1.93's A$ to the Pound!!!
#1216
Re: 1.93's A$ to the Pound!!!
It appears Merv opened his mouth again !
Sterling plunges as King warns on money scheme
http://business.timesonline.co.uk/to...cle7037399.ece
Sterling falls after King hints at more QE
http://www.ft.com/cms/s/0/21a8203c-2...44feab49a.html
Sterling plunges as King warns on money scheme
http://business.timesonline.co.uk/to...cle7037399.ece
Sterling falls after King hints at more QE
http://www.ft.com/cms/s/0/21a8203c-2...44feab49a.html
each and every time, i sit there and watch and say nonononoplease no i think it is all very planned, not that the uk is fine and dandy cos its not
,or he is very stupid and he could do with a bit of rara oz spin on the positive side of the street or they are going to crash it bad if some thing untoward happens
#1219
Re: 1.93's A$ to the Pound!!!
That's exactly their aim and doing a pretty good job on it! But on the whole good for Britain if it can reduce it's trade deficit but only good depending on what side of the fence you are! We are all on the wrong side...
Glad to hear it's gone up a bit!
Glad to hear it's gone up a bit!
#1220
Re: 1.93's A$ to the Pound!!!
never new jot about fx trading,but now understand most of what is going on not all by long shot,but six to eight months reading and watching on daily basis gives a girl a good insight,
#1221
Re: 1.93's A$ to the Pound!!!
http://www.guardian.co.uk/commentisf...lobalrecession
http://www.economicshelp.org/diction...valuation.html
Last edited by freebo; Feb 23rd 2010 at 8:23 pm.
#1222
Re: 1.93's A$ to the Pound!!!
It could be worse than that, one theory is that several countries are involved in "competitive devaluation", basically if you owe large amounts in your own currency, but the value of that currency drops by half then the debt is twice as easy to pay off, and lots of western countries, including the UK have very big overseas debts. Printing more of your currency is likely to make it go down in value.
http://www.guardian.co.uk/commentisf...lobalrecession
http://www.economicshelp.org/diction...valuation.html
http://www.guardian.co.uk/commentisf...lobalrecession
http://www.economicshelp.org/diction...valuation.html
#1223
Account Closed
Joined: Jun 2005
Posts: 9,316
Re: 1.93's A$ to the Pound!!!
I'd say that Messrs King et al are keeping the pound low not so much for exports but because they're not in a position to raise it.
QE doesn't create any new money it spreads the existing money more thinly. By creating more pounds without expanding the economy the government has basically borrowed money from everyone that holds pounds. Until the economy starts generates real wealth to back up the QE generated pounds or they start destroying the QE generated pounds then the exchange rate will remain low.
QE doesn't create any new money it spreads the existing money more thinly. By creating more pounds without expanding the economy the government has basically borrowed money from everyone that holds pounds. Until the economy starts generates real wealth to back up the QE generated pounds or they start destroying the QE generated pounds then the exchange rate will remain low.
#1224
Re: 1.93's A$ to the Pound!!!
[quote=MartinLuther;8369149]I'd say that Messrs King et al are keeping the pound low not so much for exports but because they're not in a position to raise it.
QE doesn't create any new money it spreads the existing money more thinly. By creating more pounds without expanding the economy the government has basically borrowed money from everyone that holds pounds. Until the economy starts generates real wealth to back up the QE generated pounds or they start destroying the QE generated pounds then the exchange rate will remain low.[/uote]
maybe not so sure but who knows, fx sites suggest that they are trying to control the gbp as much as they can by rumor but this is just a theory that is just like everyone else but thats the one they are running with at the mo
QE doesn't create any new money it spreads the existing money more thinly. By creating more pounds without expanding the economy the government has basically borrowed money from everyone that holds pounds. Until the economy starts generates real wealth to back up the QE generated pounds or they start destroying the QE generated pounds then the exchange rate will remain low.[/uote]
maybe not so sure but who knows, fx sites suggest that they are trying to control the gbp as much as they can by rumor but this is just a theory that is just like everyone else but thats the one they are running with at the mo
#1225
BE Enthusiast
Thread Starter
Joined: Jun 2008
Posts: 730
Re: 1.93's A$ to the Pound!!!
be 1.80 again b4 we know it and I'll be kicking myself I never bought £ vs A$ at 1.71 as I already am and that was only yesterday!
#1227
BE Enthusiast
Thread Starter
Joined: Jun 2008
Posts: 730
Re: 1.93's A$ to the Pound!!!
I became obsessed with all this but now I have my first baby on the way it's kinda put it all in perspective!
All 3 of us will still go to Oz and my little family of £'s will stay in UK until worth something!
#1228
Re: 1.93's A$ to the Pound!!!
It does create new money. QE doesn't involve literally printing more notes but by purchasing treasuries the central bank literally magics up money out of thin air.
http://en.wikipedia.org/wiki/Quantitative_easing
http://en.wikipedia.org/wiki/Quantitative_easing
#1229
Re: 1.93's A$ to the Pound!!!
It could be worse than that, one theory is that several countries are involved in "competitive devaluation", basically if you owe large amounts in your own currency, but the value of that currency drops by half then the debt is twice as easy to pay off, and lots of western countries, including the UK have very big overseas debts. Printing more of your currency is likely to make it go down in value.
http://www.guardian.co.uk/commentisf...lobalrecession
http://www.economicshelp.org/diction...valuation.html
http://www.guardian.co.uk/commentisf...lobalrecession
http://www.economicshelp.org/diction...valuation.html
#1230
Account Closed
Joined: Jun 2005
Posts: 9,316
Re: 1.93's A$ to the Pound!!!
It does create new money. QE doesn't involve literally printing more notes but by purchasing treasuries the central bank literally magics up money out of thin air.
http://en.wikipedia.org/wiki/Quantitative_easing
http://en.wikipedia.org/wiki/Quantitative_easing