| A strong national currency is often deemed to be | | | | seem to have become accepted wisdom in the |
| a symbol of economic virility. That being the case, | | | | mainstream press with nary a croak of dissension |
| the pound sterling has been looking so flaccid of | | | | in evidence. |
| late that you'd be forgiven for thinking it had lost | | | | Why is that I wonder? The reason for inflation's |
| its supply of Viagra tablets down the back of the | | | | relentless rise is staring them in the face but |
| sofa. | | | | these jumped-up hacks who call themselves |
| Since its last peak against the Euro in December | | | | economists are willfully ignoring it. Nowhere have I |
| 2008 the pound is now down around 11% and | | | | seen any of them acknowledge that it is the |
| relative to the lofty heights it managed to scale | | | | deliberate policy of our government and the |
| against the US dollar back in November 2007 it's | | | | banking elite to bail out said banking elite by |
| taken a confidence-sapping hit of almost 25%! | | | | devaluing the pound and thus increasing the cost |
| I suspect this droop in the pound's relative | | | | of food and essentials for ordinary hard-working |
| performance against a basket of the world's | | | | citizens. That simple but scandalous fact should be |
| major currencies may have some deep underlying | | | | printed in foot-high headlines in every newspaper |
| problems - such as continued abuse from | | | | in the land, but for some reason, the press |
| politicians over a number of years. In fact, if I | | | | seems to be mute on this particular subject. |
| were the pound, I'd be bombarding our Chancellor | | | | I fear the all too obvious conclusion, is that, in a |
| of the Exchequer with text messages by now | | | | country that likes to pride itself on being the |
| asking: "How could you treat me like this Darling?!" | | | | world's oldest democracy, a subtle but very |
| So how did things come to this sorry pass? | | | | sinister form of press censorship now holds sway. |
| In a nutshell, the international capital markets are | | | | I'll leave you to ponder the implications of this |
| slowly waking up to the fact that Britain, (along | | | | development, but in the meantime, short of |
| with most Western countries) is technically | | | | insurrection, what can you do to protect yourself? |
| bankrupt. As a result, investors have decided to | | | | Well, it would be nice to think that if we all just |
| trade in their sagging pounds for more enticing | | | | saved a few more pounds each week we might |
| prospects overseas that aren't weighed down by | | | | be able to protect our standard of living and |
| decades of accumulated nanny-state baggage, | | | | negate the effects of rising food prices. |
| gargantuan levels of debt - both public and private | | | | As I've pointed out, however, our government |
| - and rising comparative tax rates. | | | | and the bankers have other ideas. They will |
| Much as it pains me, I have to say that a clear, | | | | ensure that your pounds lose value at an |
| long-term trend is now in place: the poor old | | | | ever-increasing rate - perhaps catastrophically so |
| pound is past its peak and it's all down-hill from | | | | if some as yet unforeseen catalyst causes |
| here. | | | | investors to suddenly lose all confidence in the |
| Investors are also waking up to the fact that | | | | value and viability of the pound. |
| cash-strapped governments like ours have | | | | The only answer is to gradually convert the bulk |
| decided that the only way they can ever hope to | | | | of your cash savings into the essentials of life i.e. |
| claw their way out of the bottomless pit of debt | | | | commodities and tangible things like food, oil, |
| that they've dug is to print their way out of it. | | | | metals and, most important of all, precious metals |
| Note the £200 billion worth of "quantitative | | | | which have acted as a store of value for 5000 |
| easing" recently injected into the economy by the | | | | years. I say 'gradually' but don't take too long |
| Bank of England - and, judging by recent | | | | over it. My instincts tell me that time is running |
| statements by the Bank Governor, Mervyn King, | | | | out and it won't be long before it's the UK's turn |
| it looks like there's going to be plenty more where | | | | to get the 'Greek treatment' and be used as the |
| that came from. | | | | world's financial punch-bag. |
| All this money printing is also happening against | | | | By launching my website, my aim is to make the |
| the background of a bank base rate of just 0.5% | | | | process of conversion into real assets as smooth |
| - the lowest in our history. | | | | and painless as possible for you and I hope you'll |
| It's as though the UK authorities are actively doing | | | | become a frequent visitor. A quick look at the |
| everything in their power to trash the value of | | | | portfolio page of my site (free of charge for |
| our national currency - a reckless move when | | | | now) should reassure you that I and my readers |
| you consider that this is the currency we hope | | | | are well positioned to protect ourselves from |
| foreigners will continue to accept in exchange for | | | | anything the currency speculators might throw at |
| nearly half our food (42% of our food is | | | | us. |
| imported), not to mention many more of life's | | | | So, my poor fellow UK citizens, I'll have to leave |
| little essentials. | | | | you this time around with a rather disturbing |
| As I've discussed in previous articles, inflation in | | | | thought: thanks to your government and the |
| the UK is on the rise and the (regularly | | | | bankers, the pound has now become impotent. |
| understated) CPI has, just as I feared, now hit | | | | It's an old has-been that's had its day in the sun |
| 3.5%. For years, mainstream economists have | | | | and no amount of financial aphrodisiac can |
| been spouting their arcane twaddle about 'output | | | | reinvigorate it. |
| gaps' in an attempt to persuade us that inflation is | | | | One thing's for sure; your money will never be |
| likely to remain low. What's more, their arguments | | | | the same again. |