Help . . . Is The £ Going Into Free-fall?

[chiang mai]

OK I am going to something I don't usually do I am going to make a prediction on Stirling.

Currently I/we earn in this currency and have no plans to move money off shore (to say Thailand) simply because the rates are against us.

However I think things will be very different in one year’s time for the following reasons:

The USD is currently VERY, VERY artificially high. This is apparently because there has been a forced selling of assets and the USD has benefited from this.

However IMO when this forced selling comes to an end several factors will underpin its rapid decline.

1) The Chinese appear to be spending their USD at this current high, to fund internal projects on a massive scale.

2) The US has an aging population The Fractional Reserve System currently in place which need exponential amounts of credit to be generated will break down.

3) It appears that there is 'no need to change the way we issue currency' - i.e. debt is still the way to go - It would appear the matter is not discussed much in the media.

4) The US taxpayer who if rational did not become embroiled in this mess now is. They are being forced to bail out those who were irrational, and the system is to continue.

5) US debt seems to be unstoppable

With the flood of this kind of USD into the system there are not many currencies left to go for.

Whilst the UK is also in a similar position it actually is not as big (by orders of magnitude) in terms of its impact on the world economy. As one of the few currencies left I think in one (maybe two years) we will see a sharp increase in its value at which time I will take action to shift the built up resources I will have. BTW IMO this may be the last major improvement in GBP vs. other currencies. After which it will meet the same end as the USD, IMO worthless.

I would appreciate any feedback on my thoughts - especially negative feedback.

If you earn in Sterling and spend in Sterling there is little reason to hedge unless your overseas interests are such that you need another currency - if you do, maybe you are prepared to ride out the current storm and I would say that all of that is perfectly fine.

As for Sterling getting stronger over time/USD getting weaker and which will be the stronger currency in a couple of years, I certainly don't know the answers and it's almost certain that nobody else on the planet does either. In my previous life, one of my fortes was developing corporate strategies that covered five and ten year time frames. The caveat was always to ensure that clients understood that long term strategies must be reviewed and adjusted in light of current events and at a minimum that means bi-annually - such is the case with the things you are talking about except I might chose to do it very frequently.

[PCA]

OK I am going to something I don't usually do I am going to make a prediction on Stirling.

Currently I/we earn in this currency and have no plans to move money off shore (to say Thailand) simply because the rates are against us.

However I think things will be very different in one year’s time for the following reasons:

The USD is currently VERY, VERY artificially high. This is apparently because there has been a forced selling of assets and the USD has benefited from this.

However IMO when this forced selling comes to an end several factors will underpin its rapid decline.

1) The Chinese appear to be spending their USD at this current high, to fund internal projects on a massive scale.

2) The US has an aging population The Fractional Reserve System currently in place which need exponential amounts of credit to be generated will break down.

3) It appears that there is 'no need to change the way we issue currency' - i.e. debt is still the way to go - It would appear the matter is not discussed much in the media.

4) The US taxpayer who if rational did not become embroiled in this mess now is. They are being forced to bail out those who were irrational, and the system is to continue.

5) US debt seems to be unstoppable

With the flood of this kind of USD into the system there are not many currencies left to go for.

Whilst the UK is also in a similar position it actually is not as big (by orders of magnitude) in terms of its impact on the world economy. As one of the few currencies left I think in one (maybe two years) we will see a sharp increase in its value at which time I will take action to shift the built up resources I will have. BTW IMO this may be the last major improvement in GBP vs. other currencies. After which it will meet the same end as the USD, IMO worthless.

I would appreciate any feedback on my thoughts - especially negative feedback.

If you earn in Sterling and spend in Sterling there is little reason to hedge unless your overseas interests are such that you need another currency - if you do, maybe you are prepared to ride out the current storm and I would say that all of that is perfectly fine.

As for Sterling getting stronger over time/USD getting weaker and which will be the stronger currency in a couple of years, I certainly don't know the answers and it's almost certain that nobody else on the planet does either. In my previous life, one of my fortes was developing corporate strategies that covered five and ten year time frames. The caveat was always to ensure that clients understood that long term strategies must be reviewed and adjusted in light of current events and at a minimum that means bi-annually - such is the case with the things you are talking about except I might chose to do it very frequently.

Well let me tell you this one. Currencies since there existing are manipulated and every single major move is planned by the people with enough influence and money in their pockets. You and me of course can only watch or participate according to our likeness or as far skills go. You can swim side on side with the big fish but should not think currency prices are random. Never ever!

