The British Pound is doomed. Three years ago, while doing our ResonanceFM 104.4 show, “The Truth About Markets,” Stacy and I commented on news that Bradford & Bingley was offering customers 120% mortgages. At the time we pointed out that this was guaranteed to bankrupt B&B and the entire banking sector if they were allowed to continue locking in negative equity deals for customers who were clearly being victimized by predatory lending and banking abuse. Sure enough B&B needed a bailout and that extra 20% on top of the 100% mortgage that the UK tax payer is paying for – is now providing leverage for short sellers to continue to attack the British Pound. The remedy? Halifax just announced 120% re-mortgages for home owners in negative equity. More debt to get out of debt. Reminds me of the woman in Terry Gilliam’s “Brazil” who plastic surgeried herself to death. The British pound, after its recent ‘dead cat bounce’ is a one way bet down as banks are permitted, without any government intervention, to hollow out Britain’s economy unchallenged by law or common sense.
Tags: blog · bradford & bingley · halifax · max keiser · negative equity10 Comments
![[Most Recent Quotes from www.kitco.com]](http://www.weblinks247.com/indexes/idx24_usd_en_2.gif)
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/charts/metals/gold/t24_au_en_usoz_2.gif)
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/charts/metals/silver/t24_ag_en_usoz_2.gif)
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/charts/metals/gold/t24_au_en_euoz_2.gif)
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/charts/metals/gold/t24_au_en_caoz_2.gif)
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/charts/metals/gold/t24_au_en_bpoz_2.gif)
Dear Max
While you have been spot on many things I am not sure you are on this one. Please understand I am no perma-bul, full signed up bear. I read “Crash proof” by Peter Schiff & am a client of his (mixed results it must be said).
Yes I agree that long term the UK faces problems, the “City” is going to have to re-invent its self. North Sea oil is also a worry but would the problem you & Schiff & Jim Rogers can’t get your head around is Britain is not like any other country!
Would you bet against the most inventive people in the history of the World?
Oh, we might face the slings & arrows of outrages fortune from time to time, but there something You, Rogers & Schiff forget…..”We (& US) MAKE THE RULES!”
On a level playing field we be screwed, but we ensure that it is NOT level…..That’s the trick.
The World runs on Banks & Governments…….not fact & figures!
BTW Check out the £ today
Cheers
Mike
Erm, Mike… are you really so confident?
How do you know that the pound is up, and it isn’t the dollar which just dropped?
Britain was sort of inventive – but not as much as some people claim, and that was before cctv, dna databases and Phorm. Any ideas now are soon stolen, tell a policeman and you get a baton round the chops.
Banks are free spirits now. Finance is borderless, but people are trapped behind borders. The nation state is being transformed, and demographics are being re-ordered. Banks run the world, and tell governments what to do.
In a world of SDR’s what is the pound anyway? A plugin to a matrix of fiat possibly. Well, the pound was always a legacy of the Roman occupation anyway – good riddance to it!
I agree with your closing points, the trick is to maintain an uneven playing field, and I am sure that is set to continue. I am not sure who the ‘We’ refers too.
I spent a lot of time thinking on this. “They” are in MEGA trouble, they risk the collapse of their power structure, Fanatical & Political. I think the “Plan” was to steal & rape China as they started to do to Russia.
Sadly (For them) Russia was able to regain control & China never allowed them in to start with. “They” are now faced with the results of attempting to over reach themselves….South America, Central America, Asia have slipped from their grasp…..so what to do?
1ST they must regroup, to this end “They” have decided that half the planet is better than none. I see a new world order of the Old Anglo-Saxon counties + Western Europe. I suspect they decide to then “baton down the hatches”.
The World wide wed will not be World wide, we can already see restrictions & monitoring of internet traffic. I expect “Internet 2” to be a very resistive indeed.
As for the value of currencies?………….They be fixed as will Gold.
Mike/Liverpool
Michael Jackson comes to mind? the fact that it does disturbs me.
I think I know who ‘they’ are, ‘they’ are the old order establishment. But who are ‘We’?
‘They’ are teaching their kids mandarin in schools rather than innovating with technology and engineering to regenerate the country they always held in contempt. ‘They’ are offering cut price british labour to offload mistakes ‘they’ made. ‘They’ are global citizens and are only in the UK thru economic convenience. ‘They’ will be alright whatever happens – but then that was always going to be the case. Unless those developing nations decide that it is unwise to do business with a subset of people who would sell their own mother in a faustian pact. A possibility.
So who is ‘We’?
@ Mike/Liverpool AHAHAHA LOL, you’re so WRONG! btw I don’t blame you for sticking up for your Country, if someone said the Aussie $/economy/whatever was going down the tube I’d defend it as well, but the fact is that no-one is above the law of supply and demand. Like they said in Jurassic Park, “nature always finds a way”… and nature dictates that if you print up pounds out of thin air, your currency gets devalued as a consequence.
“WE” is the Local version of “They”.
Truth is China set the trap 25 years ago, “They” walked into it…………only now do they see it.
“They” lost the fight for the Planet, “They” are split into 2 groups…..those whom know the game is up & those whom refuse point blank to give up their power.
There will be Blood.
Mike
To Mike/Liverpool.
You say China set the trap 25 years ago – what do you mean? What trap was that?
BTW I do agree that “they” have/are losing power possibly because, as usual, they have overplayed their hand. In the past “they” have got away with it but I get the impression that “they” are now much weaker – perhaps it is time for us to strike? I can’t even say why I think “they” are losing power, I just get that feeling. Anyway, that is why I asked about the trap set by China. I would like to know the details regarding their loss of power – can anyone enlighten me?
I don’t think China set a trap. Greedy City types loved to go to China in the early eighties and return extolling the virtues of using slave trade to help maximise profit.
The table eventually turns. The slave becomes the master if the slave is wise. China now holds the cards as does most of the developing world. So those who sold us all out are now ingratiating themselves with the Chinese.
Mike reckons it will end in blood. Probably. The Chinese understand that an end is only a new beginning.
He also shifts from referring to himself as ‘we’ when referring to the class who maintained the unleveled playing field, to ‘they’. Whereas Sharon, you use ‘us’.
Mike: Have you seen ‘Mephisto’ ? you really should.
Thanks, i Google it later.
Zbigniew Brzeinski gave a speech at Chatiun House a while back…………at the end he said that the World had be ruled by what he called the “Atlantic powers” since the mid 16th century………….he then went on to say that this is now changing ….the power is changing…..moving to Asia.
Mike