"Wow." That's the word that describes the massive decline in the British pound since we said "look out below" last month.
On February 6, we showed you a chart of the impending breakdown in the value of Britain's paper currency, the pound. Britain's government is a world leader in excessive spending and excessive debt. Since "there ain't no such thing as a free lunch," it was only reasonable to expect the breakdown to lead to more pound weakness.
But even we didn't expect the clobbering you see in the chart below, which shows the past year's trading in FXB, a fund that tracks the British pound. FXB has lost 4.3% in the past month. While this doesn't sound like much, it's an enormous fall for a major currency... one millions of people must use to carry out basic transactions.
Currencies are the aircraft carriers of the financial world. Once they get a head of steam built up and begin trending, they take a long time to change course... so currency traders can continue to take a bearish bias here. Or you could take the excellent "sleep at night" currency advice from our colleague Porter Stansberry and simply trade paper pounds for gold and silver.
On February 6, we showed you a chart of the impending breakdown in the value of Britain's paper currency, the pound. Britain's government is a world leader in excessive spending and excessive debt. Since "there ain't no such thing as a free lunch," it was only reasonable to expect the breakdown to lead to more pound weakness.
But even we didn't expect the clobbering you see in the chart below, which shows the past year's trading in FXB, a fund that tracks the British pound. FXB has lost 4.3% in the past month. While this doesn't sound like much, it's an enormous fall for a major currency... one millions of people must use to carry out basic transactions.
Currencies are the aircraft carriers of the financial world. Once they get a head of steam built up and begin trending, they take a long time to change course... so currency traders can continue to take a bearish bias here. Or you could take the excellent "sleep at night" currency advice from our colleague Porter Stansberry and simply trade paper pounds for gold and silver.
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