coppercrutch Posted October 24, 2008 Share Posted October 24, 2008 What is happening to it is being kept rather quiet on the news don't you think... Link to comment Share on other sites More sharing options...
Jammy T Posted October 24, 2008 Share Posted October 24, 2008 What is happening to it is being kept rather quiet on the news don't you think... Not sure if it has bounced at all but earlier today it had dropped the most against the dollar in one drop for 37 years I think they need to keep quiet about the pound for the time being to allow a rumoured further 1% interest rate cut to be smoothed through. Link to comment Share on other sites More sharing options...
makateer Posted October 24, 2008 Share Posted October 24, 2008 Not seen the news, but judging by the BBC front page I don't think they could be any more obvious about the impending recession. Link to comment Share on other sites More sharing options...
Victorian Posted October 24, 2008 Share Posted October 24, 2008 What is happening to it is being kept rather quiet on the news don't you think... is it still 100 pence? Link to comment Share on other sites More sharing options...
Das Root Posted October 24, 2008 Share Posted October 24, 2008 Down to $1.55 per ?1 last I checked, 5% fall this AM alone. Didn't think it would drop past $1.50 but not sure now. Is the pound dying on it's arse and how is the dollar strengthening so much, even though we've supposedly rescued our banks, while they've just **** money on Lehmann Brothers mainly? Link to comment Share on other sites More sharing options...
the voice from above Posted October 24, 2008 Share Posted October 24, 2008 Off to the states next week but got my dollars at the start of the month when they were at 1.71 to the pound (thank ****!) Starting to think I should've changed loads more than I needed now. How low has it gone now? Link to comment Share on other sites More sharing options...
Guest S.U.S.S. Posted October 24, 2008 Share Posted October 24, 2008 Not sure if it has bounced at all but earlier today it had dropped the most against the dollar in one drop for 37 years I think they need to keep quiet about the pound for the time being to allow a rumoured further 1% interest rate cut to be smoothed through. 1% cant see it, 0.5% tops Link to comment Share on other sites More sharing options...
Jammy T Posted October 24, 2008 Share Posted October 24, 2008 Down to $1.55 per ?1 last I checked, 5% fall this AM alone. Didn't think it would drop past $1.50 but not sure now. Is the pound dying on it's arse and how is the dollar strengthening so much, even though we've supposedly rescued our banks, while they've just **** money on Lehmann Brothers mainly? For the time being the world still sees the Dollar as the safest currency Worryingly what is happening now is we have gone beyond bank runs and there are now country runs taking place - essentially foreign investors selling out of currency / stocks in foreign markets and getting it into safer shores. So S Korea, Argentina, Ukraine, Belarus and Hungary are all getting caned and a lot of that money is going into the dollar or dollar based investments There MAY be a genuine risk that it happens to the UK. Despite the blusterings of our government we have been widely recognised as having the worst per capita debt problem of the major economies, the most inflated property market, and the most unhealthy reliance upon the property market Couple that with the fact that our only 2 "industries" are finance and retail / services and it may be we are pretty goosed. I think the Dollar will take a pummelling at some point though. Probably around about the point where you cant see it do anything other than keep on going up.... Link to comment Share on other sites More sharing options...
coppercrutch Posted October 24, 2008 Author Share Posted October 24, 2008 Not sure if it has bounced at all but earlier today it had dropped the most against the dollar in one drop for 37 years I think they need to keep quiet about the pound for the time being to allow a rumoured further 1% interest rate cut to be smoothed through. Down to almost 1.50 against the $ Down nearly to 150 against the Yen I think Lost over 25% against both in a matter of months. The pound has been too strong for too long - however these drops are extremely fast. All the chat on the news about lowering interest rates. Almostt a universal call for rates down to 1-2%. Thing is many lenders won't actually pass this onto the public or businesses.- so cuts that low have little point. What will happen though is our currency will tank. Lower interest rates make us a less attractive currency to invest in. Yes it will be good for exports. However we import far more than we export. So it will hit pretty hard I reckon. All this talk of inflation peaking at 5.2% ? As our currency collapses I don't see how inflation can suddenly drop down to near 0 % ? I just cant see it even with all the talk of deflation. Everything we import, which is a lot, has suddenly increased in price for many of the countries it comes from. This will have to be passed onto the consumer. Maybe the interest rate drop to 1% has already been priced in to the new FX rates by traders ? Link to comment Share on other sites More sharing options...
