Author Topic: Watch Out - Devaluation Possible Coming GB Sterling  (Read 350 times)

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Online Ron Besser

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Watch Out - Devaluation Possible Coming GB Sterling
« on: October 14, 2022, 04:32:31 pm »


Magisterial Son SERARA
Joint Finance Chairman MAGISTERIAL MISSION
The MAGISTERIAL FOUNDATION
T/R: Ron Besser
October 14, 2022 at 16:30 NY Time

“This is SERARA and you are the one who must receive this as no one else understands the implications more than you do Ron. In the past six weeks Great Britain has been severely trialed, first the death of her beloved Queen, Elizabeth II, the rise of the graft on British television of an Exchequer which has no real understanding of the crisis, and a full version of a Doxy on high called a Prime Minister who is over her head when it comes to financial policies. She never worked on them before and is deaf and dumb over their trials happening to the British Pound at this juncture of the history of the EU: (European Union).

“Our trust in the UK is not lost, but the Bank of England is strangling the use of currency by insisting it must remain solvent at a pro rata rate of $1.20 to the USD (United States Dollar). That is fool’s belief in that the passed it was saleable but in the present it is far too high given the fact that the British Pound is now worth about 65¢ without expanding the fact that the real value of the dollar today, compared to the 1997 dollar as worth 35¢. That thirty-five cents is today’s worth compared to the 1997 dollar in the United States in real terms.

“For that reason the ratio of the Pound Sterling/USD is about the same, as the Pound Sterling in 1997 was 2.08/1.00 the ration of approximately 2 to 1 (2/1) is still present in real terms. What the speculators have done is drawn a line around the dollar as too valuable to speculate with using the Pound Sterling to do it. As a result the Pound drops in value and is worth on the exchange market today (October 14, 2022 at 4PM NY DST) of 1.12889. That is a ratio of 0.89/1.00 or an inverted curve of about 1/1.1 and that is not fair to the Pound or to the Dollar.

“As a consequence one of the currency holders has to devalue their currency. GB devalued in 1997 and must devalue again in 2022 or lose their prestige as a Reserve Currency. You do not devalue the stronger currency when the yield curve for the British Pound inverts against the dollar.

“Consequently the NEW Chancellor of the Exchequer has a dicey situation to look at as he was appointed today as the old official left Washington DC to assure the Americans he would stay the course with is planned drop of taxes against British Corporations. Instead the British Parliament called upon the British Prime Minister to sack him and appoint someone who can handle the primary problem in Great Britain today, and that is the lack of fuel and the power of the General Electorate to fully understand what is happening to the global market since Covid19, saw to it that economies will be wrecked by standing down while people get cured from a viral disease.

“The last time this happened was in the 14th and 16th centuries when the blubonic plague did the same thing to the nation states at that time. It has happened again, and the United States should be able to ride it out EXCEPT it is inept in its monetary management, not because of Janet Yellen, but because the Federal Reserve now tightens monetary policy in the midst of deflation going on at a rapid rate already. Higher interests rates exacerbate the plow against the news that commodity prices are going to tank while oil and gas go through the roof shortly.

“Ron that should speak directly to your invention of WTP”, but the DOE is seriously under staffed now as Biden feels that energy is not the problem but that nuclear war threats trump energy as the issue. We disagree entirely but man is raw and humorless in the middle of a crisis and we must stand back and let the Federal Reserve tighten one more round this coming well and it might do so only 50 basis points but that is enough to tumble Great Britain into receivership unless the United States ships it tons of gold it can hardly afford to do as it, the United States, owes China about $6 billion more than it has gold reserves for and will call the deal back until it gets enough to pay the Chinese. Meanwhile, Putin is milking Saudi Arabia by forcing the trade for oil insisting that ARAMCO pay out sixty-five cents more for a barrel of oil than it presently costs to produce it easily. Saudi oil costs them about $6.35/bbl and Putin will add to their oil output by mixing his crude supply with their national supply and charge the Saudi’s $0.35 for the privilege of using Russian oil.

“Saudi Arabia countered they could not afford that in the long run, and Russia fired back with, “if you do not use our oil, we will see to it you use not oil exports as this is a war and we mean to protect our interests.”

“Saudi Arabia let it be known it would cave but insisted on dropping production to offset their oil in barrels with more Russian oil per barrel and as a result so upset the United States by production cuts, the US is cutting aid to that country’s interest in policing the Gulf with its one jets and Air force. Up until now it was policed by American fighter squadrons from the Fleet deployed intothe Gulf region in the early days of the Iraq war.

“As a result, the United States now runs a beggar’s game asking the Saudi oil minister to pare back use of jet fuel for themselves while the USA patrols the Gulf for them again and the oil minister rebuffed DOS Blinken with a swat to his horse and said they could not discuss it now. Let the US remember the 1974 oil embargo, and you get the picture of what might happen in the near future with gasoline supplies in the US reaching very low levels equal maybe to the 1974-75 oil shortage in the past. K”

Ron Besser here - “I have no completed the emergency transmission of the Finance Minister of the Magisterial Foundation Regency. Take it serious folks. I have nothing further right now to say. Thank you for your attention and listening to a sad tale being repeated again we thought we never had to face oil shortages ourselves again. Worse yet the American government is not aware of this developing scenario.

We thank the Finance Minister of the Regency of the Magisterial Mission coming shortly to our shores regardless of our own problems with worker insubordination on high. Thank you Serara!

Ron Besser for the Office of the Magisterial Foundation now open for business with good and excellent reporting available again so long as we have MICHAEL OF NEBADON ready to supply the clear channel necessary to download important policy speeches from all concerned.

END
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