Tuesday, March 02, 2010

Is this the start of a Sterling crisis?

Edmund Conway comes out with some more Keynesian cobblers about how a 25% decline in the purchasing power of the pound is a good thing (which is like being robbed once a week, with only one or two items a week being stolen), but does have a reasonably good analysis of the sterling situation.

Just like tenbelly however, one of Mr Conway's commenters, I'm with Jim Rogers on this one:

Incidentally, it's worth watching to the end of the video above to get the Jimster's playbook on how the IMF may try to floor the price of gold, but how when it does this it will create a great gold-buying opportunity. You may recall how the IMF has already tried to do this once, however the fun will come when it sells off all of its gold, thereby losing all of its economic leverage and becoming a toothless tiger that will ultimately dissolve into nothingness.

Bring it on.

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