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The Pound - What Next?

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Like has happened in the US, I am pretty sure that the BoE will be bullied by Gordon into cutting rates in a few months time when HPC will be full on and the economy tanking.

As we know British consumers/homeowners are just about the most indebted in the world with a high percentage of variable rate loans and the pressure will just be too great ....

Unlike the dollar (and the Euro) however, the Pound is not a major reserve and trading currency, and will therefore be much more vulnerable to attacks from speculators. There is also the issue of the UK's record trade deficit.

How low will the Pound go (bearing in mind that the UK is heavily dependent on imports for a wide range of products and the government will need to raise tenths of billions on the bond market)?

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Like has happened in the US, I am pretty sure that the BoE will be bullied by Gordon into cutting rates in a few months time when HPC will be full on and the economy tanking.

As we know British consumers/homeowners are just about the most indebted in the world with a high percentage of variable rate loans and the pressure will just be too great ....

Unlike the dollar (and the Euro) however, the Pound is not a major reserve and trading currency, and will therefore be much more vulnerable to attacks from speculators. There is also the issue of the UK's record trade deficit.

How low will the Pound go (bearing in mind that the UK is heavily dependent on imports for a wide range of products and the government will need to raise tenths of billions on the bond market)?

This -

GreenWheelBarrowCash.jpg

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This -

By the time he gets to the shop the loaf will have doubled in price. ;)

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Hard to say but I doubt even the Euro or dollar could resist the speculators in the current climate.

Going after any currency at the moment though could bring a visit from the secret services and a mysterious death.

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I think all currencies will sink together as the downturn appears global. I'm sure the Euro will crack at some point though.

I will buy some Yen this week and I already have some gold.

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As i see it inflation is well into the double digits so money in the bank is going down in value and whilst you can stem some of the loss by swiching to say euro's and then back again you will still find that Europe is playing the same game when it comes to interest rate.

Gold/Silver is jhoney come lately so what can you do.

we are all in a riged game where the banker is the devil and makes the rules up as he goes along.

The only edge i can offer is to stock up on food supplies to protect against rising prices and will come in handy if we get a total meltdown.

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As i see it inflation is well into the double digits so money in the bank is going down in value and whilst you can stem some of the loss by swiching to say euro's and then back again you will still find that Europe is playing the same game when it comes to interest rate.

Gold/Silver is jhoney come lately so what can you do.

we are all in a riged game where the banker is the devil and makes the rules up as he goes along.

The only edge i can offer is to stock up on food supplies to protect against rising prices and will come in handy if we get a total meltdown.

Peter Schiff thinks gold could go to $2000 and that the Yuan could appreciate 500% against the dollar.

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I think all currencies will sink together as the downturn appears global. I'm sure the Euro will crack at some point though.

I will buy some Yen this week

I've be tempted, but my ignorance gets in the way as usual.

In a world-wide depression wont Japan be particularly vulnerable?

Big on maufacturing & low on natural resources, not used to high unemployment

Or will this finally be the time to wind the currency up? .... noting the BOJ rate is still 0.5%

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Hard to say but I doubt even the Euro or dollar could resist the speculators in the current climate.

Going after any currency at the moment though could bring a visit from the secret services and a mysterious death.

The age old myth that the currency market can be controlled. Its much too big for any group to control it. It dwarfs any of the other markets by some considerable distance.

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Peter Schiff thinks ... that the Yuan could appreciate 500% against the dollar.

Interesting. Was doing some analysis for my blog yesterday and initially concluded that by 2012 China GDP could be bigger than US in dollar terms. Didn't post it as it seemed crazy based on current GDP numbers - but if Mr Schiff is right and the yuan appreciates that much then it will happen.

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If Yuan appreciates 500% to USD then no American (and no latin American too for that matter) will be able to afford Chinese stuff, which means no more economic growth in China.

Dollar will rebound soon. Don't worry about it. What worries me now is the euro.

If you want pu money in some fiat currency choose either Icelandic Krona as it pays 16% pa or Australian Dollar as it pays 9%.

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  • 395 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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