Posted by: Babu Suresh | September 24, 2009

GBPUSD-240909

Hello Friends,

Glad to meet you all, amidst Pound taking a soild hit against USD.

GBPUSD-240909What I am amused about is, when a week ago BOE made it clear it does not like Pound remaining stronger, citing all possible reasons, market seems to have taken it lightly. But, when today Mr. King made it explicitly clearer, he would not mind a weaker pound in a subtle way, market is reacting as though this is the end of the Pound.

When all over the world, except notably of course US, Swiss & Japanese, all the central banks are desperate to have their currencies stronger, all these months BOE seemed to have been sleeping and suddenly they have awakened with an inexplicable realization that they are more concerned about their economy. I don’t recall anytime during the last few decades, British have ever been overtly concerned about their economy, thanks to their immensely enjoying the blessings from their big brother US. Now, US for the first time ever, perhaps after the 2nd world war decided to do away with British and telling them to take care of themselves as the US have their own problems to take care.

GBPUSD-1-240909It’s now too apparent, British have never had a credible economy, as they have been boasting to the world with their high handed attitude and now left on their own, they are finding it terribly difficult, rather impossible to mend their problems that have been stemming for several decades now.

Let’s wait and see, whether as they claim, the weaker Pound would help them restore their economy, if that’s the only solution as they feel.

Wish to quote Dr. Stephen Covey’s, “The significant problems we face cannot be solved at the same level of thinking we were at when we created them”. Hope someone conveys this to Mr. King and Mr. Brown.

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