Pound suffers worst fall in 41 years

[Swanny]

As foreign investors abandon the UK, the pound has lost a quarter of its value against the dollar over the past year – more than was suffered in 1967, 1976 or in the year after 1992's Black Wednesday. Sterling yesterday suffered its biggest intra-day fall in recorded history, dropping at one stage by 9.6 cents against the dollar, and falling to its lowest overall level in 12 years.



http://www.telegraph.co.uk/finance/financetopics/recession/3255594/Pound-suffers-worst-fall-in-41-years.html

Ouch!!!! :original:

[Knightbk]

Woot! Cheaper exports!

[Kulapops]

There seems to have been some efforts in the last months to influence the dollar value, the paper value of gold falling and the USD index rising when it really should be going the other way.

Perhaps this is a reason why the dollar has an inflated 'high' value currently against the pound. The euro is also tied into the dollar and if the dollar falls, then the euro will too. Perhaps then the pound will have regained it's ground... but I guess by then it will be academic ! If that happens.:original:

I recommend the following for really interesting updates on the financials. I think this guy really has his head screwed on and he seems to write with his heart and a care for people too. It's not just for people with megabucks (his info is free anyway) but he really comments on what's happening and what the government's are doing financially.

http://www.jsmineset.com/

Jim Sinclair maintains that the dollar will trade at .72, .62 and then .52 it's currently in the low eighties.

Thanks for bringing up the currency issue Swanny !

[nigel2285]

There seems to have been some efforts in the last months to influence the dollar value, the paper value of gold falling and the USD index rising when it really should be going the other way.

Perhaps this is a reason why the dollar has an inflated 'high' value currently against the pound. The euro is also tied into the dollar and if the dollar falls, then the euro will too. Perhaps then the pound will have regained it's ground... but I guess by then it will be academic ! If that happens.:original:

I recommend the following for really interesting updates on the financials. I think this guy really has his head screwed on and he seems to write with his heart and a care for people too. It's not just for people with megabucks (his info is free anyway) but he really comments on what's happening and what the government's are doing financially.




http://www.jsmineset.com/

Jim Sinclair maintains that the dollar will trade at .72, .62 and then .52 it's currently in the low eighties.

Thanks for bringing up the currency issue Swanny !

prediction for pound goes even or close to euro uk switches to euro. dollar crashes taking euro with it and then you will see one world currency one world order just a thinking what do you think pound is now 1.21 vs euro

[Swanny]

They will switch us to the euro very soon at this rate

[twiceborn]

Why not cash your pounds for euros now before they screw you again, what do you think.

[AndyH]

If you must have foreign currency then buy swiss francs.

I see the pounds decline and the dollar but not the euro immediately. Certainly the UK govt can start mentioning a change to the euro when it's around the 90p to 1 euro mark.
It's still a long way off that though.

[THE eXchanger]

canada, can be a good country to invest in

[nigel2285]

euros are coming sooner than we think, if the pound crashes quickly the govnerment will step in and change.the public will not have a say in it, i dont see them printing euros off in time for the change. you could see the first cash less nation maybe?

any one agree?

[Leadman]

canada, can be a good country to invest in

Until it gets the Amero!

[THE eXchanger]

i do NOT think that will happen
our monetary system, is quite different from the usa one

[nigel2285]

shadow minister warns yesterday pound could collapse. now he is retracking statment, its a warning start stocking up people euro here we come.
once we go others will fall, iceland is in the same boat .

[AndyH]

shadow minister warns yesterday pound could collapse. now he is retracking statment, its a warning start stocking up people euro here we come.
once we go others will fall, iceland is in the same boat .

I'm very concerned about Iceland.
As a Brit I feel betrayed by Gordon Browns words, it goes against everything Britain should be about. The icelandic people are a lovely bunch, they don't deserve this.
I can only hope that Iceland manages to stay outside the EU & the euro, but looking at the situation one cannot see much alternative for them in the long run.

[pineal-pilot-in merkabah]

i do NOT think that will happen
our monetary system, is quite different from the usa one no it isnt it owned by the same federal reserve banking people.. your money is garbage same as dollar and pound euro ect.(canada will pop when the dollar pops.. mexicans wont feel any difference since canda and usa are being bought into line with said peso value). fiat paper ..:nono:

[pineal-pilot-in merkabah]

Woot! Cheaper exports!that would be cool if we made stuff and that other countries wer'nt bankrupt also..:cup:

[pineal-pilot-in merkabah]

I'm very concerned about Iceland.
As a Brit I feel betrayed by Gordon Browns words, it goes against everything Britain should be about. The icelandic people are a lovely bunch, they don't deserve this.
I can only hope that Iceland manages to stay outside the EU & the euro, but looking at the situation one cannot see much alternative for them in the long run.gordon brown is aNWO puppet, why would you not feel betryaed by a puppet politician>?? ireland is bankrupt, britain is bankrupt, euro zone apart from germany is bankrupt.. global slow motion collapse.. thanfully it gives us a weee bit more time to prepare.:smoke:

the pound died on october 14th when thyey guatanteed the money markets..im wondering if we get plunged into the euro for our fix of hyper inflation or wether we will keep the pound and have wheel barrows full of pounds.. im inclined to think we get a hyperinflated pound first then pehaps be the first cashless nation on earth like suggested above..

[eugene_vn]

If it's any consolation, the pound is due for a rally to around 1.67 over the next 6-8 months. However, further deterioration to levels not seen since 1984-1985 should ensue after that.

Of course, if the US dollar gets wiped out around the same time (summer 2009 as many are predicting) then the entire world currency system could change (e.g. UK starting to use the euro. USA using the amero. . .) in such a way that it is no longer possible to rate the pound's strength in terms of its relative value to the US dollar, Swiss franc, etc.

