EUR and the GBP help wanted

Posted on Wednesday, March 10th, 2010 at 7:34 am.

The pound has been the subject of attack before. For instance, in an incident still remembered as “Black Wednesday,” billionaire investor George Soros – Rogers’ former Quantum Fund partner – made a cool billion selling short a massive quantity of sterling in September 1992.

This could happen again. And while it might be welcomed by exporters and anyone traveling to the United Kingdom on spring break – how about a quick 20% discount on rooms and food? – it would be disastrous in other ways.

Watch this, as it is inherently destabilizing for world trade, commodities and stocks. The Bank of England (BOE) and its allies would have to step in at some point to prop up the pound. And if that currency coalition proved unable to stem the tide against speculators, the loss of credibility would be devastating.

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