Monday, March 4, 2013
Game Changing collapse of GBP vs USD
Well, check out the chart above, and you will see that the recent drop in Sterling looks like a break out from the more stable pattern that has characterized Sterling's stability against the USD to circa 1.55 USD to the pound since its COLLAPSE in 2008 from 2-USD to the pound to 1.4. Looks like our trade surplus with America and the rest of the world is about to increase and maybe our deficit with the EU is about ti reduce, but hold your hat for significant internal inflation and a sudden drop in Sterling. This correction is the medicine, but remember that loose monetary policy made it necessary in the first place. Got gold?