Waah... paper losses... GBP inaanguka kama panty ya Julie akiona Guka

Its because the Bank of England slashed rates to their all time low of 0.1% and launched 200 billion pounds of QE and this new money creation resulted in the pounds fall especially against the rising reserve currency of the USD despite the Fed printing trillions.

The Australian Dollar (AUD) has seen even more carnage than the Pound Sterling with the AUD/USD rate falling from 0.67 to a low of 0.55 (weakest since 2002)but closed on Friday at 0.58.Just like the Fed and Bank of England (lets just say all first world central banks) the Reserve Bank of Australia also cut rates for 0.5% to 0.25% and for the first time in Aussie history they launched QE

Its good to be the reserve currency where Fed can cut rates to 0% and unleash trillions of liquidity and the USD still risesagainst all other currencies.Though the USD strength is hurting the global economy especially emerging economies drowning in USD denominated debt.Some pundits postulate a meeting of the top global financial honchos of G7 and/or G20 will be arranged soon to plan a controlled devaluation of the USD just like the Plaza accord of September 1985

These markets will kill people. The whipsaw action is unforgiving. Gold now trading above $1600 as most metals appreciate quick and fast taking advantage of slight dollar weakness.

USDJPY. Triangle scenario. Wave B of (D) in progress. I expect the pair to fall to 106.44 or 105.30 before turning UP to levels above 114.00s

Gold is the ultimate safe heaven from this central bank fiat money printing madness.It initially sold with the rest of the market as it was a liquid asset during the liquidity crunch to meet margin calls from from other falling assets like general equities.Talk of throwing out the baby with the bath water.Now gold is responding to the trillions of currency being created from debt and nothing.Long term its expected to go much higher and take out its 2011 all time highs of 1900.Its still massively overvalued considering all the fiat being conjured up.

If we could only go back to a gold standard that limits the ability of central banks to just print money.As history shows fiat currencies always fail and this current fiat regime wont be different.There have been numerous cycles for thousands of years from gold to fiat and back to gold and maybe that rhythm will repeat itself