£GBP heading to oblivion

[Pipers]

Who wants to catch a falling knife.  I have just watched the ITV news (propaganda) Unilever and Tesco are at it because of Brexit, not one mention of Osbornes (now Hammonds) Current account deficit and Carney's Devaluing of Sterling, I wonder how low the £ will go before we see trouble in the streets, if we do see trouble, Carney will have to take responsibility because of his reckless way he has ran the BOE with very loose policy.

Prices are going up for most people, this is ok if you are wealthy its the other 95% who have mortgages, rent, utilities and food that it effects.      

[KDave]

This is what we were talking about a few months ago if I remember right, saying that people would not notice the actions of Mark Carnage until prices went up in the local Tesco. Well the time has come, still no one has a clue who is behind the mess, but more importantly the question is what is coming next? Carney can't put interest rates up without screwing over the same group of people for a second time can he?

Working people will just have to get used to getting poorer every month, paid the same number but receiving less value, unless they receive an 18% wage rise that is. The only way people will know the real reason behind it all, is if a scapegoat is required, at which point Mr Carnage will have probably done one back to Canada if he has any sense. For now Brexit is a better scapegoat and it suits the narrative for the latest derail attempt, a court case for taking control away from the PM and giving it to parliament to vote on the details. You can bet that if that gets through the court system Parliament will be virtually reversing Brexit for all of our own good! 

[Roy]

Have prices gone up?

I'm hardly the average shopper or consumer but I can't say I've noticed.

[KDave]

I'm guessing you don't watch the BBC news either Roy. 

In fairness nothing has gone up yet, but in summary - Tesco have instigated shortages on some of their products (making the news) because of disputes with distributors who naturally want fair value for their goods. 10% I think is the expected price hike in sterling on average, but being the hero's they are Tesco are making for some positive PR out of the situation by saying no to the increases for a bit, then will eventually fold and put up their prices. We can expect everything to start creeping up in £ terms once the big distributors get their way. 

Nothing has gone up yet though. Now may be a good time to go long on anything with a decent best before date lol. 

[Pete]

I fail to understand the demise / devaluation of sterling.

Earlier this year I was tempted to buy a few grand of US dollars just to hold onto for future travel etc. BUT all the indicators were that due to the huge out-of-control US debt and some bad news still to be uncovered, the forex experts were predicting a sharp fall in the dollar. It was said that the US could not even afford to pay back the interest on its credit card.

As for the Euro, more QE and a crisis looming again with the banks and other debts, not to mention Greece, Spain, Portugal and Italy.

The UK was in relatively great shape apparently then suddenly we are f*cked so what is really going on ?
Absolutely no point listening to the anti-Brexit BBC and SKY news for facts.

I reckon the currencies are fudged, big time, and once again the sharp practices of the big players in finance are stoking up for a killing.
Get your algorithms right and you can make serious profits on the volatility of forex - profit is the first derivate ( calculus terminology ) of change provided you buy low and sell high and repeat over and over again.

[Scuzzle]

I don't think there are such a thing as currency wars I think it's all currency collusion, they all go to these Davos meetings and decide whos turn it will be for their currency to collapse in the race to the bottom. I think we are all meant to go down the tubes at more or less the same time.

[sovereignsteve]

2 hours ago, Scuzzle said:

I don't think there are such a thing as currency wars I think it's all currency collusion, they all go to these Davos meetings and decide whos turn it will be for their currency to collapse in the race to the bottom. I think we are all meant to go down the tubes at more or less the same time.

it's the only way to keep this show on the road. if everyone loses at the same time, then nobody actually loses at all.

[Daz147]

There is only 1 person to blame for the GBP devaluation and that is Mark Carney, reducing interest rates out of the blue and for no real reason.  All current reports put the UK economy in a relativly good position, he even had the nerve to say that he was not bothered if inflation increased above the target 2% as that was a price worth paying.  Last I remember was that he had to report to the treasury every time the inflation target was missed, and we all know the antidote to high inflation, yes increase interest rates.  This all seems aimed at punishing the little people who dared to vote against "those who know better".

[Oldun]

16 hours ago, KDave said:

I'm guessing you don't watch the BBC news either Roy. 

In fairness nothing has gone up yet, but in summary - Tesco have instigated shortages on some of their products (making the news) because of disputes with distributors who naturally want fair value for their goods. 10% I think is the expected price hike in sterling on average, but being the hero's they are Tesco are making for some positive PR out of the situation by saying no to the increases for a bit, then will eventually fold and put up their prices. We can expect everything to start creeping up in £ terms once the big distributors get their way. 

