HSBC Warns of Hot Money Exodus from Britain Under ‘Siege’
October 6th, 2007“Sterling holders, consider reducing or eliminating your exposure to GBP denominated assets immediately.”
—Cryptogon, September 18th, 2007
Via: Telegraph:
HSBC, Britain’s biggest bank, has warned that Britain faces a stark “de-rating” by investors in coming months as growth slows and funds begin to lose confidence in the country’s economic management, triggering a mass exodus of “hot money” from the City.
“Sterling’s outlook is increasingly taking a turn for the worse. A deeper downward move against a broad range of currencies is on the horizon,” said the bank in a new report, “Kingdom Under Siege”.
It expects the pound to fall from around $2.04 to $1.76 against the dollar over the next eighteen months, even though the dollar itself is in danger of losing its status as the world’s “anchor currency”.
David Bloom, HSBC’s head of currency research, said signs that the Bank of England’s monetary framework was “starting to fray at the edges” had begun to unsettle investors, tarnishing the City’s reputation. Both the Northern Rock debacle and the decision by the Monetary Policy Committee to overrule the Governor in setting interest rates have inflicted damage.
Yep, it all goes down the pan. The recommendation for holding gold (and sliver!!) never gets old.
The whole problem the wold currently has with money, is that we see it in the wrong way. We claim ownership over it. Instead we should be looking at the energy which money symbolically represents:
http://www.thethoughts.co.uk/thoughts/paper-gold-silver-and-money/