The End of Sterling Strategies?

Trading Discussion
1

Peter Mandelson (Britain’s Business Secretary) has today announced that Britain will one day move over to the euro. Certainly no date has been set and it may well be in the distant future, but just the mention of this sends chills down my spine (and not just because I am an English man through and through).

But what does this mean for all of us that trade pairs where sterling is one of the currencies? Surely that will be the end of the road and we will need to develop new strategies for other pairs. I for one have spent a long time developing a strategy that delivers consistent profits so the thought of having to start all over again fills me with horror!

I would be interested to know what other peoples thoughts are on this matter.

Mike

2

Its a 2 way profit move, long or short. If the pound sterling will improve, it doesnt really stop you from trading with your old strategies. However, you may need to make some modifications and follow the trend because its always your friend. You also have to detach sentiments and pressure because it also stands as a major drawback when trading. If you have a trading plan, it will also give you and edge in the market. Even during the recession, people made huge profits all the way. I hope my little contribution helps you bro!

Best regards,

pipo

3

Peter Mandelson (Britain’s Business Secretary) has today announced that Britain will [B]one day move over to the euro[/B]. Certainly [B]no date has been set and it may well be in the distant future[/B], but just the mention of this sends chills down my spine (and not just because I am an English man through and through).

That’s correct.
GBP will be absorbed by the EURO & so will be the Swiss Franc.
Global Central Banks, IMF & BIS call that Plan B.

This is what ECB Vice Chairman Axel Weber said at Davos –

[I]"Global economic collapse is now inevitable and the bailout of the state debt of the so-called PIIGS (Portugal, Ireland, Iceland, Greece and Spain) will be merely another “bandaid” solution or “sticking plaster” ".[/I]

The timeline depends on for how long the “bandaid” solution of sovereign debt restructuring can be maintained without shaking the confidence of so-called first country debt holders.

But what does this mean for all of us that trade pairs where sterling is one of the currencies?

There seems to be a lot more in the pipeline as the Central Banks, IMF & BIS are letting out to the media.

4

Now now used, take it easy :wink:

My imagination may be able to fathom the UK giving up their pound some extra rainy day, but the Swiss… no way.

Remember these are the same people who absolutely refuse to join anything, anywhere, ever. Making a list of things that the Swiss are members of is pretty easy…
Based on nothing but my gut feeling, I can’t imagine any scenario that would ever take Switzerland into the EU and much less the EURO.

5

Now now used, take it easy :wink:

I am easy. :wink:

My imagination may be able to fathom the UK giving up their pound some extra rainy day, but the Swiss… no way.

One day you’ll remember my post. :slight_smile:

If you like, please do some research in regards to UBS & Credit Suisse & their liabilities. Compare those findings with the annual GDP of Switzerland.

Also, look at the agreements between the New York Mellon FED & the Swiss National Bank.

You might think a little different after doing above research.

Remember these are the same people who absolutely refuse to join anything, anywhere, ever. Making a list of things that the Swiss are members of is pretty easy…

The Swiss people think like that but not their politicans & bankers. And they might not have a choice in the not so distant future.
Remember the BIS – The Banker’s Bank is located in Basel, Switzerland.

Based on nothing but my gut feeling, I can’t imagine any scenario that would ever take Switzerland into the EU and much less the EURO.

If this global sovereign debt restructuring comes to the end of it’s road & it will once there is no country left to bailout other countries you’ll see some real surprises.

All what’s left is the timeline & for how long they are able to juggle it.

6

I certainly will if that happens.

Though I hope you’re wrong, I wouldn’t dare to bet money on it.

Maybe we’ll all be paying our groceries in ameros someday… better that than yuans or rubels… but still.

7

I certainly will if that happens.

It won’t be the end of the world. :slight_smile:

Though I hope you’re wrong, I wouldn’t [B]dare to bet money[/B] on it.

Well, I laid bets on it since 2001 & increasing positions ever since.

Maybe we’ll all be paying our groceries in ameros someday… better that than yuans or rubels… but still.

I don’t think so.
They’ll pull a surprise out of the hat & get rid of this mountains of globally accumulated debt. They’ve done it before.

