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January 17th, 2017, 10:09
#11
Re: The falling pound
Discussing who is at fault is surely a secondary issue. The fact is that various factors account for currency movements and those who gamble on future movements are in a crap game.
For whatever reasons, the pound has tanked. But remember it has tanked before. Back in the 1980s it got so close to parity with the US$ that Margaret Thatcher had to persuade the Sultan of Brunei to buy sterling and avoid a total crisis. In the same decade, pressure from the Reagan administration forced the Japanese to increase the value of the ¥. From almost ¥260 to US$1 it rose to ¥110. Some suggest this was a part of the reason for the Japanese recession which was to last for over 20 years.
I'm thankful I learned the lesson early. I lived in Japan for two years as the ¥ was rising but was paid in US$. Not that it affected me much as I was on expatriate terms and allowances and so shielded from the worst effects. But it was a good lesson with a view to eventual retirement. For the time being most of my funds are in Hong Kong in HK$ which is linked to the US$. Soon I will diversify. Thankfully very little of my income comes out of the UK.
I agree entirely with goji. Anyone planning to retire in Asia should start building up assets within Asia as early as possible. Let's just be thankful that we're not Brits living in Malaysia because the Ringgit is also tanking!
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User who gave Like to post:
christianpfc (January 18th, 2017)
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