English Pound collapsing

[bloody_bloo]

I'm with the chicken. No metal. You can't eat it.

The world is overcrowded, there's to much greed at handful bankers and stock gamblers, the "system" is too wretched to last any much longer.

Lets hit the mountains find a spot to sit and watch.

 

[jp]

Economic indicators are looking good? Hahahahahahahahahahaa, ROFLMAO. What reality are you living in?

The reality where you follow boring things like news, analysis and listen to experts instead of just making shit up and wallowing contentedly in your ignorance.

 

[Moonwitch]

It is hard to say how soon the pound will collapse. Inevitably I think it will and the UK will join the euro but it has another couple of years left. The dollar is another currency that will collapse, not sure how soon though. Before we get a global currency won´t we get the regional currencies? Maybe if the euro fails the world will go straight to a global currency.

Gold is always a wise investment...

 

[igor]

I wouldn't necessarily recommend you base your financial decisions based on what is posted on BAexpats!

The reality where you follow boring things like news, analysis and listen to experts instead of just making shit up and wallowing contentedly in your ignorance.

The reality is that in principle there is no source of information that you can follow and make money on the markets in a guaranteed way. It is the nature of the beast. Listening to professional opinions just gives you worm and fuzzy feeling that you are making informed decisions. Besides, for every professional opinion there is always an opposite one, that is nonetheless also very professional

I don't quite understand "paper currencies go down, therefore you gotta buy GOLD!!!" logic. Things have changed in last few hundred years. Gold is a complex instrument. If you strongly believe that the pound is doomed, get a Forex account and short pound. Put your money where your word is.

 

[jp]

Whilst nobody can claim to be right all the time, it doesn't follow that all opinions are equal.

IMF predicts 1.7% growth in 2010, and 2.7% growth in 2011, when it will outstrip both the US & the euro area. Or you could run for the hills and stock up on corned beef.

So for what its worth, thought this is a fairly good analysis of whats currently happening with the pound:
http://www.economist.com/world/britain/displayStory.cfm?story_id=15596183

 

[orwellian]

The reality where you follow boring things like news, analysis and listen to experts instead of just making shit up and wallowing contentedly in your ignorance.

In my ignorance? Who's the one who said "Economic indicators are looking good"? We all listen to experts, but we choose to believe in different ones. What I wanna know, how did you come up with that opinion?

I don't quite understand "paper currencies go down, therefore you gotta buy GOLD!!!" logic. Things have changed in last few hundred years. Gold is a complex instrument. If you strongly believe that the pound is doomed, get a Forex account and short pound. Put your money where your word is.

It's quite simple Igor, it's called inflation and it's happening to most paper currencies right now. That's why you see commodities, like gold, going up. Or you can also say that commodities stay put and paper currencies are going down. That's why I put my money in commodities, and I chose gold because I am paranoid and want to physically hold on to it.
I never said that the pound is doomed. It might even go up against the euro and dollar like jp said. That being said it does not mean that "Economic indicators are looking good" for England, nor that it's not heading down the path of inflation too.

IMF predicts 1.7% growth in 2010, and 2.7% growth in 2011, when it will outstrip both the US & the euro area. Or you could run for the hills and stock up on corned beef.

When you borrow money growth goes up too. That's why the U.S economy grew since the dot come bubble burst when in reality it should have shrunk. They chose to bankrupt the country instead of allowing the market to fix itself (recession).

 

[jp]

Who's the one who said "Economic indicators are looking good"? We all listen to experts, but we choose to believe in different ones. What I wanna know, how did you come up with that opinion?

Well, there's the actual indicators themselves:
http://www.economist.com/markets/indicators/

Then there's the IMF forecast for the UK for 2010 and 2011.

Plus there was the 28 independent forecasts from January that thre treasury assembled, which on average indicated that national output would increase by 1.4% this year.

There's other things - rises in consumer confidence, growth in service sector etc.

But I'm guessing you know all about all this, and have cogent arguments why all these indicators are invalid.