Edited November 19, 2008 by PCA

[chiang mai]

Absolutely agree, case in point is right now watching the 10.00 to 10.30 and 14.00 to 14.30 (GMT) moves on GBP/USD by who knows who they are, the coordinated effort and sheer scale of it is truly impressive .

[lannarebirth]

OK I am going to something I don't usually do I am going to make a prediction on Stirling.

Currently I/we earn in this currency and have no plans to move money off shore (to say Thailand) simply because the rates are against us.

However I think things will be very different in one year's time for the following reasons:

The USD is currently VERY, VERY artificially high. This is apparently because there has been a forced selling of assets and the USD has benefited from this.

That's true, but you have to ask yourself why that is. Do you think those assets are going to be rebought with those same dollars? Remember this is all leverage money and the cost of that margin debt is going up.

However IMO when this forced selling comes to an end several factors will underpin its rapid decline.

1) The Chinese appear to be spending their USD at this current high, to fund internal projects on a massive scale.

If true, why is that bad for $USD?

2) The US has an aging population The Fractional Reserve System currently in place which need exponential amounts of credit to be generated will break down.

The US has massive immigration and rising birthrates, unlike almost every other developed nation.

3) It appears that there is 'no need to change the way we issue currency' - i.e. debt is still the way to go - It would appear the matter is not discussed much in the media.

4) The US taxpayer who if rational did not become embroiled in this mess now is. They are being forced to bail out those who were irrational, and the system is to continue.

Every country will be doing this. Per capita, the US less than many I expect.

5) US debt seems to be unstoppable

Can't argue with that, but don't see how that favors the Pound.

With the flood of this kind of USD into the system there are not many currencies left to go for.

Whilst the UK is also in a similar position it actually is not as big (by orders of magnitude) in terms of its impact on the world economy. As one of the few currencies left I think in one (maybe two years) we will see a sharp increase in its value at which time I will take action to shift the built up resources I will have. BTW IMO this may be the last major improvement in GBP vs. other currencies. After which it will meet the same end as the USD, IMO worthless.

The $USD is FOLLOWING the GBP's valuation arc, not leading it.

I would appreciate any feedback on my thoughts - especially negative feedback.

[chiang mai]

The following article probably explains in part why Sterling has rebounded, BOE has friends in the US, possibly!

http://uk.reuters.com/article/ukPoundRpt/i...J53892620081119

For those not interested in the detail, a major US based financial institution had placed Buy orders at 1.50 and boy, they certainly exercised them this afternoon - let's see if it holds.

[neil324]

The following article probably explains in part why Sterling has rebounded, BOE has friends in the US, possibly!

http://uk.reuters.com/article/ukPoundRpt/i...J53892620081119

For those not interested in the detail, a major US based financial institution had placed Buy orders at 1.50 and boy, they certainly exercised them this afternoon - let's see if it holds.

Yeh but why buy Sterling if its going to tank

Don't agree about the 2.30 spike its more to do with the Dollar itself and can been seen in all cross dollar exchanges.

Edited November 19, 2008 by neil324

[Naam]

600km South of BKK. Pissed off with 1 step forward 2 back. Why couldn't the crisis have waited 2 years, the trees are 5 years old. (Rubber) I need a beer. CM ?

Don't fret. Listen to Jim Rogers on commodities. Even soft commodities. There's a global and massive liquidation of everything going on at the moment, hence technical strength of USD (repatriation of USD not backed by fundamentals) which will continue into 2009 but not much further.

Commodities then to go berserk, so Jim reckons.

Just planted another thousand trees. Well . . . the old woman did.

Interested why are you planting 1000 trees? what trees? or do you just like trees!!

it is less hassle letting the old woman plant a thousand trees than siring with her a thousand sons

[pkrv]

600km South of BKK. Pissed off with 1 step forward 2 back. Why couldn't the crisis have waited 2 years, the trees are 5 years old. (Rubber) I need a beer. CM ?

Don't fret. Listen to Jim Rogers on commodities. Even soft commodities. There's a global and massive liquidation of everything going on at the moment, hence technical strength of USD (repatriation of USD not backed by fundamentals) which will continue into 2009 but not much further.

Commodities then to go berserk, so Jim reckons.

Just planted another thousand trees. Well . . . the old woman did.

