Reply to: Pound under attack as debt worries grow

[TimberWolf]

Good luck - it took me very long time to open such accounts (for business), onshore.

I've just created an International Personal Account with First Direct over the phone. It's what they describe as a holding account, which means no cheque book or credit card - transactions have to be done over the phone. I bought £20K of USD at 1.484 giving $29,680. Should have done it last week I expect it's a crappy exchange rate too, but that's small potatoes the way the pound could fall.

[DimPrawn]

‘Expect a test of 1.40 within a month and, as the global landscape turns ever more ugly on the back of deflation and sovereign debt concerns, a continuing flight to the US Dollar, taking Sterling down below 1.20 by the summer,’ Beecroft said.
...[/I]

Where is the "rubbing hands with glee" smiley?

[SantaClaus]

Read and weep, or enjoy!

Pound falls on growing fears of hung parliament
http://www.citywire.co.uk/profession...aspx?ID=385109

...
Nick Beecroft, senior foreign exchange consultant at Saxo Bank, warned this could be the start of ‘what can justifiably be called the beginnings of Sterling’s collapse’.

‘Expect a test of 1.40 within a month and, as the global landscape turns ever more ugly on the back of deflation and sovereign debt concerns, a continuing flight to the US Dollar, taking Sterling down below 1.20 by the summer,’ Beecroft said.
...

[gadgetman]

1 GBP = 1.66068 AUD

[Board Game Geek]

One of the most insightful views on the topic can be found in this blog http://hairyarsedbloke.blogspot.com/...inflation.html It's HAB's blog so contains strong language

foul potty mouthed

[Gonzo]

“My strong view is the government is trying to create inflation and devalue the currency.”

They are trying to devalue debts with inflation created by printing money, not a good idea if you are a net importer...

One of the most insightful views on the topic can be found in this blog http://hairyarsedbloke.blogspot.com/...inflation.html It's HAB's blog so contains strong language.

[Gonzo]

Does the UK banking system do anything in the background when the currency slides too quickly? By buying Guilts, Bonds, currency or some-such?

They don't need to. The last experiment with fixed exchange rates in the UK was abandoned in 1992.

The Bank of England does not have deep enough pockets to buck the market.

[Gonzo]

I imagine, as I've read elsewhere, that once you start printing money, it's hard to stop.

I predict that in a few years time people will look back and ask

What were they thinking? Why did they think that it would be different this time?

[AtW]

Good luck - it took me very long time to open such accounts (for business), onshore.

[TimberWolf]

Have you tried to open bank account in USD/EUR? Very painful and long: one of a few good things in Russian bank is that such accounts are trivially opened. Granted you can't take money easily out of that country though

Not yet. I had planned to today, but the early slide made me delay. I plan to tomorrow and hoped it would be easy with my existing bank (which they intimate). I did give up creating one with a bank I don't bank with though, they wanted pay slips and all sorts of stuff. I'll find out tomorrow, because I'm going to move into safer foreign currency whatever the market does.

[AtW]

What's to stop UK people saying, I don't want to be paid in Sterling, pay me my salary in Dollars into my Dollar denominated account. Is that illegal?

Have you tried to open bank account in USD/EUR? Very painful and long: one of a few good things in Russian bank is that such accounts are trivially opened. Granted you can't take money easily out of that country though

[TimberWolf]

What's to stop UK people saying, I don't want to be paid in Sterling, pay me my salary in Dollars into my Dollar denominated account. Is that illegal?

Come to think of it, it would be impossible to work out what his salary would be in Dollars and the UK company wouldn't be able to afford to pay him in Dollars anyway.

[TimberWolf]

This stop comes naturally once you can't afford to pay for money paper using money you've just printed

What's to stop UK people saying, I don't want to be paid in Sterling, pay me my salary in Dollars into my Dollar denominated account. Is that illegal?

[AtW]

once you start printing money, it's hard to stop.

This stop comes naturally once you can't afford to pay for money paper using money you've just printed

[TimberWolf]

“My strong view is the government is trying to create inflation and devalue the currency.”

They are trying to devalue debts with inflation created by printing money, not a good idea if you are a net importer...

Perhaps Gordon thought the Tories were going to win the next election and the consequences and blame would fall into their lap? I imagine, as I've read elsewhere, that once you start printing money, it's hard to stop.