Buy sterling. Buy lots of sterling. 1.40 is an insanely low rate; anyone who believes it to be sustainable is, quite literally, mentally ill.
(also, our banks are less fucked than yours; our government is just less dishonest than yours about it…)
The idle musings of John Band
Buy sterling. Buy lots of sterling. 1.40 is an insanely low rate; anyone who believes it to be sustainable is, quite literally, mentally ill.
(also, our banks are less fucked than yours; our government is just less dishonest than yours about it…)
I remain neutral but doubtful concerning your advice. Personally, I would prefer gold.
gold rises in times of gibbering paranoia. this is a time of gibbering paranoia, ergo gold has risen. at some point it will fall. you may well make money investing in gold now and selling if things are even worse in 12 months; you will lose money holding gold in the long run.
testa
Americans,
I'm not too sure about John's plan. $1.50 to the pound seems a sensible long-term rate, and that (from $1.40, admittedly not from today's level) would give you a gain of only about 7%. Once you've paid your costs, and foregone whatever interest you can get, it's hardly worth the candle.
Of course the dollar might collapse. But the odds on it collapsing more than sterling seem about as much as it collapsing less than sterling – your property market is further advanced than ours, your international banking sector is smaller, there is no prospect of George Osborne being in charge of your Treasury.
Incidentally the gold price isn't any higher than it was this time last year in dollar's. In sterling it's another story, but then most things are.
As a gibbering paranoiac I take expeption: I'm sinking all my savings into canned food and ammunition.
What do you think it hangs on? If Jim Rogers is right, that it's only a low rate if the City recovers strongly and/or we are able to expand exports quickly. Beats me.
No: if Jim Rogers is right in everything that he says, then the US banking system is going to tank even worse than the UK's, and the $ will do the same. To believe that the £ is permafucked against the $ requires you to believe that Rogers is right about the UK but wrong about the US, which is possible but unlikely.
Unfortunate name for a pundit, "Jim Rogers". There was a chap with the same name who kept banging on about a commodity super-cycle last year.
Ah yes.
Might the whole "world's reserve currency" thing achieve that?
see Brad here