From: "Crowley" 
Newsgroups: uk.politics.misc uk.finance
Subject: Re: Will sterling take a beating this week ?
Date: 27 Mar 2006 04:28:46 -0800
   posting-account=yGNAvw0AAABsgRsckUU2yFAQy4yH8Lsf


Mel Rowing wrote:
> mmaker@my-deja.com wrote:
> > Mel Rowing wrote:
> > > Current US inflation rate is running at 3.6%
> > > Current UK inflation rate is running at 2.4%
> >
> > But both of those numbers are fantasies.
> >
> > > Thus real return on the currencies are 4.75 - 3.6 = 1.15% ($)
> >
> > But the real rate of inflation in both countries is probably more like
> > 8%.
>
> Well if you believe that sell borrowed pounds for dollars and make (or
> lose) a lot of money.

Professional currency speculators are doing that sort of thing all the
time although from what I've seen the euro and the yen seem to be the
currencies presently tipped to emerge  stronger over time by many
dealers.

Huge trade and budget deficits  in the US and UK suggest that both
currencies may come under increasing pressure as global liquidity is
increasingly tightened so I wouldn't be rushing to exchange sterling
for dollars just yet.