The Pound’s Future In A Dollar Collapse

By Alasdair Macleod – Re-Blogged From GoldMoney

In recent articles for Goldmoney I have pointed out the dollar’s vulnerability to a final collapse in its purchasing power. This article focuses on the factors that will determine the future for sterling.

Sterling is exceptionally vulnerable to a systemic banking crisis, with European banks being the most highly geared of the GSIBs. The UK Government, in opting to side with America and cut ties with China, has probably thrown away the one significant chance it has of not seeing sterling collapse with the dollar.

A possible salvation might be to hang onto Germany’s coattails if it leaves a sinking euro to form a hard currency bloc of its own, given her substantial gold reserves. But for now, that has to be a long shot.

And lastly, in common with the Fed and ECB, the Bank of England has taken for itself more power in monetary matters than the politicians are truly aware of, being generally clueless about money.

Conclusion: the pound is unlikely to survive a dollar collapse, which for any serious student of money, is becoming a certainty.

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Run On The Pound Sterling

By Mark O’Byrne – Re-Blogged From http://www.Silver-Phoenix500.com

Right to plan for ‘run on pound’ if Labour wins says Corbyn and Labour party 

– British pound already down 20% since Brexit, collapse already in play

– Run on the pound likely due to Labour’s ‘command economy’ approach

– Collapse in Sterling would undermine UK financial system

– Portfolios holding sterling and related assets would be significantly affected

– Pension funds and property the most likely to get hit by run on the pound

– Gold to benefit as sterling collapse picks up pace

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US Dollar Testing Long-Term Support

By Mike Golembesky – Re-Blogged From http://www.Gold-Eagle.com

The US Dollar has continued to fall hitting a low of 92.72 on Monday, July 31st. The US Dollar also broke through shorter term support levels and is now closing in on long term support that could very well define the longer term trend over the next several years.

When most financial writers (to which I include myself) refer to the US Dollar they are typically referencing the DXY index. The DXY index is composed of 6 currency pairs that are based mostly in Europe. The Euro vs. the US Dollar makes up 58% of the DXY index with the Great British Pound, Swedish Krona and Swiss Franc making up an additional 19.7% of the index combined.

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Brexit And UK Election impact UK Housing

By Mark O’Byrne – Re-Blogged From http://www.Silver-Phoenix500.com

  • Growing evidence of slowdown in UK property market
  • Slow-down in activity in UK housing market in run up to UK election
  • Average UK house prices dropped in the three months to May
  • Halifax report annual house price growth fallen to a four-year low of 3.3 percent.
  • “Political instability breeds procrastination on the part of homebuyers and sellers”
  • Sterling drop will increase divide in housing market, first time buyers continue to struggle
  • House price growth has lost momentum, volumes continue to drop

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‘Most Secure Coin In The World’?

By Mark O’Byrne – Re-Blogged From http://www.Gold-Eagle.com

– New pound coin ‘most secure coin in world’? 
– New British £1 coins much harder to counterfeit
– Pound coin uses “secret” cutting edge technology
– Coins uses ‘iSIS’ technology which may involve RFID tags
– Central banks, governments may be able to track coins
– Libertarians and privacy advocates will have concerns
–  “Secure coin” yes but real risk is that savings not secure due to currency debasement
– Now new risk to bank deposits as all digital wealth exposed to hacking and cyber fraud
– Sound as a pound? Safer to stick with true “coin of the realm”

– Gold and silver Sovereigns and Britannias  (VAT and CGT free) are only truly secure coins

The UK launched what is being touted as the “most secure coin in the world” yesterday – the day before Brexit day.

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There Will Never Be A Sound Currency System

By Egon von Greyerz – Re-Blogged From http://www.Gold-Eagle.com

Most people have no idea what money is. They believe that if they have 100 dollars or euros, that this represents real value as well as durability. Few people realise that their currency which they call money has nothing to do with real money at all. All paper currencies are ephemeral and return to their intrinsic value of zero. This is because reckless governments cling on to power by printing or borrowing endless amounts of fiat money in the hope that they will placate the people and buy votes. Fiat money as the name indicates, can never be real money. It is issued by edict and is not backed by anything but debt and liabilities.