8

Man I hope all this stuff happens. Imagine how liquid the Euro/Amero pair would be! They wouldn’t even need a spread on that pair! :eek:

9

Interesting thread because right now when newspapers discuss the Euro here in Canada, the possibility of it being abolished has been raised. The reason of course being the Germans don’t want to become the banker of last resort to the weaker members of the union. Also we hear rumblings from Italy and France that they would prefer to have their own currencies back and if it came to a vote, they would be out. It seems the only ones happy with the Euro are the small struggling countries.

I think all the posters here are from Europe, so I thought I might provide a different perspective and see what the reaction was.

11

Sweden voted no when we had our referendum some years back whether to join the EMU (euro cooperation). This took our elite politicians by surprise and it was clear that the peoples vote was not to their liking. This was true for both the leftish and rightish sides in politics.

During this current crisis many are now becoming aware that this, and probably much worse, is what can happen if we give up our right to run a central bank of our own.

Politicians however are apparently immune and they have, if anything, taken this as an excuse to argue that a small country like Sweden needs to join.

It’s really quite pathetic, but since people are sheep, I guess it’s just a matter of years until our wonderful politicians get their way in a second referendum.

That’s my Swedish perspective.

12

Let me issue and control a Nation’s money and I care not who makes its laws.
– Mayer Amschel Rothschild

Prophetic, and frightening words from the father of modern central banking.

I wonder if the euro was just a bit premature.

I don’t think people of neighboring countries are ready to assume the debt of another nation’s insolvency.

Time will tell.

13

Interesting thread because right now when newspapers discuss the Euro here in Canada, the possibility of it being abolished has been raised.

The Talking Heads & Media are not being told what IMF, BIS & Global Central Banks are planning to do.

The reason of course being the Germans don’t want to become the banker of last resort to the weaker members of the union.

What the German’s want & don’t want doesn’t matter.

ECB Vice Chairman A. Weber has spelled it out at Davos:
[I]"Global economic collapse is now inevitable and the bailout of the state debt of the so-called PIIGS (Portugal, Ireland, Iceland, Greece and Spain) will be merely another “bandaid” solution or “sticking plaster” ".[/I]

French, German & Swiss banks are holding the junk papers from the so-called PIIGS on their balance sheets. Liabilities turned into “assets” & restructured with taxpayers money from the Germans, French & Swiss.

There are 8 so-called First Nation [World] countries –

  • USA
  • Canada
  • UK
  • France
  • Germany
  • Switzerland
  • Japan
  • Australia

Above countries are able to keep this global sovereign debt restructuring process going for the time being.

Once this crisis of debt has infected above nations the end of the road is there.

A sign that we might be nearer to the end of the road than we think & imagine is the plan of the BoE <-> FED <-> BoJ to come to some sort of arrangement for moving sovereign debt of the respective countries in between each other’s balance sheets.

Also we hear rumblings from Italy and France that they would prefer to have their own currencies back and if it came to a vote, they would be out.

A reduction of currencies is wanted [needed] & NOT an increase of currencies.

It seems the only ones happy with the Euro are the small struggling countries.

Germany & France have benefited the most from the EURO & it’s in their interest for the EURO to continue.
Social WelfarISM would have been abonded in those two counties a long time ago if it wasn’t for the EURO.

14

all i can say is… time will tell.

15

… time will tell.

They [First Nation States/Countries] [B]KNOW[/B] what’s coming.
There is no question about it.

[B]Bernanke delivers blunt warning on U.S. debt[/B]

[I][U]With uncharacteristic bluntness, Federal Reserve Chairman Ben S. Bernanke warned Congress on Wednesday that the United States could soon face a debt crisis like the one in Greece[/U], and declared that the central bank will not help legislators by printing money to pay for the ballooning federal debt.[/I]

Bernanke delivers blunt warning on U.S. debt - Washington Times

The way BIS, IMF & Global Central Banks are dealing with it to avert inevitable global economic collapse determines the timeline.
They KNOW that hope can’t solve this crisis of Sovereign debt & they KNOW that they will sink together UNLESS they are going to pull a surprise.

These people are NOT stupid. :slight_smile:

16

No they aren’t.
It’s the other side of the government spending coin I worry about;)