Anton Kreil - Institute of trading.

Long, short, Bitcoin, forex - Plenty of alternate market disuccsion.
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Iron
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Let's say we borrow a billion pounds at x% interest.

Whether the pound trades at $1 per pound or $10 per pound, we still borrowed the same amount of money, and we are still repaying the same amount of money. The only advantage is that, if we are using the borrowed money to import stuff, it will go further.

Jeff
Naffman wrote:Most of UK's debt comes from borrowing from OS institutions. Therefore, we will need less pounds to pay off these debts as it has become stronger in comparison to the institutions' local currency.
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Iron
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Naffman wrote:Looking back, I think I should have started out by saying that there are both advantages and disadvantages with a strong currency ;)
Bless. :)
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Naffman
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If we look at the AUD/GBP, it hit 0.58 a week ago, now it is into 0.55, meaning the pound has become stronger. That means if we borrowed from Australia, we had to pay 58p per $A we borrowed, now we only have to pay 55p per $A, meaning we are paying less on our overseas debt. I believe this right, otherwise my HSC Economics was a waste of time :lol:
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Iron
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But if Australia wanted to buy UK gilts, wouldn't they pay in pounds?

Not saying you're wrong, btw. :)

Jeff
Naffman wrote:If we look at the AUD/GBP, it hit 0.58 a week ago, now it is into 0.55, meaning the pound has become stronger. That means if we borrowed from Australia, we had to pay 58p per $A we borrowed, now we only have to pay 55p per $A, meaning we are paying less on our overseas debt. I believe this right, otherwise my HSC Economics was a waste of time :lol:
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Naffman
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I'm confused now :lol:
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Iron
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My understanding is that, if the UK government wants to borrow from abroad, it would issue bonds, which people from Australia and elsewhere could pay for in pounds.

It wouldn't ask the Australian government to lend it money in Australian dollars, which it would then convert into pounds via the Forex markets.

That's my understanding anyway, but I could well be wrong. :)

Jeff
Naffman wrote:I'm confused now :lol:
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megarain
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I didnt know where to put this, so, as its finance, I put it here.

Its a 1hr long conversation with ex-top flight poker player, turned hedge fund manager.

http://traffic.libsyn.com/lifeafterpoke ... rasser.mp3
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