Wednesday, April 2, 2008

If the gold is not at Fort Knox and it is not in the Bank of England, where the hell is it?

The Flagging Pound

The pound is now falling against the dollar as well. Last year the pound peaked against the dollar at around 2.04. According to xe.com the rate is now about 1.97. As the dollar is clearly not gaining in value, this must mean that it is the pound that is falling – and falling significantly faster than the dollar. All this raises a very simple question in my mind – What the hell is going on?

Posted by malct @ 01:48 PM (1269 views)
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11 thoughts on “If the gold is not at Fort Knox and it is not in the Bank of England, where the hell is it?

  • As I have said many times before, it is criminal that the media have so far covered up the drop in the pound against the euro, which is one of the main factors in the rising inflationary costs as the UK imports a huge amount of raw materials from the continent. At the moment the exchange rate is hovering around the 1.26 euros to the pound mark. Two weeks ago it was at 1.33 euros to the pound. Iceland has raised their rates because of shorting against their currency caused it to lose 30% against the euro, but I do not see GB encouraging the BoE to do that any time soon, even tough sterling has lost almost 20% against not just the euro but most of the 16 most traded currencies, as GB sold the countries gold to buy euros in 1999, so this is really good for him and if he has been prudent, which I doubt, good for the country coffers if he has left this euro stash safe in a vault somewhere. I say this with a caveat, he would have had gold reserves worth 4 times as much had he not sold them in 1999. This doesn’t, however bode well for the general public and, as once said by her majesty, we are about to have at least one “annus horibilus”, through massive inflation both primary and secondary. The teachers won’t be the only public sector workers to strike for pay this year. I want to be positive about the future, near and long term, but the government have been so utterly inept and to some extent corrupt, that I feel absolutely no confidence in their ability to turn the country around.

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  • Bystander, can I make a small amendment please – “…the government have been so utterly corrupt and to some extent inept…”

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  • …..absolutely, your amendment is just what it needed, wiltshire, thank you. LOL

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  • Tracking the housing finance breakdown: a saga of corruption, hypocrisy, and government complicity.

    The Mortgage Lender Implodometer http://ml-implode.com/

    Since late 2006 – 246 major U.S. lending operations have “imploded”

    shame we don’t have a site like this in the UK

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  • I remember back in the year 2000 or so when a struggling Euro was attracting ridicule from not only Economist but from popular shows. I remember Johnnie Vaughn ( true British Bulldog) smirking most mornings saying how we all soon would be able to exchange a few pounds and buy a German Company.
    You are right, bystander, a veil of silence seems to have descended onto the demise of Sterling.

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  • Aussie rates have just been held at 7.25% which would usually mean it would slide against other currencies. It has against the USD and the Euro but not the pound. Nevermind the tangible value of the pound, perhaps the markets just dont see it as a big player any more anf I would have to agree.

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  • bystander said:
    “As I have said many times before, it is criminal that the media have so far covered up the drop in the pound against the euro”

    bystander – I couldn’t agree more. Wilson got a right going over in the 60s when he devalued the pound [14% I believe] and yet not a dickie bird has been said publicly about the 19 or 20% devaluation we’ve just had.

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  • Remenber, I told you folks back in September.
    The pound is going to 1.7 to the dollars in one year
    the question is will the Euro weaken in the meanwhile?
    let us all hope so

    sorry for being provocative, but please forget gold…

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  • “This doesn’t mean to say that the pound in your pocket is worth any less” – Harold Wilson circa 1964, one of the greatest Labour party liars ever. I can remember seeing and hearing him utter those immortal lines on the TV even now, such was the scale of the lie. No doubt Mr Potato Head & The Badger are working out a similar wheeze to con the great unwashed before much longer.

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  • western countries are obliged to care for the sick, poor, elderly and any other person who needs assistance, education is provided. we are free to choose our own destiny within reason and this democratic society even provides a small state pension. We are trading and relying on countries around the world that undermine freedom and do not provide the same level of care for its people, these countries have been able to undercut western prices and now dominate trade holding the purse strings to many countries especially america, the falling value of the dollar and China’s increasing interest and engagement with Africa, which is a threat to US commercial interests and the fact that the west is energy poor. the skills and raw materials for mass production are in countries that were known as the third world, these countries will now dominate and as they develop western countries will find it difficult to maintain the standard of living, incomes will fall, inflation will increase and currency values will fall generally as the new trading powers expand and develop. This will force western countries to cut welfare and become more self sustaining and the UK will realise that it needs to reinvest in manufacturing and develop a skilled workforce so that we are not totally reliant on banking and insurance which does not have a guaranteed future.

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  • waiting for the crash says:

    Great site malct

    Can we have an imploder here webmaster? It could include all those lenders such as first direct who have stopped lending. We should call it the We’re-Not-lending-Anymore-o-Meter

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