ongoing attempts at having a new global reserve currency

Andrew64

On my travels round the old Eastern Bloc in the 80s, I found that the reserve currency in places like Bulgaria was packets of Marlboro fags!;)

Reaper

crazygaijin wrote: »

The value of the pound is collapsing yet again

No it's not. Why do you say that?

* Yen: Here is a graph for the Yen over the last three months - it's pretty much unchanged.
* Dollar: Over the last week the pound is up sharply against the dollar because of this news.
* Euro: Not doing so well against the Euro but I predict it will. It's just because they have been slow to drop interest rates and are resistant to QE. It's only a matter of time before they give in on both.

bubblesmoney

Andrew64 wrote: »

On my travels round the old Eastern Bloc in the 80s, I found that the reserve currency in places like Bulgaria was packets of Marlboro fags!;)

this happened in USSR around the time of its breakup as well. i knew some people who topped some talent search competitions in india and under some bilateral exchange programs they went to study medicine in USSR before the collapse. their fees were fixed etc. but next year or so the USSR collapsed and the ensuing entities reneged on the fees etc and massively increased the fees for these students, also living costs hugely shot up for them and it became dangerous due to the crime levels there during the crisis. many of them had to abandon their studies and flee back to india and start all over again after a lost a couple of years of their education as a result.

some of them told me long ago that things got so bad they would get stopped on the street and cigarettes would get taken off them or people would stop them and say they need the cigarettes and to take their girlfriends in exchange for some time as payment! obviously these guys had to empty their pockets and run back to their hostels and they left soon after from there. think the indian govt had to pull strings for them to be even able to get out of those places then. these guys i briefly knew were happy to just get out of there alive even if they lost a year or two of their studies and had to start all over again. these people were toppers on the academic front but still lost out due to the circumstances then.

crazygaijin

Reaper wrote: »

No it's not. Why do you say that?

* Yen: Here is a graph for the Yen over the last three months - it's pretty much unchanged.
* Dollar: Over the last week the pound is up sharply against the dollar because of this news.
* Euro: Not doing so well against the Euro but I predict it will. It's just because they have been slow to drop interest rates and are resistant to QE. It's only a matter of time before they give in on both.

I quoted moneyweek if you dont agree take it up with them.

Thanks for the graph though very interesting.

Dont you think though that the future of the pound is not looking good?

Reaper

I do apologise, I somehow read through your post without seeing the link, I didn't realise you were quoting Money Week rather than expressing your own view.

As to the future of the pound - if everything that was happening was just to the UK then yes, the currency outlook woud be grim. However with everybody elses economies just as bad there isn't an obvious currency of safety for the markets money.

I don't expect the pound to change much more. If will just fluctuate depending on whether the latest piece of bad news is at home or abroad until one economy starts to come out of recession, then all the money will pile in there.

bubblesmoney

just a follow on post about the topic

China Takes Aim at Dollar