Subj : Re: Russia's Endgame
To : Arelor
From : Andeddu
Date : Sat Oct 08 2022 04:58 pm
Re: Re: Russia's Endgame
By: Arelor to Andeddu on Fri Oct 07 2022 03:21 am
> I am out of the look. WHat has happened in the UK that I have missed?
The Pound Sterling dropped to its lowest value in the exchange rate vs the USD
at 1.03 per USD. The UK's pensions industry is basically a ponzi scheme using
borrowed money as there are no safe investment opportunities that give a good
return on investment due to the extremely low interest rates we have had over
the last 15 years. Most investment firms have to provide a 6 percent return
which is impossible, however the pensions industry have used clients money to
borrow far more cash which they have then spent in the UK government bonds
market to bring in a more suitable return. The low pound meant that banks and
creditors were issuing margin calls which the pension funds could not pay as
they were so highly leveraged, and so the whole industry almost came crumbling
down along with all private pensions. The Bank of England (BoE) intervened by
printing money and purchasing goverment bonds to stabilise the currency once
again. As we know, there is only so much money you can print before inflation
becomes a huge issue. They are unable to carry out quantitiative tightening now
to combat inflation as they have made it monetary policy to carry out
quantitative easing. Hyper-inflation will occur as the goverment are completely
out of ideas on how to tackle the mess they've found themselves in.
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