Interested why are you planting 1000 trees? what trees? or do you just like trees!!

it is less hassle letting the old woman plant a thousand trees than siring with her a thousand sons

OK naam - I ask you directly how can we as Farang/Farang own farmland in Thailand and if necessary ask for 25% 'usery interest/produce' in repayment for a loan - your wife has her head screwed on BTW. but you knew that anyway ];-)

Edited November 19, 2008 by pkrv

[pkrv]

The following article probably explains in part why Sterling has rebounded, BOE has friends in the US, possibly!

http://uk.reuters.com/article/ukPoundRpt/i...J53892620081119

For those not interested in the detail, a major US based financial institution had placed Buy orders at 1.50 and boy, they certainly exercised them this afternoon - let's see if it holds.

Cable i.e. i guess USDGBP= which does not exist (USD=) trades in 1 yard 1 yrd were utterly insigificant when I was around (and I am no longer, but know the play). If so that is silly, but at what cost and to who?

[lannarebirth]

The following article probably explains in part why Sterling has rebounded, BOE has friends in the US, possibly!

http://uk.reuters.com/article/ukPoundRpt/i...J53892620081119

For those not interested in the detail, a major US based financial institution had placed Buy orders at 1.50 and boy, they certainly exercised them this afternoon - let's see if it holds.

Cable i.e. i guess USDGBP= which does not exist (USD=) trades in 1 yard 1 yrd were utterly insigificant when I was around (and I am no longer, but know the play). If so that is silly, but at what cost and to who?

It would not surprise me to learn that the buyer is none other than that bank that released the report that it would be trading 13% lower soon. That's how it works.

[lannarebirth]

600km South of BKK. Pissed off with 1 step forward 2 back. Why couldn't the crisis have waited 2 years, the trees are 5 years old. (Rubber) I need a beer. CM ?

Don't fret. Listen to Jim Rogers on commodities. Even soft commodities. There's a global and massive liquidation of everything going on at the moment, hence technical strength of USD (repatriation of USD not backed by fundamentals) which will continue into 2009 but not much further.

Commodities then to go berserk, so Jim reckons.

Just planted another thousand trees. Well . . . the old woman did.

Interested why are you planting 1000 trees? what trees? or do you just like trees!!

it is less hassle letting the old woman plant a thousand trees than siring with her a thousand sons

I'm pulling for a little Euro rally here. Don't want your surgeon worrying over his investments or thinking TGIF!

[chiang mai]

Sterling sliding more slowly (1.4750) but nevertheless, sliding it is - BOE has said they are OK with further depreciation of Sterling as long as it doesn't happen too quickly so I guess it's a one way bet now until USD decides it wants to go in reverse. Interesting that BOT appears to have slackened their USD peg and that USD/THB is now at 35.08.

[whiterussian]

7507 yesterday low price

7181 lowest price - oct 10th 2002 (326 points away)

6936 lowest price - oct 28th 1997 (571 points away)

--------- PANIC BELOW HERE ! ----------------

6332 next stop if above reached (1175 points away)

SHORTERS TARGET: 5800 next major support (1707 points away)

[whiterussian]

My pessimisitic crystal balls say dont be suprised if we get 48 baht to the pound in next few weeks, before it bounces (and it had better bounce!):

As for gold, assuming it can actually be physically bought at these prices, im wondering if around HERE -- 714 and below is a good buying point?

Might nip down to Tescos and pick up some bad ass jewellery... but i will wait for the Dow to crumble a bit more and buy if it closes below 6936... If the fan is pestering you for some gold chains ...

Edited November 21, 2008 by UKWEBPRO

[chiang mai]

I'm not too sure about that, it does seem as though the markets are sticking to the broadly 1.50 mark. Two major plays in favor of GBP thus far this week, the first two days ago by JP Morgan at 1.48 and the second today and I paraphrase:

A German account bought EUR and GBP for the 10:00GMT fix, which lifted Cable to 1.4986 highs. The amounts were reportedly in very large size amid a strong equity market rebound.

I think what the markets are saying here is that 1.50 is OK. I see also that USD/THB has improved to 35.10, two cents up, a clear sign that BOT is starting to release it's hold on the Baht.

[lannarebirth]

I'm not too sure about that, it does seem as though the markets are sticking to the broadly 1.50 mark. Two major plays in favor of GBP thus far this week, the first two days ago by JP Morgan at 1.48 and the second today and I paraphrase:

A German account bought EUR and GBP for the 10:00GMT fix, which lifted Cable to 1.4986 highs. The amounts were reportedly in very large size amid a strong equity market rebound.

