FROM RICHES TO RAGS - BRITISH PM EXPLODING WARDROBE

29 September 2024

From riches to rags.

                   Guy Fawkes day coming up...

"Sir Keir said last week he would no longer accept money for clothes"

Love it. It's only 'cos his wardrobe is already full to bursting.... and what must you do with old wardrobes on Guy Fawkes day?

This is so totally corrupt, inept and mad - did noone amongst all those clever politicians and their even cleverer advisors see this coming?

     Time for your annual checkup Sir Keith?

Wonder what garments and robes they'll be wearing for budget day.

        What are politicians really like?

https://www.telegraph.co.uk/politics/2024/09/28/rosie-duffield-labour-mp-quits/

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What are politicians really like?

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DOLLAR DOWN, CURRENCIES DECOUPLING

27 September 2024

Gold has been rising in US dollar terms but since April of this year has remained relatively stable or within a trading range when priced in BRICS and Global South currencies. To understand why, we need to understand the causes of dollar weakness and the attractions of gold in times of uncertainty.

As I interpret this graph, the price of gold in dollar terms is going up, on its way soon to $3,000, some say. 

This while the dollar, as measured against a basket of currencies (DXY), is weakening. This would likely be due to falling interest rates, But equally with the death of 35 trillion and interest payments Of over a trillion a year this cannot instill confidence in lenders Who were likely to ask for a greater risk premium, surely. 

Notice the decline since April this year. Gold, which pays nothing, becomes more attractive - this was the moment when rate cuts began to be talked about seriously. Also the time when the BRICS started talking about creating some alternative reserve currency and began moving towards de-dollarisation in their trading, especially after the geopolitical shifts caused by the Russia-Ukraine war.

Normally, currencies follow the dollar: 70-80% of int.l contracts are written in USD and staying more or less pegged keeps income and expenses in balance and avoids importing inflation. But we can see that the currencies of some countries of the global South are decoupling. Same against sterling.