Nothing has gone up yet though. Now may be a good time to go long on anything with a decent best before date lol. 

That's funny. The BOE just blew through 10% (a billion quid) of their post Brexit buy corporate bonds programme emergency fund. And when I say fund, I mean someone pays for it down the road.

http://blogs.wsj.com/marketbeat/2016/10/14/bank-of-england-speeds-through-bond-buys/?mod=WSJBlog

[HawkHybrid]

http://www.bbc.co.uk/news/business-37652467

 

the solution is simple... buy british.

where a fluctuating £ makes no difference.

 

HH

[Danny-boy]

the solution is simple... buy british.

where a fluctuating £ makes no difference.

Not quite that simple, there are a huge amount of British products that use resource from abroad, so the price rises will likely be passed on.

[HawkHybrid]

take the hit of the smaller percentage rise on the overall

product/service price that is due to foreign currency

denominated rises. notice how there is no mention in the

whole article that buying british will help solve some of

the immediate problems. if they hadn't come to an

agreement, I can see tesco stocking british replacements/

compromises while waiting.

 

HH

[Guest]

I am surprised (not!) that nobody has mentioned that the real benchmark is gold. Not ony has the £ depreciated against the $ and the € but significantly against gold:

 

https://www.bullionbypost.co.uk/gold-price/one-year-gold-price

[HelpingHands]

6 1/2year low against the euro.

Germans will be buying silver in the UK next.

[Bumble]

Moneyweek reported last week that, on the basis of purchasing power parity, the pound is already undervalued against EUR and USD. I'm sure the speculators will continue to short the pound for profit, but unless there is a substantial fall in the UK's productivity relative to the USA and euro zone, GBP should recover back towards parity, otherwise it will just create arbitrage opportunities for traders.

[sovereignsteve]

Ah yes, the Big Mac comparison

Exactly the point though, most of the problems with the pound are politicians and bad-loser remainers talking it down. If everyone just accepted the situation and concentrated on making a success of Brexit, we could avoid all the short term problems.

[HawkHybrid]

http://www.bbc.co.uk/news/business-37815516

 

define 'tremendous' ?

 

HH

[Paul]

British Dictionary definitions for 'governor' 

{noun}
1. a person who governs
2.the ruler or chief magistrate of a colony, province, etc
3. the representative of the Crown in a British colony

 

The government of Clement Attlee nationalised The Bank of England in 1946, issuing Treasury Notes in the sum of £11,015,100. All the stock was owned by the British Government, although The Bank of England continued as a ‘Royal Charter Company’ with the absolute protection of confidentiality and security afforded by a Royal Charter and The Official Secrets Acts.

Obviously the nationalisation was not welcomed by its share holders or bankers of the day. Wilson’s abrupt resignation as Prime Minister in April 1976 and the new government of James Callaghan had virtually no majority, ‘UK Ltd’ was vulnerable and effectively bankrupt, with double digit annual inflation, 70% over 3 years, incessant strikes, the £ Sterling frequently suspended on international exchange markets, virtual parity with the US$, the ideal time for the share holders to strike back and re-take the Bank of England.

However because the government was broke after the second world war they didn’t have enough money to buy out all the shareholders so instead they were issued with government stocks.

Although the government now earned money from any bank profits they also had to pay interest on any new stock they issued to pay for the shares they couldn’t buy back in the first place.

In 1977, the Bank set up a wholly owned subsidiary called BANK OF ENGLAND NOMINEES LIMITED, a private limited company with 2 of its 100 £1 shares issued. The objectives of the company are:

a wholly owned subsidiary private limited company, no: 1307478, with 2 of its 100 £1 shares issued and its Memorandum & Articles of Association’s Objectives are;-

“To act as Nominee or agent or attorney either solely or jointly with others, for any person or persons, partnership, company, corporation, government, state, organisation, sovereign, province, authority, or public body, or any group or association of them….”

The two shares belong to the bank itself and John Footman who only holds it on behalf of the bank. 

The directors of this private limited company which is a subsidiary of the bank are John Footman and Andrew Bailey who are both employees of the bank itself.

This company is very special as its protected by the official secrets act, its Royal Charter status and is exempt from the normal disclosure requirements that other companies have to comply with to meet section 27 of the Companies Act 1976.