 

[redrum]

I wouldn't necessarily recommend you base your financial decisions based on what is posted on BAexpats! In the past 3 years, there have been some..interesting assertions made. The complete collapse of the dollar, the going under of the Euro, the rise of a new global currency, etc. - all were predicted and guaranteed by posters here. As of yet, none have happened

That being said, having a diverse portfolio is never a bad idea. But I CERTAINLY wouldn't recommend you put it in pesos. That would be jumping from the frying pan into a huge fire. There is a reason no one here keeps their savings in pesos.

Citygirl I think you're missing the big picture. Let's look at the long term, not the short term. And by long term I mean less than 5 years.

Throughout history all fiat currencies have at one point failed i.e. there has either been a major devaluation from over printing or the currency was scrapped altogether. We need only look at argentina or zimbabwe for the most recent examples of this. It happens all the time. So I'm not sure why people insist on believing that it can't happen to the world's major currencies. It happened to Rome. It happened to great Britain when it was the world's reserve currency. And it will happen to the united states.

We're living in a time right now where there is more fiat currency in existence than at any point in history. The US debt alone is greater than all the money in existence. The consequences of printing too much paper are baked in the cake. It is only a matter of time before they take effect.

Of course nobody can predict the future. And of course you shouldn't take your financial advice from a forum. But take the advice and conduct your own research. There is nothing wrong with preparing for what might happen, what could happen and what is LIKELY to happen.

This is why I recommend gold because gold is real money. Gold has been money for 5,000 years. Gold is one of the best ways to preserve wealth. Gold is currently being re monetized by the central banks. We are in a gold bull market. Gold has increased in value 9 years in a row on its way to a 10th. The West obviously has far less experience with gold and doesn't fully understand what gold is. Travel to the East and you will see that gold and its store of value is part of everyday culture and life.

I'm not saying have all of your wealth in gold but a person should at least have 25% to 30% in my humble opinion. If the world's economy were humming along then I'd say forget gold. But we are living in times of uncertainty and distress, over inflating, threats of war...etc. This is the time to own gold.

 

[orwellian]

Well, there's the actual indicators themselves:
http://www.economist.com/markets/indicators/

Then there's the IMF forecast for the UK for 2010 and 2011.

Plus there was the 28 independent forecasts from January that thre treasury assembled, which on average indicated that national output would increase by 1.4% this year.

There's other things - rises in consumer confidence, growth in service sector etc.

But I'm guessing you know all about all this, and have cogent arguments why all this indicators are invalid.

Well like I said, those indicators are not very good as they will give you positive growth when borrowing money. Did you read that last part of my last post?

 

[Ries]

They're stupid if they aren't.

But you don't believe that the US can go bankrupt, either...

(Based on your previous posts.)

You are going to be so surprised...and hungry...when the shit hits the fan...

And the shelves are empty...

Even if you still have a credit card.

Actually Steve, I wont be.

Because I grow a fair amount of my own food- I am still eating onions, potatos, leeks, apples, pears, raspberries, blueberries, plums, and dried tomatoes from last year.
I trade labor for eggs, cheese, and milk from neighbors, and I currently probably eat 75% of my food from about a 3 mile radius.
We could easily go to 90% around here. We have local wineries and breweries, fruits, vegetables, dairies, slaughterhouses, oysters and shrimp and fish from the bay-

In terms of self sufficiency, I have no doubt that I am more self sufficient than virtually anyone here-
Of course, that is when I am at my farm in the USA- obviously, when I am in BsAs, I am just as dependent on the Argentine food chain as everyone else.

I also own enough tools, and have the skills, to build or repair almost anything.

So while I am not the least Chicken Little in my political beliefs, I am more prepared to survive the collapse of society than most.
I can easily forge tools or weapons from scrap metal over improvised fires, as I have been a blacksmith for 25 years or so.

So dont worry about me.

But really- where, exactly, is there any credible evidence that the British Pound is going to fall?
All the mainline financial and foreign exchange predictors say it will fall, at most, 5% in the next year.
If any of you really believe in this end of the world stuff, why arent you immediately selling the pound short, investing everything you own in the sure fire profits of betting against it?