Tuesday, November 17, 2009

Sterling Crisis

Where the $ goes the £ follows. Gold is a hedge against currency devaluation - a store of wealth. So let's see what investors and traders are saying about Gold:

Gulp, and people say that the £ will collapse before the $. I'm thinking Brown's gonnie keep the money printing boogie going until the election. He doesn't really give a funky's muck what happens thereafter. Will the election hit before hyper-inflation?

The £ has devalued around 30% in the last year or so. That means your house, shares, bonds, benefits and salary are worth 30% less in the world market. Did you get the printed money that is devaluing everyone's wealth? No, the bankers did. Mmm, transfer = robbery and you still don't get it. It goes on and on and no-one gets it. Why is that when the banks bend you over the table and repeatedly abuse you, you ask for more? More quantative easing, yes yes - pillage me Gordon, harder harder more..

Another hedge against currency devaluation is oil - that's why the latter is going up in price = inflation. Just as well Brown has some of the black stuff to sell or no-one would buy OUR debt. It buys a little more time before the lights go out.


mclins said...

Yup, even if fowks understand the cloak and dagger term that is 'quantitative easing' they don't get what effect printing money has on the economy.

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