coppercrutch Posted October 24, 2008 Author Share Posted October 24, 2008 For the time being the world still sees the Dollar as the safest currency Worryingly what is happening now is we have gone beyond bank runs and there are now country runs taking place - essentially foreign investors selling out of currency / stocks in foreign markets and getting it into safer shores. So S Korea, Argentina, Ukraine, Belarus and Hungary are all getting caned and a lot of that money is going into the dollar or dollar based investments There MAY be a genuine risk that it happens to the UK. Despite the blusterings of our government we have been widely recognised as having the worst per capita debt problem of the major economies, the most inflated property market, and the most unhealthy reliance upon the property market Couple that with the fact that our only 2 "industries" are finance and retail / services and it may be we are pretty goosed. I think the Dollar will take a pummelling at some point though. Probably around about the point where you cant see it do anything other than keep on going up.... It has too. Their basic economic fundmanentals are shocking. Their debt alone is simply staggering. Coudl be true what you say as the 'safe haven' class of the dollar. Clearly this is a little misguided ? I would think the dollar must be one of the riskiest currencies ? Gold tanking too. Sold out with my shares last week. Had enough of that rollercoaster !! Link to comment Share on other sites More sharing options...
Jammy T Posted October 24, 2008 Share Posted October 24, 2008 It has too. Their basic economic fundmanentals are shocking. Their debt alone is simply staggering. Coudl be true what you say as the 'safe haven' class of the dollar. Clearly this is a little misguided ? I would think the dollar must be one of the riskiest currencies ? Gold tanking too. Sold out with my shares last week. Had enough of that rollercoaster !! Gold will bounce back - although the mining stocks, well, some will go bust at the price gold is just now, so you're maybe safe enough. You should THINK about buying some sort of physical gold ETF though if the price sinks further. Tracks the price of gold and is backed by a vault of the real stuff. Re the Dollar - nothing goes up in straight lines. The Dollar has the classic look of a currency bubble to me.... Oh and as an aside one the main reasons for golds drop is the dollars strength. The stronger the dollar the less it costs to buy things priced in dollar (same goes for oil) So when the dollar does drop, guess what.... Link to comment Share on other sites More sharing options...
Das Root Posted October 24, 2008 Share Posted October 24, 2008 JT, any thoughts on when that bubble will burst? Pound dropped $0.20 in 4 days, but not a whistle about it on the news. I'd say a $1.85 would be far more even handed, $2.00 was always just a crash waiting to happen. Link to comment Share on other sites More sharing options...
coppercrutch Posted October 24, 2008 Author Share Posted October 24, 2008 Gold will bounce back - although the mining stocks, well, some will go bust at the price gold is just now, so you're maybe safe enough. You should THINK about buying some sort of physical gold ETF though if the price sinks further. Tracks the price of gold and is backed by a vault of the real stuff. Re the Dollar - nothing goes up in straight lines. The Dollar has the classic look of a currency bubble to me.... Oh and as an aside one the main reasons for golds drop is the dollars strength. The stronger the dollar the less it costs to buy things priced in dollar (same goes for oil) So when the dollar does drop, guess what.... If I go for gold it is going to be the physical in the hand variety. Anything backed by the real stuff may be hard to get if everything goes to the wall. Physical gold is supposed to be a basic protection against the system going teets up. Not sure if I will though. Fact is nothing looks safe at the moment. Agree about the Dollar being bubble territory. Everything else recently that has shot up has collapsed fairly soon after. No reason to think the Dollar with be different. If I had anything in dollars I would be selling ASAP. In fact my mining shares were in $ so that probably saved me a few hundred pounds when selling them. Down just over 50% in the end !! Without the dollar strength I reckon that could have been closer to 70% - bought hem when it was $2.05 to the pound. What is your plan by the way ? Any ideas for a safe inflation and currency/commodity destruction free zone ? Only thing I can think of is Class 'A' narcotics !! Link to comment Share on other sites More sharing options...
maroonlegions Posted October 24, 2008 Share Posted October 24, 2008 What is happening to it is being kept rather quiet on the news don't you think... the banks are quietly hoarding it from the bail outs and then charging us sukers INTEREST ON IT. Link to comment Share on other sites More sharing options...
Geoff Kilpatrick Posted October 24, 2008 Share Posted October 24, 2008 The interesting question now is what happens to the Euro against the dollar - you have economies, like Ireland, in the Euro that rely on trade with the States to generate GDP alongside the likes of Germany, which doesn't. Add in the French threatening to "beggar my neighbour" with protection of their native industries and there is every possibility the Euro will be stretched to breaking point. And if that happens, all bets are off! Link to comment Share on other sites More sharing options...
