Why hasn't the UK £ Sunk?

[Mega]

http://www.moneymorning.com.au/20091...h-economy.html
It appears i am NOT the only one baffled on this?
Mike

[LargoWinch]

Re: Why hasn't the UK £ Sunk?

http://www.moneymorning.com.au/20091...h-economy.html
It appears i am NOT the only one baffled on this?
Mike

Plain spoken truth is what I call this.

Reality is sometimes painful isn't?


Here is a good quote that you do not see very often in the press, something EJ pointed out many times:

And they’re [Central Banks] helped by the hopeless analysis of the mainstream press.

[goadam1]

Re: Why hasn't the UK £ Sunk?

Plain spoken truth is what I can this.

Reality is a bitch isn't?


Here is a good quote that you do not see very often in the press, something EJ pointed out many times:

what should the mainstream press, the church, major league baseball and the rotary club do?

Should they talk about globalizing the job market, fiat currency, looming energy and food problems, degradation of the environment?

"hey were kinda screwed, unless you are in the top class. Now buy some shoes and medicine that makes your eyelashes longer."

[Techdread]

Re: Why hasn't the UK £ Sunk?

http://www.moneymorning.com.au/20091...h-economy.html
It appears i am NOT the only one baffled on this?
Mike

Crap article written by a right-wing prick.

Anytime I see comments like

"With the billions of pounds of debt and the billions of pounds spent each year on unaffordable and bankruptcy-inducing social programmes (such as the National Health Service) there is absolutely no way it can get itself out of the mire without doing something drastic."

As if spending 8% of gdp on health is going to bankrupt the nation.

Britian has not run out of Natural Resources, the most Important natural resource is it people and if you have not noticed we have been importing a lot of them latetly

[vinoveri]

Re: Why hasn't the UK £ Sunk?

Because the rapidly consolidating one-world financial order is maintaining a semblance of "stability" to insure an orderly transition!

http://www.bloomberg.com/apps/news?p...l.ti5V2w&pos=3
This is the new world order - note the G-20 nations all agree to keep printing money and giving it away to the select few.

We now are witnessing what is effectively a one global government allowed to issue and require acceptance of its fiat currency, created out of nothing, and destined to debase and devalue whatever savings people have in order to bail out others. This is an unprecedented massive wealth transfer on a global scale.

Remember, the $ and other fiat currencies are no longer "stores of value".

I predict gold ownership will either be made illegal again or heavily taxed within the next 5-10 yrs, and this will be done on an international scale.

[GRG55]

Re: Why hasn't the UK £ Sunk?

http://www.moneymorning.com.au/20091...h-economy.html
It appears i am NOT the only one baffled on this?
Mike

Why hasn't the UK £ Sunk?

It has already sunk. It fell significantly against virtually everything, even the moribund US Dollar. What more do you want?

[LargoWinch]

Re: Why hasn't the UK £ Sunk?

Because the rapidly consolidating one-world financial order is maintaining a semblance of "stability" to insure an orderly transition!

http://www.bloomberg.com/apps/news?p...l.ti5V2w&pos=3
This is the new world order - note the G-20 nations all agree to keep printing money and giving it away to the select few.

We now are witnessing what is effectively a one global government allowed to issue and require acceptance of its fiat currency, created out of nothing, and destined to debase and devalue whatever savings people have in order to bail out others. This is an unprecedented massive wealth transfer on a global scale.

Remember, the $ and other fiat currencies are no longer "stores of value".

I predict gold ownership will either be made illegal again or heavily taxed within the next 5-10 yrs, and this will be done on an international scale.

If they do this, won't this make gold more valuable?

Can "they" enforce this on all countries all at once? I doubt it.

It may happen in the US, but I suspect a lot of Buffalos (gold one) with a $50 face value will fly off the country in no time and I am not speaking of electronic transfers here.

[vinoveri]

Re: Why hasn't the UK £ Sunk?

If they do this, won't this make gold more valuable?

Can "they" enforce this on all countries all at once? I doubt it.

It may happen in the US, but I suspect a lot of Buffalos (gold one) with a $50 face value will fly off the country in no time and I am not speaking of electronic transfers here.

If the G-20 can agree on a coordinated stimulus to "reflate" the world economies, they can certainly agree to outlaw private gold bullion ownership in each of their countries. Black markets will rise up of course, but this doesn't change the fact that when they ban private ownership, as FDR did, there will be limited market checks on governments debasing their currencies and eroding savings .... everyone will be forced to buy/speculate in equities and bonds to have any chance in maintaining purchasing power .... which is of course just what the oligarchs want:eek:

The USD is going down relative to the other currencies precisely b/c it is the reserve currency, and this is the price the US is happy to pay for an orderly transition to an effective global fiat currency and be allowed to pay its debts in $.

