Reply to: 1€ = 97p and falling

[Gonzo]

I think pound got devalued more after pre-budget report - I am not sure they wanted this to happen as this is bound to push inflation next year, maybe that's exactly what they want to devalue all the debt? Playing with fire IMO - pound may never recover its position against euro, though this would make joining eurozone easier.

Politically easier possibly, but there is the spending and debt splurge to consider.

Based on their own projections in the pre-budget-report, Britain is not now going to meet the convergence criteria on keeping the government deficit below 3% of GDP until 2014, so perhaps not.

If their projections prove to be too optimistic then they are going to blow the requirement to keep total government debt below 60% of GDP by 2014 too.

[AtW]

Have you tried giving away lotto numbers the next day?

Again you are talking about profits that are of no interest to me when I post here - you should talk to personal financial advisor for advice that may or may not make you profit, I don't have such goals and never intended to have them.

[Francko]

No - I don't like giving anyone any advice at all, especially if it seems "obvious" - all I do when I talk about euro and other on here is expressing my own personal view, not advising anyone.



When I post my views I am not concerned about profits.

Have you tried giving away lotto numbers the next day?

[AtW]

Yes, you just like to give advice on the obvious.

No - I don't like giving anyone any advice at all, especially if it seems "obvious" - all I do when I talk about euro and other on here is expressing my own personal view, not advising anyone.

When even the taxi driver (and atw) start talking about it, it means it's already too late to profit from that.

When I post my views I am not concerned about profits.

[Francko]

I want to make it clear that at no time I advised anyone to buy euros.

Yes, you just like to give advice on the obvious. All you did since you are on this board is to state the obvious. It will rain. Of course it will rain, sooner or later. What is difficult is to guess when and how long. Now I am going to behave like you. The pound will go up again. Call me an expert. That article last time was very good. When even the taxi driver (and atw) start talking about it, it means it's already too late to profit from that.

[Mich the Tester]

I want to make it clear that at no time I advised anyone to buy euros.

I have. I advised a recent visitor from the Antipodes to buy some euros before he got on the plane in case the bank was shut when he arrived in NL.

[AtW]

Guys... if you all know this and you want to rely on atw super-expert advice, why not buying now euros and sell them again in a few months with a 20-30% return?

I want to make it clear that at no time I advised anyone to buy euros.

[Francko]

Guys... if you all know this and you want to rely on atw super-expert advice, why not buying now euros and sell them again in a few months with a 20-30% return?

[bobhope]

0.973 - it's like watching a car crash now.

[AtW]

But it does frequently refer to the devaluation of the pound that had already happened as one of the measures that will end the recession.

I think pound got devalued more after pre-budget report - I am not sure they wanted this to happen as this is bound to push inflation next year, maybe that's exactly what they want to devalue all the debt? Playing with fire IMO - pound may never recover its position against euro, though this would make joining eurozone easier.

[Gonzo]

I am not sure to be honest - this would imply they know what they are doing and I really doubt that.

It never says that it is a deliberately planned result! But it does frequently refer to the devaluation of the pound that had already happened as one of the measures that will end the recession.

[AtW]

money has been raised largely from gilts and bonds.

I'd love to see up to date stats on those - who would want to buy assets that so quickly devalue? My guess is that they have issues with selling debt at the moment and will continue to have - quantitative easy seems the way to go, so market responds with pound falling even further, just wait till inflation kicks in and importers raise prices...

[Solidec]

That's quite optimistic, if it weren't for the government printing money then it'd have already gone south.

huh? Quantitative Easing (what a ridiculous cop-out term for kick starting the printing presses) hasn't kicked in yet, money has been raised largely from gilts and bonds.

Once BoE starts printing money the pound will indeed go into freefall.

[AtW]

the devaluation of the pound is a desired result.

I am not sure to be honest - this would imply they know what they are doing and I really doubt that.

[Gonzo]

If you were really sad like me, you would have read the whole of the Chancellor's pre-budget-report from last month and realised that the devaluation of the pound is a desired result.