Some of you will have woken up to newspaper headlines extolling the wonders of the ‘Big O’ and its promises to make the earth move for you too – the world watches as Obama achieves the ‘Big O’. Sex used to be such a private activity.
Others will be trailing their fingers across headlines spelling doom and despair as the banking crisis drags the UK gurgling down the plug hole. The pound crashed to its lowest levels since 2001 – partly on the words on one man. Barack Obama? Nope. Gordon Brown? Nope, despite his delusions, the past few weeks have proved that his words alone are not enough to influence the markets – if they were, we might not be in trouble. No, the man involved is called Jim Rogers, and his statement to Bloomberg news,
‘I would urge you to sell any sterling you might have. It’s finished. I hate to say it but I would not put any money in the UK.’
was flashed around the world’s money markets in seconds with the result was that the pound was in reverse against all 16 major actively-traded currencies.
You may well ask ‘who is this man’ whose apocalyptic words wield more power than Presidents or Prime Ministers? He is a past partner of George Soros. In 1992 the pair of them joined forces to bet against the pound, and made an estimated £1 billion pounds doing so. Naturally they were betting that the value of the pound would fall.
When you hear this investment broker tell the world to ‘sell sterling – it is finished’, you might usefully enquire whether he has placed another bet that the value of sterling will fall again.