Power Corrupts And Money Corrupts

It is a lethal combination which not only destroys people but also nations. And sadly, we have now reached a point in history when the unlimited amounts of fiat money that have been created will also destroy continents.

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This Is What Gold Does In A Currency Crisis, Brexit Edition

By John Rubino – Re-Blogged From Dollar Collapse

In June the UK shocked the world – or at least the world’s elites – by voting to pull out of the European Union. Economists predicted disaster, EU leaders threatened pain for British exporters and tourists, and the media settled in to watch the UK shrivel and die.

Four months later, the appropriate response is a yawn rather than a scream.

UK economy set to shrug off Brexit in latest GDP figures…For now

(CNBC) – The first indications of how the U.K. economy is performing in the aftermath of the Brexit vote will be known this Thursday, with the release of quarterly gross domestic product (GDP) figures.

Analysts told CNBC they forecast a 0.4 percent growth in the third quarter of this year – an “upside surprise” following the decision last June to leave the European Union. Prior to the vote, many market observers were pointing to economic contractions if voters opted to leave the EU.

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How Not To Manage A Currency

By Alasdair Macleod – Re-Blogged From http://www.Gold-Eagle.com

Make no mistake, sterling’s collapse is a very serious development, and has serious consequences for sterling interest rates. While it is becoming apparent that interest rates are going to have to rise possibly for all currencies on a one-year view, sterling’s problems are the consequence of bad judgement, and perhaps intellectual arrogance on the part of the Bank of England’s Monetary Policy Committee. The MPC in turn is not and cannot be independent from the influence of Mark Carney, the Bank’s Governor, who made the expensive error of intervening in the Remain campaign.

Many commentators are saying that sterling was over-valued, and the fall will stimulate exports. But value is wholly subjective, and not formulaic, as the ivory-tower economists would have us believe. The idea of stimulating exports through lower currency rates overlooks the depressing effect of the transfer of wealth it triggers from ninety per cent plus of the population, in favour of foreigners and owners of export businesses. That is the point about stagflation.

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UK’s Prime Minister Commits To Successful Brexit

By John Browne – Re-Blogged From http://www.Silver-Phoenix500.com

Despite months of fear mongering by former Prime Minister David Cameron and his allies in late June, accompanied by doomsday global economic forecasts offered by the International Monetary Fund and the Obama Administration and a steady drumbeat of anti-Brexit news stories by the BBC, the British people delivered an unexpected event to the global financial system by voting to take Britain out of the European Union. Despite the forecasts of doom and gloom, the people voted for freedom, democracy and common law.

Most of the elites continue to warn of dire consequences for Britain. Moreover, many believe that the separation process will be long, messy and perhaps even farcical. Many argue that Britain will seek some sort of reconciliation, once it realizes the true costs of its hubris. However, a July visit to the UK convinced me otherwise.

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Brexit and the US

cropped-bob-shapiro.jpg   By Bob Shapiro

It’s official – UK voters have chosen to take themselves out of the European Community and to resume taking responsibility for their own economic fate.

Predictably, world markets, as well as the Pound and Euro, have reacted with irrational fear. I expect that it won’t be long before all these markets’ participants realize that the world hasn’t ended. At least a major part of today’s panic likely will be reversed, possibly as early as Monday.

The actual exit of the UK from the EC will take upwards of two years to become final. A lot can happen in that time. A lot of the UK’s potential benefit from Brexit can be negotiated away or legislated away.

The big benefit that I see is the hundreds of thousands of pages of EC regulations no longer applying – no longer impoverishing – the people of the UK. However, it is far from unlikely that some UK legislators are petrified at the prospects of the Freedom – they may try to legislatively protect their Economy from “suffering the full benefits.”

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