I think what the markets are saying here is that 1.50 is OK. I see also that USD/THB has improved to 35.10, two cents up, a clear sign that BOT is starting to release it's hold on the Baht.

chiang mai, where do you see the GBP going over the course of the next 2 years versus $USD?

[cmsally]

Decline in US influence - BBC

I think it was pkrv that predicted a rally in the US$ at present and then a slump as it will no longer dominate world markets.

Either this article is predicting that or trying to rally to this cause for some reason. Or maybe the author reads Thai visa.

Or maybe pkrv writes for the BBC

[chiang mai]

I'm not too sure about that, it does seem as though the markets are sticking to the broadly 1.50 mark. Two major plays in favor of GBP thus far this week, the first two days ago by JP Morgan at 1.48 and the second today and I paraphrase:

A German account bought EUR and GBP for the 10:00GMT fix, which lifted Cable to 1.4986 highs. The amounts were reportedly in very large size amid a strong equity market rebound.

I think what the markets are saying here is that 1.50 is OK. I see also that USD/THB has improved to 35.10, two cents up, a clear sign that BOT is starting to release it's hold on the Baht.

chiang mai, where do you see the GBP going over the course of the next 2 years versus $USD?

You are asking me! I'm only a third of the way through my second pass on Jesse's book (really) so how am I supposed to know how these things work? More seriously, I'm going to have to consider the question for a while and answer later - I'm not an economist but I've never studied a view that far forward - I will however answer.

Edited November 21, 2008 by chiang mai

[pkrv]

Decline in US influence - BBC

I think it was pkrv that predicted a rally in the US$ at present and then a slump as it will no longer dominate world markets.

Either this article is predicting that or trying to rally to this cause for some reason. Or maybe the author reads Thai visa.

Or maybe pkrv writes for the BBC

Hhhhhhhaaaaaaaa! In good old fashioned British politician style - don't be a “Silly Billy”. However you did have me in hysterics.

I will keep my bet though THB GBP very, very significantly improved in about 1 year, however I don't have anything riding on this except not moving cash over today ];-)

[lannarebirth]

I'm not too sure about that, it does seem as though the markets are sticking to the broadly 1.50 mark. Two major plays in favor of GBP thus far this week, the first two days ago by JP Morgan at 1.48 and the second today and I paraphrase:

A German account bought EUR and GBP for the 10:00GMT fix, which lifted Cable to 1.4986 highs. The amounts were reportedly in very large size amid a strong equity market rebound.

I think what the markets are saying here is that 1.50 is OK. I see also that USD/THB has improved to 35.10, two cents up, a clear sign that BOT is starting to release it's hold on the Baht.

chiang mai, where do you see the GBP going over the course of the next 2 years versus $USD?

You are asking me! I'm only a third of the way through my second pass on Jesse's book (really) so how am I supposed to know how these things work?

In Jesse's immortal (disregarding for the moment that he committed suicide) words, "be right, sit tight". Don't lose your position. If you have a longer term view, that's your position. Unless you're trading for pips, that daily forex news is pretty worthless.

edit:

Oh, and I would add. Have some kind of mechanism in place to tell you when the view you hold is the wrong one.

Edited November 21, 2008 by lannarebirth

[chiang mai]

I'm not too sure about that, it does seem as though the markets are sticking to the broadly 1.50 mark. Two major plays in favor of GBP thus far this week, the first two days ago by JP Morgan at 1.48 and the second today and I paraphrase:

A German account bought EUR and GBP for the 10:00GMT fix, which lifted Cable to 1.4986 highs. The amounts were reportedly in very large size amid a strong equity market rebound.

I think what the markets are saying here is that 1.50 is OK. I see also that USD/THB has improved to 35.10, two cents up, a clear sign that BOT is starting to release it's hold on the Baht.

chiang mai, where do you see the GBP going over the course of the next 2 years versus $USD?

You are asking me! I'm only a third of the way through my second pass on Jesse's book (really) so how am I supposed to know how these things work?

In Jesse's immortal (disregarding for the moment that he committed suicide) words, "be right, sit tight". Don't lose your position. If you have a longer term view, that's your position. Unless you're trading for pips, that daily forex news is pretty worthless.

edit:

Oh, and I would add. Have some kind of mechanism in place to tell you when the view you hold is the wrong one.

