources (N.Sea Oil gone), decades of unemployed people who probably unemployable, spending beyond our means (everything on credit), borrowing to out bid each other (brain damaged populace) to buy houses (in to massive bubble), massive debts everywhere, huge imports (trade imbalance). THE FUNDAMENTALS DON'T LOOK GOOD Either the pound or house prices slide downwards. (probably both) Over the last 10 year period we have a weaker currency than India !!! Forgot about being the new Swiss Franc that would require some sort of miracle. Quote Link to comment Share on other sites More sharing options...
kzb Posted February 7, 2017 Share Posted February 7, 2017 52 minutes ago, Stateless said: THE FUNDAMENTALS DON'T LOOK GOOD Forgot about being the new Swiss Franc that would require some sort of miracle. I'm as sceptical as you, but bear in mind things go in cycles. The pound might be at the low end of possibilities currently, and may go even lower when A50 is triggered. Yes the UK economy is a property Ponzi as things stand. But maybe some transformation will happen over the next few years. Also there is no shortage of other countries up the effluent stream without a means of propulsion (as someone said on here the other day). Quote Link to comment Share on other sites More sharing options...
cognitive dissonance Posted February 7, 2017 Share Posted February 7, 2017 The only way this will happen is if they raise interest rates and keep raising them....... and guess what, right on queue BOE Forbes says 'rates could rise soon' http://uk.reuters.com/article/uk-britain-boe-forbes-idUKKBN15M1KY Quote Link to comment Share on other sites More sharing options...
ExiledMatty Posted February 7, 2017 Share Posted February 7, 2017 Earning £s and living overseas totally sucks at the moment. Even Mexico seems expensive and they are having their own currency woes! Quote Link to comment Share on other sites More sharing options...
onlyme2 Posted February 7, 2017 Share Posted February 7, 2017 Could be entirely technical - i.e. move based on the charts and sterling retracing the large slumps last year. Quote Link to comment Share on other sites More sharing options...
Little Frank Posted February 7, 2017 Share Posted February 7, 2017 Worth a read if interested. https://www.ft.com/content/60c23bd8-dd16-3b07-9d8a-62ed73557cd7 Possible short run strength (if economy holds up) v long run (post-brexit) equilibrium Such a wide range of possible outcomes at this stage hedging exposure may be beneficial (or not, who knows) Most scenarios (as everything in Brexit) assume EZ/EU will continue as baseline. Ofc it may not but again, who knows. Quote Link to comment Share on other sites More sharing options...
Patient London FTB Posted February 7, 2017 Share Posted February 7, 2017 Trolls are back Quote Link to comment Share on other sites More sharing options...
spyguy Posted February 7, 2017 Share Posted February 7, 2017 No tech analysis bs. No bs commentary. Look at swiss franc v sterling over last 30 years. Not even up for debate. Quote Link to comment Share on other sites More sharing options...
durhamborn Posted February 9, 2017 Author Share Posted February 9, 2017 On 2/7/2017 at 3:28 PM, spyguy said: What do they want paying in? Dollars Id guess. Do you pay into an account outside of China i.e. one where they can keep the cash outside of China gov eyes? HSBC in Hong Kong and they will only take US$s.They then "pay" to their factories account on the mainland,HSBC are the bank of choice. Quote Link to comment Share on other sites More sharing options...
Blooman Posted February 9, 2017 Share Posted February 9, 2017 http://my.jetscreenshot.com/13048/20170209-9t9z-90kb here it is from april 75 Quote Link to comment Share on other sites More sharing options...
iamnumerate Posted February 9, 2017 Share Posted February 9, 2017 3 minutes ago, Blooman said: http://my.jetscreenshot.com/13048/20170209-9t9z-90kb here it is from april 75 Is that saying it was once 5.5? If so not joining the EEC/EU doesn't seem to have been a bad idea for Switzerland (not saying that it was the only factor, I am quite happy to copy a lot more from Switzerland). Quote Link to comment Share on other sites More sharing options...
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