Saturday, July 19, 2014
Collapsed pound
Goldman slams Abenomics
The report by Goldman Sachs essentially states that as Abe collapses the yen, the additional money flow unevenly, and the first to benefit and profit and exporters and foreigners, whose relative purchasing powers increase. These profits are realised as the money flows more completely around and an equilibrium forms. How then, can the UK, which collapsed the pound at an extreme level from 240 yen to 140, 40% of value gone, have avoided a similar iniquitous transfer of wealth ? The only people guaranteed to lose from the BoE response to the financial crisis were the population of the UK, which begs the question when does our loss of wealth become (even more) clearly visible? The answer being, I think, when the offsetting gov. borrowing splurge finishes.
Posted by stillthinking @ 12:10 PM (4785 views)
4 thoughts on “Collapsed pound”
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icarus says:
Abenomics =
Tax increase for workers/consumers whose real wages are falling.
Record numbers of part-time, temporary, non-regular jobs.
Companies sitting on record piles of cash.
QE liquidity + playing the stockmarket with the Government Pension Investment Fund to boost asset prices and the incomes of the !%, who are demanding bigger dividends and more share buy-backs (to boost share prices) than ever before.
A corporate tax cut.
britishblue says:
I am just half way through a new book called the he Death of Money: The Coming Collapse of the International Monetary System by
James Rickards. He is no fool or fantasy author. I recommend that any one who is uneasy about the seamingless, endless inflation of assets in the UK and the strength of the pound reads it. Its startling to understand that there have been two collapses of the US dollar in the last century, the last in 1978, when some countries refused to accept dollars as payment for hotel bills in Europe. There is no guarantee that longer term that the US dollar will remain the worlds reserve currency and the pound will defy gravity. He hasn’t mentioned the UK in his book so far, but the implications for the City of London are huge and for the UK’s London housing market.
Sarahg says:
britishblue – can you, or someone else, spell out to me what you think those implications are?
britishblue says:
Hi Sarahg. i download the above book from amazon. It will take 2 minutes to get an online copy, it ties up many, many loose ends.