miltiades wrote:Robin, Im mystified that your views haven't changed the least since the early days following the referendum and the fall of Sterling which you put down to speculators denying the obvious fact that the fall was exclusively due to Brexit. You chose to ignore the fundamentals concerning speculative trading in that speculators do not just speculate down but also up. Ypu state that we have a well established curremcy also that its recognised. Well can you name one currency in the western world that isnt recognized or indeed established. As for your comments on the EU and the Euro you are totally out of touch since the Euro , just as the US $ is the preferred currency by most countries.
The euro is strong against most currencies and will soon replace the dollar as the predominantly preferred currency. The EU will continue as it has done for many years and will become stronger by the year. The UK will see its economy in tatters purely because it will no longer ve a part of the EU. Its clear that the leave voters voted according to their own brand of prejudices without any consideration for the future of our country. The UK is going nowhere more so with a Clown leading it.
Time will show, in the meantime Sterling is trading below 1.10 euros because of BREXIT NO other reason.
It was the UKs ineptitude and stupidity and the scare mongering of the remoaners that triggered a drop in the Sterling. When the referendum occurred, the UK should have got out of the EU quickly and efficiently. The quicker, the better.
Speculators don’t like uncertainty and now the uncertainty has gone.
The only elephant in the room now is Coronavirus which makes everything unpredictable and will crash the global economy and spook the markets.
What the British Parliament and EU did amounted to betrayal of the people and economic terrorism but it all backfired in their faces when the UK Elections were held and the British people sent their message of enough! They told their leaders to get BREXIT done and finish the issue which plagued them for 4 years.
Britain is actually in a very healthy state with its own currency and Central Bank. You should be more concerned with Cyprus who now have no currency of their own or their own autonomous Central Bank.
Just now in Australia, our Federal Reserve just announced it will reduce interest rates to 0% and start printing money. In other words, they are taking emergency steps due to Coronavirus to lessen the impact. Euro zone can’t do that without the say so of Markel, of the fourth Reich!
And there are many reasons for currencies to decline. Reducing interest rates, results in a decline in currency. Printing money also means a declining currency. Right now, the rest of the world is printing like mad.
And make no mistake! If a country is unable to exercise such fiscal control, then I question their sovereignty!