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BA Deere
Honored Advisor

Sound as the Pound

Stories abound of Britain and Japan struggling with effects of the US Dollar strength and rising interest rates.   And those are a couple of the more better off countries in the world.   When we sneeze the world catches cold.

https://www.cnbc.com/2022/09/26/sterling-hits-record-low-against-the-dollar-as-other-asia-pacific-cu...  

POINTS
  • Sterling’s plunge comes after last week’s announcement by the new U.K. government that it would implement tax cuts and investment incentives to boost growth.
  • Critics say those economic measures will disproportionately benefit the wealthy and could see the U.K. take on high levels of debt at a time of rising interest rates.
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VIDEO01:24
UK’s latest budget includes the biggest tax cuts in 50 years
 

The British pound plunged to a record low on Monday morning in Asia, following last week’s announcement by the new U.K. government that it would implement tax cuts and investment incentives to boost growth.

Sterling briefly fell 4% to an all-time low of $1.0382 on Monday, continuing its sluggish trade in recent months as the U.S. dollar strengthens. The U.K. currency last traded down about 1.5% $1.069 against the greenback.

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5 Replies
rsbs
Senior Advisor

Re: Sound as the Pound

I wish I could see the long term plan of Fed Chairman Powell, if indeed there is a long term plan. High interest rates will plunge the USA into a recession, if we are not already in one. My stock portfolio is invested in dividend paying companies, weighted heavily on consumer demand driven stocks. They are getting hammered right now, and may not be over water again anytime soon. You can sense fear creeping in the 

I am lucky in that I don't have to borrow any new money at 7 percent or more ( 3.5 to 4.5 ten year notes right now) and those that do will see their profit margins disappear as we all wrestle with rising prices. It is unreal how much things vary right now. Priced a 25 foot combine sickle at CNH and it was $975.....at Shoup it is $470. Less than half the price......you really pay for the dealership stamp.

Bad times don't break a lot of farmers...what does us in is the mistakes we make during the good times. 

sw363535
Honored Advisor

Re: Sound as the Pound

Critics always hate the rich for being rich.... and wonder where workers can get jobs................Critics get far too much press time and usually have nothing wise to say.

k-289
Esteemed Advisor

Re: Sound as the Pound

Exhibit   1  -  Plantation  owners  here in  the  need  of  cheap  labor  a  few  century's  ago  - OR  Moses  journey  in  the  book  of  Exodus  -  Maybe  ?   ?  ? 

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sw363535
Honored Advisor

Re: Sound as the Pound

Did Moses have to move because his people were too rich

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k-289
Esteemed Advisor

Re: Sound as the Pound

Maybe  there  was  too  much ,  arrogance  of  privilege  ,  on  one  side  =? =? =?       

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