Fall Of The Brittish Pound

[dee123]

Tax loopholes for the mega rich.BIG company monopolys.Selling off all of our manufacturing assets.Not investing enough in green technologys.VOTE LIBERAL OR GREEN........TIP for Thaivisa.com members Peter Hain to make challenge to Gordon Brown with in 1 month.!!!!!

[fiddlehead]

just saw the news on the BKK post that the Thai government is going to borrow 270 BLN Baht.

That oughta knock the value of the baht down a little anyway.

[dee123]

LONDON (Reuters) - Currency markets have been extremely volatile in recent months but the government does not target exchange rates, Chancellor Alistair Darling said on Tuesday.

The pound has fallen sharply against most major currencies in the last year, raising complaints from countries like France, who are worried about their loss of competitiveness, that Britain needs to do something to arrest the decline.

One G7 source has even told Reuters that sterling weakness could become an issue at next week's meeting of G7 finance ministers and central bankers in Rome.

Darling made clear on Tuesday that the government had no plans to meddle with its exchange rate, recalling that past attempts at trying to manipulate currencies had failed.

"We've seen extraordinary volatility in markets generally and in the currency markets in the last few months," Darling told a Lords committee.

"Our policy is to target inflation, it's not to target the currency. That has been tried in the past. Our inflation target is two percent. And that will remain the position as I've said on a number of occasions in the past."

Few expect any change to the language on exchange rates when the G7 issue their final statement after their Rome meeting on Feb 14, but euro group sources told Reuters last week that everyone was concerned by the recent volatility.

"This (volatility) will warrant a good discussion at the G7 because everyone is concerned about this," one of the euro group sources said.

another ridiculus scenario is while all us British tosspots were thinking fantastic! were almost third richest country in the world because of our Banking system countrys like Spain and others were placed well beneath were receiving £ billions in European grants ect and then all of a sudden everyone withdraws their cash and..................and............???? GORDON COME HERE I WANT A WORD WITH YOU

[pothai]

If i " just came by an exchange booth" today showing those rates i would keep on going by !!!!

I see rates of (an average) just below 49/GBP

And yes, i also remember it at around 32-35 like another poster did

Penkoprod

Thats because the Baht was strong and then devalued after the crash

[lounger]

What have you been doing....hiding under a rock? Did you really have to bring this up.....they will all be in here in no time, having a good old pommie winge about it.

Wonderful blog.....you're right, all the :

Last time I remember..

I don't believe it..

My last ATM visit..

I blame...

not to mention the bent ear brigade:

the fookits

twatan cants

My view is:nIts the old brigade they close the airports, let the baht climb, make visa access more difficult....

havent seen any recent news about the baht devaluing. Which is interesting as I don't think the Thai reserves are that strong , last record was down to about 50 billion. Personally I am watching the old brigade....they like putting pressure on. look at the lot saying the Suvarnabhumi episode didn't hurt the thai economy. How does that mesh with Exports 3.5 billion baht loss per day, Hotels, Thai air, now the hospitals are screaming. yup the old thai farts are sitting in their gilded mansions watching and enjoying the mess...while the governments try to play the middle path

and the oips will come out and say what abart me...

[Naam]

havent seen any recent news about the baht devaluing. Which is interesting as I don't think the Thai reserves are that strong , last record was down to about 50 billion.

you are mixing up forex reserves of the Bank of Thailand (presently in excess of 100 billion dollars) and government coffers in which are 52 billion Baht

[chiang mai]

havent seen any recent news about the baht devaluing. Which is interesting as I don't think the Thai reserves are that strong , last record was down to about 50 billion.

you are mixing up forex reserves of the Bank of Thailand (presently in excess of 100 billion dollars) and government coffers in which are 52 billion Baht

And just to put those numbers into perspective, UK foreign reserves currently stand at around 17 billion!

[JimsKnight]

£ or $ ???

