Please Welcome The UK To The Global Currency Wars

Please Welcome UK To The Global Currency Wars (ZeroHedge, Jan 23, 2013):

When it was announced in late November that Goldman’s Mark Carney would become head of the BOE (a “shocking” move only Zero Hedge predicted), we said that one has to be insane to be buying the GBP at those levels. Sure enough, it took just two short months before the implications of yet another Goldmanite’s pro-inflationary policies would become apparent. To wit:

  • KING SAYS BOE IS READY TO PROVIDE MORE STIMULUS IF NEEDED
  • KING SAYS QE WAS CRUCIAL IN AVOIDING U.K. DEPRESSION
  • KING SAYS U.K. BANKS SOME WAY FROM CONVINCING MARKETS ON SAFETY
  • KING SAYS POUND DROP WAS NEEDED FOR U.K. REBALANCING
  • KING: U.K. 4Q GDP ALMOST CERTAINLY CONSIDERABLY WEAKER THAN 3Q

And the punchline:

  • KING SAYS REBALANCING NEEDED TO AVOID CURRENCY WARS

In other words, please welcome the UK to the global currency wars.

and thusly FTSE-100 stock futures reach 50-Month highs as the triple-dip is about to begin…

1 thought on “Please Welcome The UK To The Global Currency Wars

  1. This is what most people don’t understand. The real world war is economic, and the starting shot was fired with the advent of the Sucre, the first electronic currency, by the South American Trade Alliance. It has made the US dollar vulnerable, because electronic currencies make the entire idea of a world reserve currency (currently the US dollar) obsolete. The electronic currency translates the value of each nation’s currency, making conversion to the US dollar irrelevant.
    All of Europe and the western world has relied on the US economy to keep the game going. Now, we have dropped from 100% of involvement in all international trade to 60% in the past year and a half. It will be even less by the end of the year.
    China, Japan, Russia, Turkey, and many other emerging nations no longer use the dollar, instead they use electronic currencies to complete their international trades. It is a huge shift in power, and the UK will suffer along with us.
    The war is being waged, and we are losing.

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