Geoff Kilpatrick Posted October 24, 2008 Share Posted October 24, 2008 BTW, shares in UK banks are taking an absolute pummelling today! Link to comment Share on other sites More sharing options...
coppercrutch Posted October 24, 2008 Author Share Posted October 24, 2008 The interesting question now is what happens to the Euro against the dollar - you have economies, like Ireland, in the Euro that rely on trade with the States to generate GDP alongside the likes of Germany, which doesn't. Add in the French threatening to "beggar my neighbour" with protection of their native industries and there is every possibility the Euro will be stretched to breaking point. And if that happens, all bets are off! BTW, shares in UK banks are taking an absolute pummelling today! Eurozone coming to an end ? I think historically in tough times countries becom far more insular - looking after their own. How can the Eurozone cope with making decisions that work for all it's members ? Who will blink first ? A relatively strong one, like Germany, who is being dragged down by the dross ? A relatively weak one, like Spain or Ireland, who feels they have to take tougher action with their own economy than the Eurozone ever will ? Will be interesting to watch. Doesn't fit in with the 'One World Government' though Maroonlegions ? Bad thing for you Geoff is the Aussie dollar is doing even worse than the UK pound I think in the UK inflation worries are far from over. I recfkon they have come a bit quick of the mark with the declarations of 'inflation has peaked'. Probably done to allow a quick drop in IR's. However have these people included the impact of a devalued pound on the inflation figures ? Or do they simply not care ? ONE BIG MESS - ALL OVER !! As for UK banks?..insolvent - most of them. Link to comment Share on other sites More sharing options...
Geoff Kilpatrick Posted October 24, 2008 Share Posted October 24, 2008 Eurozone coming to an end ? I think historically in tough times countries becom far more insular - looking after their own. How can the Eurozone cope with making decisions that work for all it's members ? Who will blink first ? A relatively strong one, like Germany, who is being dragged down by the dross ? A relatively weak one, like Spain or Ireland, who feels they have to take tougher action with their own economy than the Eurozone ever will ? Will be interesting to watch. Doesn't fit in with the 'One World Government' though Maroonlegions ? Bad thing for you Geoff is the Aussie dollar is doing even worse than the UK pound I think in the UK inflation worries are far from over. I recfkon they have come a bit quick of the mark with the declarations of 'inflation has peaked'. Probably done to allow a quick drop in IR's. However have these people included the impact of a devalued pound on the inflation figures ? Or do they simply not care ? ONE BIG MESS - ALL OVER !! As for UK banks?..insolvent - most of them. I'm relaxed about that for now - Australia is suffering because the yen carry trade market is effectively over as companies repatriate cash. However, countries who have resources will still have relatively robust currencies. Besides, I'm watching the pound exchange rate for my trip back in February (which goes ahead provided Qantas and BA don't go bust!). Link to comment Share on other sites More sharing options...
Rab Posted October 24, 2008 Share Posted October 24, 2008 What is happening to it is being kept rather quiet on the news don't you think... I think it's absolutely fantastic news Link to comment Share on other sites More sharing options...
alwaysthereinspirit Posted October 24, 2008 Share Posted October 24, 2008 Last year it was costing me $2.02 to get a pound. Coming home in November and cant say I'm not happy right this second. Link to comment Share on other sites More sharing options...
maroonlegions Posted October 24, 2008 Share Posted October 24, 2008 CNBC Economist Blames " Paulson And The Illuminati" For The Economic Chaos ' This morning on CNBC Squawk Box, Jeffrey Sawt of Raymond James stated that "Paulson and The Illuminati of the Country" are resposible for the economic chaos that has been unfolding. The statement comes at 3.13 into the video and is well worth waiting for.' Watch here... INTERESTING. planed economic collapse, how very surprising. Link to comment Share on other sites More sharing options...
maroonlegions Posted October 24, 2008 Share Posted October 24, 2008 http://www.cnbc.com/id/15840232?video=902540383 Link to comment Share on other sites More sharing options...
jambos are go! Posted October 24, 2008 Share Posted October 24, 2008 At over $2 the pound was overvalued IMO some were around $1.50 is its natural level if you consider like for like prices. Interest rates are the main driving and its certain UK rates will fall shortly. US rates are much lower so money will move from sterling to the dollar as the rate gap closes. Its not rocket science and a few commentators forecast the pond would fall may weeks ago when the crisis was in its infancy. For that reason I bought dollars for next years holiday at $1.80. Wished I'd had the courage to buy a lot more. Link to comment Share on other sites More sharing options...
Jamblow Posted October 24, 2008 Share Posted October 24, 2008 WTF - Defo blamed the Illuminati. If this guy says it there must be an element of truth. Who are these guys? Link to comment Share on other sites More sharing options...
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