Miltiades:
The fall is due entirely on the Brexit result. Not speculators as you persistently claim.
I disagree with you, that is an excuse! Look at the currency changes over the last week ..... all down for the pound but what happens on Friday evening (
and every week)? It flat lines for the weekend, there is no speculation ......... the speculators are all spending the money they have made so there is no human trading but the computers are still live!
Currency fluctuations due to economic factors are small changes but over a long time scale, it is more like gentle waves with a trend value changing over time. What you see on the graph ......... spikes up and down ....... it is a short time base change, therefore is not due to economic factors.
Without exemption all economic indicators point to a reduction in economic investment and to a more than likely recession in 2017.
There will be a period of uncertainty no doubt but, a crash of the economy and a recession in 2017 is the same message from the same speculators. There are many forecasters who actually see the Global economy and the financial system tanking in the next few months and all the indicators are there. It is not JUST speculation.
As you correctly say, those of us paid in sterling are feeling the pinch but I believe this will be short term.
You seem to have a fixation with speculators forgetting that all markets are determined by speculators, this is how it always was and always will be.
Of course speculators determine the markets but ..... the markets, just like banking are NOT part of the real economy. They are the financial market economy and reflect only the buying and selling value of pieces of paper called ‘
Shares’ which have no intrinsic value. The rise or fall of share values does not affect the company whose name is on the certificate! But, if they tried to sell at any value ..... the price falls. Too much, too quickly and the shares will crash and cease to have any value.
IMO: You are in for a shock because things are going to change. There is a growing movement for a change to the existing system and it is becoming abundantly evident that the current system benefits the rich and makes the poor pay. There are more poor people than rich people and eventually they will force that change.
Look at what I posted about QE. If you take the trouble to find out how it works you will I am sure, be smart enough to work out that as it has been used in the past and how the BoE proposes to do again ...... it favours
ONLY the banks and financial institutions.
But there is a perfectly sound and workable alternative that
WILL enrich the economy and that is to change the source of money creation in any form, from it being created by private commercial banks, to being the sole prerogative of the Central Bank (
BoE). As Corbyn and many economists point out Overt Money Creation (
QE for the people) can boost the economy by creating jobs, helping small businesses and big ones, improve infrastructure, restart the UK’s manufacturing industries and boost social services. All achieved without creating debt, without the penalty of usury (
Interest) and without causing inflation. It is easily introduced and would have an immediate effect. Our exit from the control of the EU Federalists could give us that opportunity but will it happen?
I very much doubt it, but not because it is not a sound fiscal policy, but because it would smash the banks influence to them being a mere service, an intermediary between Government (
The Lender) and the people and industries (
The Borrowers). To do this, among other steps, you need to separate the Investment banks from the Commercial banks to prevent the tax payers or the commercial banks clients, from having to pick up the tab when the Investment (
Cowboy) banks fail. At the moment all the profits go to the banks when they are on a high but when their schemes fail, they become true socialists and expect others to bail them out. All this would stop overnight ........ and the Bankers will fight tooth and nail to prevent that happening.
I still believe that ‘
leave’ was the right choice and time will show that to be true.