[theoldgit]

havent seen any recent news about the baht devaluing. Which is interesting as I don't think the Thai reserves are that strong

I haven't seen any news on the Baht devaluing though today's Bangkok Post quotes the Swiss bank UBS as saying that the Thai Baht may slide 5.6% by year-end as the country's economy shrinks at the fastest pace in a decade deterring investmentby global funds. Suppose that means that the GBP will slide even further making even more difficult for us poor Brits to eek out our pensions.

[chiang mai]

havent seen any recent news about the baht devaluing. Which is interesting as I don't think the Thai reserves are that strong

I haven't seen any news on the Baht devaluing though today's Bangkok Post quotes the Swiss bank UBS as saying that the Thai Baht may slide 5.6% by year-end as the country's economy shrinks at the fastest pace in a decade deterring investmentby global funds. Suppose that means that the GBP will slide even further making even more difficult for us poor Brits to eek out our pensions.

The current BOT policy is to ensure there are no major fluctuations in the Baht exchange rate hence the value of the Baht against USD has fallen only 5% (ish) in the past year. If the Baht falls a further 5% during 2009 that will be good news for Thailand I reckon but of course there are other variables involved in all of this.

[chiang mai]

£ or $ ???

GBP as I recall, although I cannot immediately find the web site again that show current numbers. Where ever the site is it shows current holding at 24 bill less forward obligations that net at 17 bill. Feel free to have a search and I will do the same!

http://www.bankofengland.co.uk/markets/for...t_framework.htm

[Naam]

havent seen any recent news about the baht devaluing. Which is interesting as I don't think the Thai reserves are that strong

I haven't seen any news on the Baht devaluing though today's Bangkok Post quotes the Swiss bank UBS as saying that the Thai Baht may slide 5.6% by year-end as the country's economy shrinks at the fastest pace in a decade deterring investmentby global funds. Suppose that means that the GBP will slide even further making even more difficult for us poor Brits to eek out our pensions.

what is the reason for your assumption?

[theoldgit]

what is the reason for your assumption?

No other reason than the pound seems to go down whatever happens, though just to prove me wrong it went up ever so slightly after the latest Bank of England rate cut.

[jesimps]

It now seems clear policy by the government and the Boe to drive the price of sterling down even lower, every time the pound makes a slight recovery the authorities quickly step in to knock it back again. It can't be put down to stupidy that they are making so many utterences. Merv King came out with another gem yesterday about what to do if we exhaust the interest rate option. In view of this fact, I feel that it is about time that I hedged my sterling a bit more. I already hold some gold, USD, EUR and JPY, but feel that I still have too many UK pounds. Putting national leanings aside, where to the majority of us on here feel is the best home for our life's savings at this moment in time.

[chiang mai]

Every time Mervyn speaks, the Pound falls. Mervyn, be a good lad and shut up, please!

[12DrinkMore]

It now seems clear policy by the government and the Boe to drive the price of sterling down even lower, every time the pound makes a slight recovery the authorities quickly step in to knock it back again. It can't be put down to stupidy that they are making so many utterences. Merv King came out with another gem yesterday about what to do if we exhaust the interest rate option. In view of this fact, I feel that it is about time that I hedged my sterling a bit more. I already hold some gold, USD, EUR and JPY, but feel that I still have too many UK pounds. Putting national leanings aside, where to the majority of us on here feel is the best home for our life's savings at this moment in time.

National leanings? Hah! I have nothing left for the UK. The place is full of arrogance and stupidity. Why else would anyone carry on for eight years thinking they are the greatest because the house prices were rising at a rate faster than they could earn money working? And based on that spend money on holidays, villas in Spain and new cars, which could not possibly have been affordable otherwise.

The GBP is heading towards parity with the USD. There is no question about it anymore, it is only a matter of time.

The Great should be remove from the name britain, in the future to be written in lower case, it will be the poorest man of Europe. Who is going to rescue it? IMF? They have no cash left. The ECB? They will be more interested in saving their own economies, they are already well pi55ed of with Brown's devaluation of the GBP and constant refusal to join the Euro, which is now no longer an option, unless they make a very special case. USA? No way, why should they?

So tell me, where is the UK going to get the money to keep going and buy essential food imports?

I have already moved a lot out of the GBP, taking a massive hit, and tomorrow will see the last letter going off to move all the rest of my GBPs that I can access, out of GBP's.

The only thing that anyone can be sure of, is that we will all be a hel_l of a lot poorer in six months than we are now.

[chiang mai]

It now seems clear policy by the government and the Boe to drive the price of sterling down even lower, every time the pound makes a slight recovery the authorities quickly step in to knock it back again. It can't be put down to stupidy that they are making so many utterences. Merv King came out with another gem yesterday about what to do if we exhaust the interest rate option. In view of this fact, I feel that it is about time that I hedged my sterling a bit more. I already hold some gold, USD, EUR and JPY, but feel that I still have too many UK pounds. Putting national leanings aside, where to the majority of us on here feel is the best home for our life's savings at this moment in time.

National leanings? Hah! I have nothing left for the UK. The place is full of arrogance and stupidity. Why else would anyone carry on for eight years thinking they are the greatest because the house prices were rising at a rate faster than they could earn money working? And based on that spend money on holidays, villas in Spain and new cars, which could not possibly have been affordable otherwise.

The GBP is heading towards parity with the USD. There is no question about it anymore, it is only a matter of time.

The Great should be remove from the name britain, in the future to be written in lower case, it will be the poorest man of Europe. Who is going to rescue it? IMF? They have no cash left. The ECB? They will be more interested in saving their own economies, they are already well pi55ed of with Brown's devaluation of the GBP and constant refusal to join the Euro, which is now no longer an option, unless they make a very special case. USA? No way, why should they?

So tell me, where is the UK going to get the money to keep going and buy essential food imports?

I have already moved a lot out of the GBP, taking a massive hit, and tomorrow will see the last letter going off to move all the rest of my GBPs that I can access, out of GBP's.

The only thing that anyone can be sure of, is that we will all be a hel_l of a lot poorer in six months than we are now.

Two points:

Moving out of Sterling at this late stage will, I think, cost you money, maybe you should revisit that idea.

Secondly, I, like you and very disappointed with events and the way the governments over time have handles the country's affairs and created this mask of being in control when clearly they have been inept and clueless, it's all a very sad indictment of what once was a great country. But I sense that once we get over the worst of all of this, things will change for the better so I wouldn't give up on the UK entirely at this stage, normal service is likely to be resumed at some point.

[Lancelot]

Interesting that a topic is started about the British Pound and within one page of posts ends up discussing American politics.

Yup, those evil Americans again...

[12DrinkMore]

Two points:

Moving out of Sterling at this late stage will, I think, cost you money, maybe you should revisit that idea.

I have been moving out for eighteen months now, not many GBPs left.

To reverse the point, do you think it is a good time to move back into the GBP? :D

Secondly, I, like you and very disappointed with events and the way the governments over time have handles the country's affairs and created this mask of being in control when clearly they have been inept and clueless, it's all a very sad indictment of what once was a great country. But I sense that once we get over the worst of all of this, things will change for the better so I wouldn't give up on the UK entirely at this stage, normal service is likely to be resumed at some point.

There are several problems.

And the main one is that the same inept twits are still running the show, and still making losses and still demanding bonuses on top of huge salaries.

I, and indeed a lot of my colleagues, gave up on the UK a long time ago. But until recently the GBP was stable and provided a decent rate of income, so I kept the majority of my money in the UK. Brown is set to produce records

- lowest interest rates since the BoE started up

- first government to fire up the printing press

- largest government deficit in the history of the UK (and that after 7 years of growth, during which the idiot still made a loss)

- Biggest peace time contraction in the economy

- greatest ever depression

Yes, certainly at some point it will stabilise, but until the banking industry has been completely restructured there can only be more bad news. Instead of pumping trillions down the urinal, he should immediately enact banking laws to completely separate commercial banking and investment banking, starting with the nationalised banks. This would cleanly separate the toxic rubbish from the straight forward "traditional banking" of deposits, mortgages and commercial loans and allow the newly formed government owned commercial banks to keep the economy going.

