Doom Lord Posted January 3, 2008 Share Posted January 3, 2008 The current crisis will end in the annihilation of the purchasing power of and total loss of public confidence in all currencies, followed by a return to the international gold standard by popular demand.This is all you need to know and is 100% correct, guaranteed. But if currency A depreciates against currency B then currency B in appreciating in value. How could holders of currency B loose confidence in currency B as they have just got richer? For instance the Pound has achieved record levels against the Yen in the past year but you don't hear anyone in England saying that the whole system is about to fail because the Yen has lost so much value. We are about to enter an economic downturn in this country but as long as more than one currency exists in this world then some form of currency exchange will still exist whether is back by gold or not. Quote Link to comment Share on other sites More sharing options...
shuggyboy24 Posted January 3, 2008 Share Posted January 3, 2008 so guys with a £1000 (paltry sum) what is a quick way of making a few quid from changing sterling to another currency? cheers Quote Link to comment Share on other sites More sharing options...
Injin Posted January 3, 2008 Share Posted January 3, 2008 But if currency A depreciates against currency B then currency B in appreciating in value. How could holders of currency B loose confidence in currency B as they have just got richer? For instance the Pound has achieved record levels against the Yen in the past year but you don't hear anyone in England saying that the whole system is about to fail because the Yen has lost so much value.We are about to enter an economic downturn in this country but as long as more than one currency exists in this world then some form of currency exchange will still exist whether is back by gold or not. I think it's because of the flow of trade. As key industries rely on exporting to the yanks, as the dollar goes down, the other counries chase it to remain able to export, leading to he price of everything going up everywhere on earth. At a certain point people start to dump paper and get into real assets, slapping the velocity of money way up and therefore causing even more inflation. It's a wonderful death spiral of the sort you can only get when you put a lunatic in charge of a printing press. Add to this the fact that everyone who is doing the exporting holds trillions of dollars and will want to spend them on something, anything before they become worthless......and - This is the global monetary holocaust of Cgnao's fabled guarantee. Quote Link to comment Share on other sites More sharing options...
Realistbear Posted January 3, 2008 Share Posted January 3, 2008 Ok, so if the Pound, Dollar and Euro are toast, what currency next ??? US $ and Pacific Rim currencies should do well. The US economy has built-in resilience and the average age of the population is much younger than Olde Europe. China has a serious aging problem which is pay-pack for their decades of one-child only. Health care for the old will be huge in China. However, the Chinese are adept at "final solutions" to those kinds of problems. Fanshen based on age? Quote Link to comment Share on other sites More sharing options...
drminky Posted January 3, 2008 Share Posted January 3, 2008 But if currency A depreciates against currency B then currency B in appreciating in value. How could holders of currency B loose confidence in currency B as they have just got richer? For instance the Pound has achieved record levels against the Yen in the past year but you don't hear anyone in England saying that the whole system is about to fail because the Yen has lost so much value.We are about to enter an economic downturn in this country but as long as more than one currency exists in this world then some form of currency exchange will still exist whether is back by gold or not. No, this is a major fallacy, albeit a very common one. Currency B have got poorer as well. They may think they've got richer, but they haven't. The pound might have shot up against the yen in the last 5 years, but has that given any relief to your council tax bill? Or to your train fares? Or has it meant houses became more affordable? nope, everyone lost, some just lost more than others.. Quote Link to comment Share on other sites More sharing options...
Willy Weasel Posted January 3, 2008 Share Posted January 3, 2008 US $ and Pacific Rim currencies should do well. The US economy has built-in resilience and the average age of the population is much younger than Olde Europe. China has a serious aging problem which is pay-pack for their decades of one-child only. Health care for the old will be huge in China. However, the Chinese are adept at "final solutions" to those kinds of problems. Fanshen based on age? US Manufacturing is hardly very healthy based on the numbers released yesterday. 2 million Americans weigh over 40 stone so they may be younger but they sure ain't healthier. Quote Link to comment Share on other sites More sharing options...
what Posted January 3, 2008 Share Posted January 3, 2008 The LR data appears to have boosted sterling a couple of ticks both against the EU and the $. Shows you how sensitive the traders are to perceptions about Gordon's miracle house prices. The pound has hardly strengthedn, the figures are just government spin and the markets know it. Quote Link to comment Share on other sites More sharing options...
Doom Lord Posted January 3, 2008 Share Posted January 3, 2008 I think it's because of the flow of trade. As key industries rely on exporting to the yanks, as the dollar goes down, the other counries chase it to remain able to export, leading to he price of everything going up everywhere on earth. At a certain point people start to dump paper and get into real assets, slapping the velocity of money way up and therefore causing even more inflation. It's a wonderful death spiral of the sort you can only get when you put a lunatic in charge of a printing press. Add to this the fact that everyone who is doing the exporting holds trillions of dollars and will want to spend them on something, anything before they become worthless......and -This is the global monetary holocaust of Cgnao's fabled guarantee. But not every Country can chase it down because when one side of a currency pair goes down the other side goes up. Thus the importer becomes the exporter and the balance is returned? Quote Link to comment Share on other sites More sharing options...
Injin Posted January 3, 2008 Share Posted January 3, 2008 But not every Country can chase it down because when one side of a currency pair goes down the other side goes up. Thus the importer becomes the exporter and the balance is returned? Assuming that they can switch industries, sure. Assuming that they can switch industries very quickly, sure. Assuming they can get the resources they need to do both of those things, also sure. But if they could do that, why trade at all? Quote Link to comment Share on other sites More sharing options...
Warwick-Watcher Posted January 3, 2008 Share Posted January 3, 2008 US Manufacturing is hardly very healthy based on the numbers released yesterday.2 million Americans weigh over 40 stone so they may be younger but they sure ain't healthier. No wonder sea levels are rising - the land is getting squashed ! Quote Link to comment Share on other sites More sharing options...
Doom Lord Posted January 3, 2008 Share Posted January 3, 2008 Assuming that they can switch industries, sure. Assuming that they can switch industries very quickly, sure. Assuming they can get the resources they need to do both of those things, also sure. But if they could do that, why trade at all? Why do it yourself when you can someone else to do the work for you for less? Quote Link to comment Share on other sites More sharing options...
YoungFTB Posted January 3, 2008 Share Posted January 3, 2008 Where do you think the £ is headed Vs the $? Could we be around $1.80 = £1 in the next few months? Any thoughts on what it'll be near the end of 2008? Quote Link to comment Share on other sites More sharing options...
Injin Posted January 3, 2008 Share Posted January 3, 2008 Why do it yourself when you can someone else to do the work for you for less? Exactly. Quote Link to comment Share on other sites More sharing options...
Bobajobbob Posted January 3, 2008 Share Posted January 3, 2008 A collapse in sterling isn't going help the Hosue Price Crash as every Tommaso, Dickberg and Harrald in Europe will be coming over here to snap up cheap property. Quote Link to comment Share on other sites More sharing options...
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