The British run out of "QE" monet next week

[Mega]

I think this is the bit were the Spock sez to Kirk:-

"Phases out, warp drive out, Sheilds out"

Mike

[peakishmael]

Re: The British run out of "QE" monet next week

I think this is the bit were the Spock sez to Kirk:-

"Phases out, warp drive out, Sheilds out"

Mike

Sounds more like Scotty than Spock... did you have a link?

[GRG55]

Re: The British run out of "QE" monet next week

I think this is the bit were the Spock sez to Kirk:-

"Phases out, warp drive out, Sheilds out"

Mike

Quite the contrary Mega. You should be buying Sterling over Euro now.

[Mega]

Re: The British run out of "QE" monet next week

Why???????????
Mike

[GRG55]

Re: The British run out of "QE" monet next week

Why???????????
Mike

Because, like the US Dollar, it is going to go up some more compared to the Euro.

Despite the noises from Monsieur Trichet, the ECB is in no position to raise interest rates [the Germans are deluding themselves with talk of "asset bubbles" in a deflation-prone Europe]. At the same time the withdrawal of stimulus in the UK and USA is most probably going to put some upward pressure on interest rates, cause people to move out of the "risk-on" trades that worked so well from March of 2009, and should boost, at least temporarily, the exchange value of the US Dollar and UK Pound.

If China finally cracks, the strong Aussie and Canadian Dollars should also suffer. The Yen is now a basket case.

Barring an outright calamity, this could be the first year in many where Gold closes lower than it started the year [but I wouldn't sell my insurance position].

Soooo, if one is to hold cash at the moment, looks to me that US Dollar and Sterling are the two safest choices.

Just an opinion...