Agreed the daily Forex specific news is not too helpful although it can contain clues that are useful.

As for having a mechanism for early warning: I'm always reminded by the old Rod Stewart song, "the first cut is the cheapest", and I do live by that.

I will reply later on my longer term view.

[neil324]

Anyone got any views regarding the Bot mpc meeting on the 3rd December. Surely their going to cut but do you think it will affect the Baht in anyway. I know BoE are meeting 4th December so the 2 might cancel each other out, but there again was reading upto 100bpc maybe priced into Sterling already.

I land in Thailand on the 1st December and i'm un-decided if to start hammering my 3 Nationwide flexaccounts on arrival to quickly withdraw. I had noticed that the Baht is starting to fall agaisnt the Dollar so if this continues then maybe i'll just withdraw as and when needed. I just wish the 2 was'nt meeting so close together........

[lannarebirth]

I'm not too sure about that, it does seem as though the markets are sticking to the broadly 1.50 mark. Two major plays in favor of GBP thus far this week, the first two days ago by JP Morgan at 1.48 and the second today and I paraphrase:

A German account bought EUR and GBP for the 10:00GMT fix, which lifted Cable to 1.4986 highs. The amounts were reportedly in very large size amid a strong equity market rebound.

I think what the markets are saying here is that 1.50 is OK. I see also that USD/THB has improved to 35.10, two cents up, a clear sign that BOT is starting to release it's hold on the Baht.

chiang mai, where do you see the GBP going over the course of the next 2 years versus $USD?

You are asking me! I'm only a third of the way through my second pass on Jesse's book (really) so how am I supposed to know how these things work?

In Jesse's immortal (disregarding for the moment that he committed suicide) words, "be right, sit tight". Don't lose your position. If you have a longer term view, that's your position. Unless you're trading for pips, that daily forex news is pretty worthless.

edit:

Oh, and I would add. Have some kind of mechanism in place to tell you when the view you hold is the wrong one.

Agreed the daily Forex specific news is not too helpful although it can contain clues that are useful.

As for having a mechanism for early warning: I'm always reminded by the old Rod Stewart song, "the first cut is the cheapest", and I do live by that.

I will reply later on my longer term view.

OK, I was only asking to see if you knew what your view was. If it helps to define that by sharing, then go ahead.

[chiang mai]

Anyone got any views regarding the Bot mpc meeting on the 3rd December. Surely their going to cut but do you think it will affect the Baht in anyway. I know BoE are meeting 4th December so the 2 might cancel each other out, but there again was reading upto 100bpc maybe priced into Sterling already.

I land in Thailand on the 1st December and i'm un-decided if to start hammering my 3 Nationwide flexaccounts on arrival to quickly withdraw. I had noticed that the Baht is starting to fall agaisnt the Dollar so if this continues then maybe i'll just withdraw as and when needed. I just wish the 2 was'nt meeting so close together........

You're going to worry yourself to death if you're not careful, relax for goodness sake.

[chiang mai]

I'm not too sure about that, it does seem as though the markets are sticking to the broadly 1.50 mark. Two major plays in favor of GBP thus far this week, the first two days ago by JP Morgan at 1.48 and the second today and I paraphrase:

A German account bought EUR and GBP for the 10:00GMT fix, which lifted Cable to 1.4986 highs. The amounts were reportedly in very large size amid a strong equity market rebound.

I think what the markets are saying here is that 1.50 is OK. I see also that USD/THB has improved to 35.10, two cents up, a clear sign that BOT is starting to release it's hold on the Baht.

chiang mai, where do you see the GBP going over the course of the next 2 years versus $USD?

You are asking me! I'm only a third of the way through my second pass on Jesse's book (really) so how am I supposed to know how these things work?

In Jesse's immortal (disregarding for the moment that he committed suicide) words, "be right, sit tight". Don't lose your position. If you have a longer term view, that's your position. Unless you're trading for pips, that daily forex news is pretty worthless.

edit:

Oh, and I would add. Have some kind of mechanism in place to tell you when the view you hold is the wrong one.

Agreed the daily Forex specific news is not too helpful although it can contain clues that are useful.

As for having a mechanism for early warning: I'm always reminded by the old Rod Stewart song, "the first cut is the cheapest", and I do live by that.

I will reply later on my longer term view.

OK, I was only asking to see if you knew what your view was. If it helps to define that by sharing, then go ahead.

