What the hell is the Central Bank of England doing?
- The British government announces the biggest tax cut in 50 years (leaving Thatcher as an amateur).
- 51,000 million euros less of income for the Government while proposing a large increase in public spending.
- Beyond the fact that the cut is for the rich and not for the poor (€180 vs. 0.15 cents), it is a measure to fight the recession and revive the economy.
- The Bank of England has raised rates by 2.25% (the highest in 14 years).
- The English debt soars, from 161,000 million in April to 234,000 in September, it does not seem that borrowing more is a good idea. And rates will keep on raising.
- This directly impacts the value of the Pound (it has lost more than 20% against the dollar, a year ago it was at 1.38, today it is at 1.08).
Not only is the pound falling, so is the euro, but the question is, how much more does it have to fall?
According to this analysis, the euro still has 10% to correct. For the pound it’s 20% more!!
But then Why is the Bank of England accepting this huge reduction of taxes??
We don’t have confirmation, it’s only a speculation, but some pension funds could be really in trouble in the UK. They could become insolvent due to the huge margin calls they can’t meet after massive moves in the 30Y bonds.
In the next few weeks I bet the words “stability of the system” will be on everyone’s lips, to justify the most socialist measures in the capitalist systems, the distribution of the losses of the financial system among all citizens.
But let me look back for a moment:
Really? Cryptocurrencies are the problem?? That was your advice bank of England?
I’m not happy to see the fall of the financial traditional system. I’m worried. Our Crypto Fund Belobaba results in 2022 by now it’s -3%. I’m very happy to be in crypto. It’s true that BTC has fallen -58% since the beginning of the year. But for me, considering it’s volatility, it is far more steady and has more probabilities to survive than ever.
As someone wrote on the building facade of the Bank of England on May 2021: BITCOIN FIXES THIS
By the way, three days ago, on 26th September, Bitcoin beated the British Pound in trading volume!!https://www.linkedin.com/embeds/publishingEmbed.html?articleId=7827399711793657176&li_theme=light
CoinShares director of research James Butterfill said “When a fiat currency is threatened, investors start to flock to Bitcoin”.
You are wellcome.
Yours in crypto.