I'll say it again:
Once there is a global fiat currency (or effectively one which we seem to be moving to), and associated legal tender laws to enforce its use, there will be little left to check central power economic planning etc., tin foil hat notwithstanding, we are a lot closer to global government/NWO than I had imagined even a year ago.

[hayekvindicated]

Re: Why hasn't the UK £ Sunk?

If they do this, won't this make gold more valuable?

Can "they" enforce this on all countries all at once? I doubt it.

It may happen in the US, but I suspect a lot of Buffalos (gold one) with a $50 face value will fly off the country in no time and I am not speaking of electronic transfers here.

Let them try to enforce it in India.

[Techdread]

Re: Why hasn't the UK £ Sunk?

If the G-20 can agree on a coordinated stimulus to "reflate" the world economies, they can certainly agree to outlaw private gold bullion ownership in each of their countries. Black markets will rise up of course, but this doesn't change the fact that when they ban private ownership, as FDR did, there will be limited market checks on governments debasing their currencies and eroding savings .... everyone will be forced to buy/speculate in equities and bonds to have any chance in maintaining purchasing power .... which is of course just what the oligarchs want:eek:

But would they not need an explanation for banning Gold?

[vinoveri]

Re: Why hasn't the UK £ Sunk?

But would they not need an explanation for banning Gold?

Of course, and they will have one or several, and I would suspect relating to a national emergency and to stabilize the financial system (or perhaps the international system). It will come when gold prices begin to soar and the government's recognize that repudiation of fiat currencies has begun in earnest.

Remember how fast the TARP got through the Congress based on a threat of an "imminent meltdown" of the system?

FDR did it to generate inflation and prevent hoarding, and to stop the deflation spiral.
http://www.aboutpreciousmetals.com/M...order_6102.htm

[GRG55]

Re: Why hasn't the UK £ Sunk?

If the G-20 can agree on a coordinated stimulus to "reflate" the world economies, they can certainly agree to outlaw private gold bullion ownership in each of their countries...

Not a hope in hell of this happening.

Let them try to enforce it in India.

Exactly.

In addition to India the G20 includes Saudi Arabia, South Africa and Turkey...all countries that, like India, have a long affinity with private ownership of gold.

Then there's the gold producers that include Argentina, Brazil, Australia, Canada, China, Indonesia, Mexico, Russia, and the aforementioned South Africa and Turkey. Does anyone seriously think that these nations are going to agree to eliminate the private gold market.

[c1ue]

Re: Why hasn't the UK £ Sunk?

To answer why the pound hasn't sunk - or for that matter why the US$ is still not falling off the cliff - one example to consider is the Soros' attack on the pound.

Prior to Soros, it was well known that the pound was vulnerable. But for years no one actually tried to test it, thus the pound plodded along.

But relatively quickly after Soros' started his maneuvers, the BOE had to capitulate.

So the answer is: the pound will fall if/when it is attacked. So far credit is still being extended to England, and until that changes the pound isn't going to achieve its theoretical low.

[hayekvindicated]

Re: Why hasn't the UK £ Sunk?

To answer why the pound hasn't sunk - or for that matter why the US$ is still not falling off the cliff - one example to consider is the Soros' attack on the pound.

Prior to Soros, it was well known that the pound was vulnerable. But for years no one actually tried to test it, thus the pound plodded along.

But relatively quickly after Soros' started his maneuvers, the BOE had to capitulate.

So the answer is: the pound will fall if/when it is attacked. So far credit is still being extended to England, and until that changes the pound isn't going to achieve its theoretical low.

1992 was a different world. The pound was fixed at an artificially high rate by the British Government. The attack simply moved it to a sustainable price. But in 1992 the British economy though in recession was not unhealthy. Debt levels were a fraction of what they are today and the government was basically solvent.

[Fiat Currency]

Re: Why hasn't the UK £ Sunk?

Once there is a global fiat currency (or effectively one which we seem to be moving to), and associated legal tender laws to enforce its use, there will be little left to check central power economic planning etc., tin foil hat notwithstanding, we are a lot closer to global government/NWO than I had imagined even a year ago.

Interesting comment. I would argue that we've already been there for quite some time now. All governments run fiat currencies, and today we use the USD$ as the reserve currency. All governments have legal tender laws. I would also argue that all governments already engage in central economic planning - some just more than others.

What do you think has to change to get you "there" in your mind? :confused:

In due course - I also predict - that gold will be found to be a fiat currency. It has been multiplied, capitalized, and sold several times over to different parties who believe they have a claim on the same ounce.

Frankly - I'm surprised we don't have a special section in the iTulip Select Community to discuss IMF SDRs. They are being constantly talked about now. It's just a basket of fiat currencies. The IMF may become the World's Federal Reserve if we're not careful.

At one point an SDR used to be 0.888671 grams of fine gold ... but not anymore. :eek: