How about a sterling - euro chart?
Get ready for dollar par in a few days, and then a journey below. I am seeing sterling hitting US .70 cents. Get out of sterling if you can.
Its the fiscal deficit wot did it....
And thus, quietly, Gold hits a high in Sterling today (£612.30). If Approximity are to be believed, higher than anything in 2007 or 2008; though in real terms way short of the peaks achieved in early 1980's.All the western currencies are on the slide and comparing between them just indicates which has recently let some bad news slip. It is all disorienting and I keep waiting for the dollar to nose dive which has yet to happen to any great extent. If and when confidence in the dollar declines, serious trouble will be afoot given that it is the worlds reserve currency. Countries and companies will rush to get their reserves out and it won't be pretty.So are we, in the UK, a little ahead of the Americans or a little behind the Icelandics?
Parity, here we come....
I have to say I'm wondering if my theory behind the "pound is already near its ultimate low" position is sound.Mostly, every problem the UK has the Eurozone and Japan have in spades so how come their currencies aren't suffering? I suspect its because they are behind us on the credit cycle, but I wish I could be intellectually detached from the whole thing, rather than having most of my savings in sterling
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