MELANIE JOHNSON MP, Minister for the Treasury, informed me that “BOEN is a wholly owned subsidiary of BOE, which was granted an exemption by the Minister of State for Trade from the disclosure requirements under Section 27(9) of the Companies Act 1976 , because;

“it was considered undesirable that the disclosure requirements should apply to certain categories of shareholders”.

This answer to a Freedom of Information request provided in 2010 gives a similar answer.

As we have seen above The Bank of England with its Royal Charter Status and Official Secrets Act, has more confidentiality and security than the MoD and is even immune from questions being asked in the House of Commons. So why form a wholly owned ‘NOMINEE’ COMPANY which in 23 years HAS NEVER TRADED and only lodges ‘Short Form’ un-audited accounts ?

I allege that The Bank of England was sometime after 1977 effectively ‘Privatised’, its shares being held in BOEN, thereby making a ‘closed loop’ , i.e. although BOEN is a wholly owned subsidiary of BOE, BOEN has effective control of BOE through the said shares owned by the secret share holders. 
I am advised that only 50% of the shares were sold, but they have ALL the voting rights ! Share holders appoint directors, look who makes up the ‘Court’ of Directors of The Bank of England, bringing one to the only conclusion that the Bank of England is owned covertly, if not by the banks, then by a higher banking entity which has the interests of the banks at heart, which justifies the rampant and systemic fraud perpetrated upon their customers with arrogance and impunity.

The reason being is that the major players in the world of finance including the Queen of England and other Royal families use this company to purchase shares and remain anonymous.

However the Bank of England Nominees company accounts are not exempt from any laws regarding companies and they must print their accounts as every company must do which can then be accessed through the Company House website. 

It is interesting to note however that the latest Bank of England Nominees LTD accounts say that:

“There has been no income or expenditure on the part of the Company since its incorporation and accordingly no profit and loss account is submitted.”

I fully expect Carney is just the front man mouth piece and public pinata for what those in the shadows (re: shareholders) pulling his strings and giving him orders what he has to do to keep his job 

 

[Pipers]

Well its that time again, the Fed raised yesterday 0.25%.  The markets expect the BOE will not raise interest rates, IMO this will put sterling under more downward pressure in real terms, it will be blamed on Brexit which is nonsense.  Carney will talk a load of rubbish about increasing interest rates in the future and move the goal posts again, he is very good at talking sh-t.  

Who in their right mind would buy British Gilts at these rates!!!!

Real Inflation in most homes in the UK must be running around 10% when factoring in all costs and not just the cherry picked costs that suit the Government/BOE.

I now honestly believe we will see the £ weaken down towards the $1.10 -$1.05 or or even £1-$1 before 2020 at which point there will be social disobedience.

I am now of the opinion the BOE is debasing the currency fast and for the long term on behalf on the Government (same as Japan) to reduce the debt, savers must be made aware of this and put their money into assets not into banks or building societies.  We on this forum already know this thats why we read or post here, the vast majority of the population are ignorant of this fact.           

[Pipers]

As predicted the rate has stayed the same at 0.25 with a vote of 8-1.  Some numties in the city have pushed the £ higher on news of the Queen signing a piece of paper so the news has said, though the real story is £10billion of QE so more free lunches dinners and suppers for the city when the news settles I believe sterling will drop back down and the bears will be out again.  

[Paul]

[4Nines7Hills]

carney needs sacking not convinced he is doing his best for the UK  he is getting to the end of his contact so will be starting to get  in good stead with his next potential employer, like him over stopping the mark with his brexit prediction which isn't in the remit of the BOE and was wrong anyway.

 

inflation hasn't been at the 2% target for years and is only higher than it has been recently due to more QE and as the pound dropped due to uncertainty increasing import cost .

 

 

 

[Roy]

Pipers says,

'Real Inflation in most homes in the UK must be running around 10% when factoring in all costs and not just the cherry picked costs that suit the Government/BOE.'

I'm not disagreeing with this but as a forum, from all parts of the UK, are people feeling this in their wallets?

[vand]

Grocery costs have gone up, for sure.

I don't know about 10%, but I would guess it's probably 4-5%. And, of course, whenever you go abroad now your GBP doesn't buy nearly as much as it used to.

[ApisMellifera]

yep I work in retail and most suppliers are bumping up their in April.