As the toxic investment banking will be concentrated in a small area of the city, I suggest a small controlled nuclear explosion would be useful in sorting them out. Please give me that job, can I press the button???

[JimsKnight]

Fair enough, but don't put all your eggs in one basket.

Otherwise it might be a case of: Out of the frying pan...

[eddiemonster]

I have already moved a lot out of the GBP, taking a massive hit, and tomorrow will see the last letter going off to move all the rest of my GBPs that I can access, out of GBP's.

The only thing that anyone can be sure of, is that we will all be a hel_l of a lot poorer in six months than we are now.

I don't know about all of us being poorer but you sure as hel_l will be . And you complain about "inept twits"?

[chiang mai]

Two points:

Moving out of Sterling at this late stage will, I think, cost you money, maybe you should revisit that idea.

I have been moving out for eighteen months now, not many GBPs left.

To reverse the point, do you think it is a good time to move back into the GBP? :D

Secondly, I, like you and very disappointed with events and the way the governments over time have handles the country's affairs and created this mask of being in control when clearly they have been inept and clueless, it's all a very sad indictment of what once was a great country. But I sense that once we get over the worst of all of this, things will change for the better so I wouldn't give up on the UK entirely at this stage, normal service is likely to be resumed at some point.

There are several problems.

And the main one is that the same inept twits are still running the show, and still making losses and still demanding bonuses on top of huge salaries.

I, and indeed a lot of my colleagues, gave up on the UK a long time ago. But until recently the GBP was stable and provided a decent rate of income, so I kept the majority of my money in the UK. Brown is set to produce records

- lowest interest rates since the BoE started up

- first government to fire up the printing press

- largest government deficit in the history of the UK (and that after 7 years of growth, during which the idiot still made a loss)

- Biggest peace time contraction in the economy

- greatest ever depression

Yes, certainly at some point it will stabilise, but until the banking industry has been completely restructured there can only be more bad news. Instead of pumping trillions down the urinal, he should immediately enact banking laws to completely separate commercial banking and investment banking, starting with the nationalised banks. This would cleanly separate the toxic rubbish from the straight forward "traditional banking" of deposits, mortgages and commercial loans and allow the newly formed government owned commercial banks to keep the economy going.

As the toxic investment banking will be concentrated in a small area of the city, I suggest a small controlled nuclear explosion would be useful in sorting them out. Please give me that job, can I press the button???

Well I have moved that part of my holdings that I designate as UK money back into Sterling and I did so at USD 1.40. Each to their own I guess but I see Sterling moving upwards at some point and I also see the yields increasing in the medium term.

[12DrinkMore]

I don't know about all of us being poorer but you sure as hel_l will be . And you complain about "inept twits"?

I guess that in the next twelve months we will all know a whole lot more. If I have been an inept twit, then I will be happy to admit it and say that I have made a very big mistake and it has cost me personally a lot of money. And that I, solely, am responsible.

The inept twit of them all is Brown. Nobody can possibly dispute this. We had some eight years of constant economic growth in the UK. Brown, as Chancellor, failed to

- recognise it was all based on a massive expansion of cheap credit

- make ends meet. He was running a deficit budget every year.

- suppress the ballooning house prices, even though the IMF warned him, as well as many others, and even though it was obviously out of control

- accept any responsibility, putting it all in the hands of the Americans, the bankers, indeed anybody except himself

So, I think it is unfair to call me an inept twit at this stage regarding my current decisions, as it is based solely on your own forecasts of the future of the UK and the GBP against my ideas. Wait for a year and then call me it... :D

However, I am ready to accept that I am an utterly inept twit because of my huge mistake to not move out of the GBP when it rose to USD 2. I also thought that it was too high, but Jesus, did it fall quickly and I was so inept that I kept thinking, "this is the bottom" and it wasn't.