Monday, March 01, 2010

Pound suffers sharpest fall in more than a year as prospect of hung parliament looms

In days of yore when England had a decent commodity money, 240 silver pennies, when collected together into a weighing scale, used to balance a one troy pound weight, which is approximately £132 modern pounds, and climbing...

Jim Rogers was misquoted at the weekend, saying that the Great British Pound could collapse in a few weeks. However, have his misquotes proved so strong that they actually helped push the pound into its terrible slide today?

Whatever the case, once the Greek mess is resolved, one way or another, it is going to be the pound that gets punched around both before and after the upcoming general election, because it's a worthless toe-rag of a fiat currency, backed by nothing, and propped up on hot air, borrowing, and quantitative easing.

Just like Mr Rogers, I am not going to be so bold as to predict a timetable, but of all the 'major' fiat currencies, the pound is the closest to being a punchbag, at the moment.

You don't still have any, do you? Get out of it quickly and swap it for: Gold. Silver. Oil. Just do what the Mogambo Guru says and divest yourself of this increasingly worthless currency. You'll be glad you did.


AL said...

Many thanks to good self and the Mogambu Guru, I am awaiting my first dispatch of silver.

Jack Maturin said...

Peter Schiff reckons two-thirds gold, for solidity, and one-third silver, for volatile speculative gain, is about the right initial mix. Build that up until you have a decent lump, and then once you have this Faberesque base (and assuming you can afford it), then diversify into good commodity stocks in good commodity-based or production-based economies.

Alternatively, just buy a stack of Belgian beer and enjoy it while you've got it! ;-)