I've thought about your question and even though I knew I didn't have a sensible answer at the time you asked, I've thought about it nevertheless, but I still don't know! But since I have sold all my GBP/USD positions it's not that vital in my book currently that I try to find an answer and it at least puts me in good company since nobody else knows either.

What I see happening in the short term is that GBP/USD may continue to fall but I can't see it going too much further since most of the bad news is already priced in and the falls to date have been quite steep - it is possible that we are close to or even at bottom but the markets will confirm this as we move forward. What I do know is that GBP/USD is unlikely to reach parity or even close to it. Historically the ratio between GBP and USD has rested for many years in a range between 1.40 and 1.80 and only extreme events have pushed it outside of that range and even then only fairly briefly. It was for those reasons that I tried in August to convince readers to hedge into USD and it is why I posted a week ago stating that I thought 1.50 was some form of base. Much more than those things, I haven't got a clue, sorry!

[churchill]

Manduca on Bloomberg - Bullish on the pound from these levels

http://www.bloomberg.com/avp/avp.htm?clipS...cnQUIb86Eg0.asf

[chiang mai]

One other thing I think I see is that Monday is likely to be a watershed when the UK announces its financial stimulus plan. If the plan is viewed favorably by the markets then Sterling could well rebound, if it is not then Sterling will almost certainly take a substantial fall, could be a significant turning point - likely this explains in part the large purchases of GBP that were made at around 1.50 earlier this week by JP Morgan and a German bank. Anyone fancy a flutter? It seems to me that Gordo, the UK PM, has recovered a lot of his lost credibility during the past two months as a result of his handling of the UK crisis and his involvement in the global economic picture, quite right too since he was Chancellor for the preceding ten years so he must know a trick or two. OK so you all think he's a prat and maybe he is, but if he does well on Monday he could remain as PM for quite some time. So, poll time (without the poll) Sterling up or down on Monday?

Edited November 22, 2008 by chiang mai

[cmsally]

One other thing I think I see is that Monday is likely to be a watershed when the UK announces its financial stimulus plan. If the plan is viewed favorably by the markets then Sterling could well rebound, if it is not then Sterling will almost certainly take a substantial fall, could be a significant turning point - likely this explains in part the large purchases of GBP that were made at around 1.50 earlier this week by JP Morgan and a German bank. Anyone fancy a flutter? It seems to me that Gordo, the UK PM, has recovered a lot of his lost credibility during the past two months as a result of his handling of the UK crisis and his involvement in the global economic picture, quite right too since he was Chancellor for the preceding ten years so he must know a trick or two. OK so you all think he's a prat and maybe he is, but if he does well on Monday he could remain as PM for quite some time. So, poll time (without the poll) Sterling up or down on Monday?

I'll wager Sterling up; but still think Gordy is a prat and only doing it to save his skin. How can it be good for long term if it leaves UK with 100 billion GBP debt and higher taxes in future (but of course not now).

BBC

[chiang mai]

One other thing I think I see is that Monday is likely to be a watershed when the UK announces its financial stimulus plan. If the plan is viewed favorably by the markets then Sterling could well rebound, if it is not then Sterling will almost certainly take a substantial fall, could be a significant turning point - likely this explains in part the large purchases of GBP that were made at around 1.50 earlier this week by JP Morgan and a German bank. Anyone fancy a flutter? It seems to me that Gordo, the UK PM, has recovered a lot of his lost credibility during the past two months as a result of his handling of the UK crisis and his involvement in the global economic picture, quite right too since he was Chancellor for the preceding ten years so he must know a trick or two. OK so you all think he's a prat and maybe he is, but if he does well on Monday he could remain as PM for quite some time. So, poll time (without the poll) Sterling up or down on Monday?

I'll wager Sterling up; but still think Gordy is a prat and only doing it to save his skin. How can it be good for long term if it leaves UK with 100 billion GBP debt and higher taxes in future (but of course not now).

BBC

So on that basis, why Sterling up? Hadn't seen the BBC article before but now that I have I guess everyone is thinking the same thing. Question is, can Gordon pull off what the US has failed to do thus far.

Edited November 22, 2008 by chiang mai

[Cobalt60]

If I was Gord I too would hock the country to the hilt, sort out the short term problems and gain a little popularity, knowing reasonably well, that I will loose the next election.

I would then sit back and watch the next government struggle having to make massively un popular spending cuts and tax rises to pay for the fun I have had and think, not long before we are back again.