Thursday, 7 January 2010

Pound to Collapse

Sterling Will Fall 12% on Financial Woe, BNP Paribas Says

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By Anchalee Worrachate

Jan. 7 (Bloomberg) -- The pound will fall 12 percent against the dollar this year as deteriorating public finances, concern the nation’s credit rating may be cut and political discord deter foreign investors, BNP Paribas SA expects.

Sterling will drop to $1.5730 in “coming weeks” and slide further to $1.40 by the end of the year, according to Ian Stannard, a currency strategist in London at BNP Paribas, France’s biggest lender.

“The pound will fall off the cliff,” Stannard said in an interview. “There are a number of negative factors that work against it. Some high-profile bond investors already said they are pulling out of the U.K. If foreign investors start to turn their back on the gilt market, that will be quite bad for sterling.”

Sterling fell 0.7 percent to $1.5912 today, from $1.6019 yesterday.

Moody’s Investors Service warned in December that Britain may “test the Aaa boundaries.”

The Bank of England will keep the benchmark interest rate at a record low 0.5 percent today, all 53 forecasts in a Bloomberg survey showed.

“We are unlikely to see any rate hikes in the U.K. this year, and perhaps well into next year,” Stannard said.

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Rusty Mason said...

A 12% drop is not good, but it is a far cry from "collapse" and "falling off a cliff." The problem with overblown metaphors is that when conditions change further, one either must be accurate and reuse the overused phrase, or continue with the hyperbole.

Anyway, what good is a %10 change indicator, when the best contractual estimates are usually +/- 10%? If 10% is as bad as it will get, then my advice is to continue with your business as usual.

Adrian Peirson said...

As times get hard, more and more causes are going to need help.

Can I suggest the BNP set up a 100 Worthy Causes website or pages.

A webpage or seperate site with 100 downloadable / printable standing orders where the public can pledge £1 per year by standing order.
So for £12 a year, BNP visitors can support, at very little cost to themselves, 12 worthy causes each.
If the BNP has 1 million voters, and they all did this, this would mean 12 Million could be raised for causes like this.
If a BNP member is persecuted, funds can be directed to him and his family for virtually no cost by supporters.
It's democratic because the public get to choose which causes they support.
If they want to pledge more they can, or per month but I suggest £1 because then everyone can get involved.

Adrian P said...

All part of the Grand master plan to destroy Western Civilisation by the Communistic New World Order.
How do you gain control over people, by bringing them to their knees, with food, water, energy, fuel and economics.
All the while the masses look at their TV and Brown is saying, everything will be fine, recovery is just around the corer, go back to watching X Factor, celebrity big brother,
and we sink deeper and deeper into the quagmire of their Marxist Totalitarian New World Order.
Pretty soon, the masses will be huddling round a candle, And Cameron or some other Mesmerist will be saying to them in between X factor and celebrity big brother, everything is fine, no need to worry.
Look how far they have brought us with this mass hypnosis.

It's Brilliantly done, you have to give them that.

Brian Gerrish Pt 1

Adrian Peirson said...

Here's a British Industry that would solve a lot of problems.
Wood fired Power Stations, a self regenerating fuel supply that is Carbon Neutral, IE all you have to do is ensure that for every tree chopped up and burned you plant a new one, or 2 if you want to be really Green and if you'd like to leave your children a Country to be proud of why not make it 10.
Sure, if we did this now those 10 Saplings don't account for the CO2 released by burning a single tree, but in 5 yrs they are doing.
I dont acturally believe this CO2 rubbish but playing devils advovcate, This works, we can do this, All we need do is close the bloody borders, get rid of 1 million illegals, give em £10,000 each, and the economic migrants.
10 Billion, they cost us that in welfare and admin anyway.
They would be kings in their own country with that money.

Wood fired Power Stations

Add to this bio fuels grown by our own farmers, add to this the small amount of oil we still have left,
And the few Coal and Nuclear stations we have.
who needs to be reliant on foreign oil.
There is absolutely no need for us to be worried over fuel supplies or Pollution.

When I had my deisel car, I regularly drove to Tescos and filled up with a 50 50 mix of Veg oil at 52p per litre and regular deisel at 1.00 per litre, that was until Jeremy Clarckson did a programme on Veg oil useage in cars and decided it worked.
Within months the price of Veg oil went up to over £1 per litre and there it has remained.
Why can't our farmers grow rape seed oil, crush it and sell it to the public at 50p per litre.
Hes not to know what they are doing with it.
And as far as the Govt is concerned you can put Veg oil in your car without incuring the fuel levy if its less than x ( i forgot the figure but around 10,000 i think ) litres per year anyway.

If we act soon enough there is no need for us to be held to ransom over energy or fuel, EVER.

Trees are made of Carbon, they get this Carbon by fixig it from the atmosphere while growing, thus the Carbon released during burning isd only that which was absorbed while it was growin.
So no net CO2 gain to the atmosphere.
This is not true of Petrochem oil, which was madde from CO2 absorbed millions of years ago, which is released into our atmosphere today, with no means to remove petrochem CO2 from the atmosphere.
Apart from Browns promised Carbon capture technology for which we will pay through a carbon tax.
Of course we already haver Carbon Capture technology readily available, they are called Trees and no taxes are required.
The Whole Carbon Pollution thing is an abvious total fraud.
What chance anyone getting these crooks in front of a Jury.