Friday, February 26, 2010

British pound to collapse?

"... Jim Rogers has predicted that the British Pound could completely collapse within weeks, sending shockwaves throughout the global economy and heralding the beginning of a downturn that would make the recent economic crisis look tame in comparison..."
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Comment: Whether Jim said it or not, let's not exclude the possibility that the hot talk about the PIIGS and about the (financially rather unimportant Greece) was just a side show to turn attention away from the more imminent danger and the much more large danger: the collapse of the British pound. This leads us to consider buying euros against the pound - sell all credit insurance vehicle on Greece and those of the rest of the PIIGS and buy as much credit insurance as you can get on British liabilites as long as the first group is still extremely expensive and the second group is still unreasonably cheap. Nevertheless, I still expect that the showdown will happen in the US later this year.

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