[Pure_energy]

no it isnt it owned by the same federal reserve banking people.. your money is garbage same as dollar and pound euro ect.(canada will pop when the dollar pops.. mexicans wont feel any difference since canda and usa are being bought into line with said peso value). fiat paper ..:nono:

I agree with you mate. Every country uses the same moder money mechanics and therfore are trap ( if not with the same family ) with the same system.

The increase of value of the dollar is easly explained.

Imagine a meteoroid colliding in the sea. If you are at the shore you will not see the massive wave at first. What you will see is the sea going back and then a massive wave. That is what is happening now. With all the troble in US all the people that had money ( dollars ) invested in UK or in any part of the globe are withdrawing their money to save their asses is US but soon it would be no money left to save them and the big wave will come.

Imagine that you have 100k pounds invested in a saving account in US and you are feeling that the market there is going to crash or maybe your business in UK is feeling the heat and you need that money. You take that money back meaning that there is less pounds in US making the pound there stronger ( less pounds in a place makes harder to buy therefore more expensive ).

That is what is happening, business from US are trying to save themselves and soon there will be nowhere to run.

I also agree with the people that say we are going to euro soon. My friends keep teling me that we need a Plebiscit ( people are ask to vote pro or against it ) but the fact is that on this is a control demolition and at the end people will ask to be on euro on a hope to be saved.

Peace

[piers2210]

Stock up your shelves folks....

The food shelves will be empty soon. This is because the distribution network is being strangled by the banks, who issue letters of credit. This has been coming for a while to be honest, but is a real event now.

LaRouche has got it right:

www.larouchepac.com/node/11837/print

True and frightening

[Swanny]

The Pound is taking a beating against the Euro at the mo :thumbdown:

[Swanny]

£1 = €1.02522 :tears:

[Egg]

£ can be less than the Euro piece of **** for all I care. I am still not voting for scrapping the £.

If they try that, I have to say I will surrender my british passport on my way out of the country to raise an army and return to claim England back for us natives and throw out every single europhile and sycopantic little **** who supports Brussels.

So I will, so there.

[Delphi]

No wonder the alarm bells rang in my head when Mandelson was brought back into the cabinet!

[Egg]

No wonder the alarm bells rang in my head when Mandelson was brought back into the cabinet!

The prince of darkness and Marions 'oh so ever so best friend' mandy a harbinger of doom? never! could it be? lol.

[piers2210]

Since the first post in this thread (and the article in the telegraph which showed a rate of $1.58 to £1, and a fall of nearly 10% on that day on Oct) the pound has continued to fall and is now at $1.43 to £1 today.

And as Swanny pointed out above, the euro is now basically on par with the pound.

For all those who like to buy imported foods and goods, or like to holiday outside the British Isles (or maybe live overseas but are paid in Pounds) the continuing fall of the pound against ALL currencies (including the weak asian currencies) is a disaster. As the fall affects so many, the likelihood of the euro being ushered in as a replacement for the pound cannot be far away.

Its part of the plan.....

The only currency the pound may rally with in the new year is probably going to be the dollar as the usa is as bankrupt as the pound.

But we should expect continued downwards currency movement this coming year.

[Antaletriangle]

http://www.ft.com/cms/s/0/428b5e20-d612-11dd-a9cc-000077b07658.html
Sterling falls to fresh low against euro
By Peter Garnham

Published: December 30 2008 02:00 | Last updated: December 30 2008 02:00

The pound dropped to a fresh low against the euro yesterday, falling closer to parity against the single currency on expectations that UK interest rates were heading lower.

The pound has suffered against the euro, dropping a record 17 per cent this month, as investors bet that the Bank of England would slash interest rates, which stand at 2 per cent, at its policy meeting next month.

Indeed, Bank officials have hinted that the UK could follow the US and adopt a quantitative easing approach to monetary policy - pumping money into the financial system once rates, in effect, hit zero. In contrast, the European Central Bank has adopted a more hawkish tone, indicating that it will keep eurozone interest rates on hold at 2.5 per cent as it assesses the impact of the global economic slowdown.

The gloom surrounding the UK economy was heightened as figures revealed that house prices dropped 8.7 per cent in 2008.

Reports over the weekend suggesting that the UK economy could shed 600,000 jobs next year also weighed on sterling.

Meanwhile, traders said escalating political tensions in the Middle East were providing support to the euro and Swiss franc, boosting safe-haven flows into both currencies.

The pound fell to a record low of £0.9799 against the euro before recovering some poise to stand down 0.5 per cent at £0.9640 late in New York.

Sterling also fell 2.9 per cent to SFr1.5187 against the Swiss franc and lost 1.1 per cent to Y131.41 against the yen.

On a trade-weighted basis, the pound fell to 73.7, the lowest on daily records kept by the Bank the England, which date back to 1975.

But the pound's losses were less acute against the dollar, easing 1.1 per cent to $1.4510, because the dollar was also on the back foot heading into the new year.

Analysts said the greenback had lost its appeal since the onset of quantitative monetary easing in the US this month.

Daragh Maher, of Calyon, said: "In this new environment, disappointing US economic data is seen as building the case for even more aggressive quantitative easing and therefore a greater supply of dollars and consequent dollar weakness."

The dollar fell to $1.4361, before it pared losses. Late in New York the dollar was up 0.5 per cent at 1.4 per cent to $1.4256 against the euro and was down 0.8 per cent to SFr1.0594 against the Swiss franc.

Elsewhere, the Russian authorities took advantage of the weak dollar to continue their devaluation of the rouble. The Russian central bank let the rouble fall 1.8 per cent to 34.31 against its euro/dollar basket, the largest fall since the introduction of the basket in 2005 and its ninth mini-devaluation over the past month.
Copyright The Financial Times Limited 2008