The Dean

GBP getting crushed...........

It's a bit like Bison's penis............ nobody wants to hold it, they don't even want to touch it, and it is looking decidedly soft........... and it will probably never rise again to its previous level.

Sky Blue

Can it get any limper??? The exchange rate that is, not Bisons penis!!

The Dean

There is no limit to how limp it can get........... and sterling could weaken too.

Jim "The Mood" Rogers, investment guru (who it is alleged) 'spotted' all of this before it actually happened, said today that the "UK is finished". GBP/USD will go to parity (i.e. 1.00), he thinks.

Suits me...........

Sky Blue

Yeah I read about this guy in 24/7 a few weeks back, he predicted last year and before it was all going to go a bit pete tong, 1:1 that's scary! Even if I get paid AED and dont care really, how quick will this occur as then i can pay off my credit card in the UK in one fell swoop

still.unsure

as an aside, have you ever listened to 'the disciplined investor' podcast? bl--dy interesting stuff...

admon

mmm, pound/dollar parity?
Sorry can't see it, especially as the US is majorly in the crapper itself and I think there are far more skeletons to be found..

we shall watch and see, with interest.
On a personal note, I'd rather see a strong pound, but its unlikely to be over $1.50 for a while, maybe a long while..

The Dean

The US is, quite simply, a SAFE place to put your hard-earned. Nobody is looking for "attractive yields" (or whatever) any more - and people will continue to pile into the safe haven of US Treasury Bonds until they think it's safe to go back into the water................

Look at it this way - if you buy a 30-year T-Bond, you are in effect lending money for 30 years to the US Goverment - and at the moment you will earn less than 3 pct per annum for the privilege.

Attractive? No - but people have been buying them........... they just want safety.

Buying them requires you to buy USD first..... which means selling something else.................. euros, sterling, gold, oil............ whatever. Those will weaken as the USD strengthens. It's been happening since last July (when GBP/USD was at or just above 2.00).

I suspect the dollar will continue to strengthen until the whole sorry saga is over..............