EMERGENCY: BRITISH ECONOMIC CRISIS; STERLING COULD MOVE SHARPLY LOWER
January 26th, 2009WARNING: This is not a recommendation to buy, sell or hold any financial instrument.
We’re looking at a strategic downside breach on the British Pound vs the Dollar. If the pound doesn’t bounce now, the next good support is GBP/USD 1. The Bank of England is going to get bloody trying to touch off a short covering rally. Frankly, I hope it works because if it doesn’t, Britain could collapse.
GBP/USD, monthly interval
ATTENTION ALL CRYPTOGON BULLIONVAULT CLIENTS: I don’t know why you would be doing this, but if you are holding a substantial amount of cash in your BullionVault account, consider either buying gold with it or wiring it out of Britain now. BullionVault holds their clients’ cash in Lloyds Bank. ALL LARGE UK BANKS ARE ALMOST CERTAINLY INSOLVENT. I would not hold cash in any British bank.
Britain is facing so many massive and fast moving financial crises that it’s looking like a perfect economic storm there.
This article in the Telegraph mentions the current support has stood for roughly 2 decades. Evidently after that we go to just a hair over $1 / Pound in the early 1980s.
http://blogs.telegraph.co.uk/ambrose_evans-pritchard/blog/2009/01/20/seriously_alarmed
I really only link this piece because I love the last paragraph:
“The Baby Boomers have had their moment in power. The most spoilt generation in history has handled affairs with its characteristic hedonism. The results are coming in.
The blithering idiots.”
“Frankly, I hope it works because if it doesn’t, Britain could collapse.”
Personally, I suspect Britain already is in collapse. If not economically, then certainly politically, culturally, socially, etc.
My uncle and aunt took a trip to England a few years ago. He was in a town in the northeast of England, walking across a bridge while pushing my aunt who was in a wheelchair. At that point a red, doubledecker bus – that very symbol of friendly British tourism – came barrelling down the road, blasting his horn. After my uncle hurriedly pushed my aunt off the bridge, the bus passed by and the driver stuck his hand out the window and gave them the finger. I know that was just one minor incident, but since when do the British treat elderly tourists that way? I think that sort of thing is just a microcosm of the deeply fucked-up state of British society, and an indicator of the general collapse they are experiencing.
@ tm:
I’ve been hearing things for years now, at the very least the last twelve years, indicating that the UK is a bitterly unhappy, profoundly dysfunctional society. So much so that part of me doesn’t want to say so out of the temptation to deny the fact that our cultural mother country could be in such a sad, pathetic state.
Boy did that intervention happen, they only triggered a nearly 400 PIP move on GBP/USD, though the roughly 300 PIP move on EUR/GBP consoldiated back today, leaving it a mere 90PIP push back as I write this. However, the momentum seems to have tilted, for now. I see this as a fey version of the dollar spark-off last (northern) summer.
My limit order came within five PIPs of execution before the BoE bombardment, fun times.
That had to happen. Shit. That was the closest we’ve come to a game ending move in a while. In recent memory, anyway.
Iceland is one thing. Britain is another thing altogether.