Weak Dollar - Any Concerns

[Gone4Good]

The UK pension system (similar to the US in that there is a fund made up of government securites) is so different to the Eurozone countries (ie they don't a pension fund, it is completely pay as you go, so the baby boomers retiring means more taxes for the remaining workers or lower benefits) is one of the reasons the UK did not join the euro.

So a fund made up of debt obligations owed both by, and too, the same government is supposed to be different from a pay as you go scheme how?

Hey look, I just wrote my self a $10MM IOU . . . I'm off to spend my $400,000 SWR. Why didn't anyone think of this sooner?

 

[Nords]

Why didn't anyone think of this sooner?

Maybe because it costs a lot of money to print your own currency!

 

[Lancelot]

As an FYI to Lancelot (and you might know this).... the UK does not use Euros...

And the euro was way below a dollar a few years back.... so it is WAY stronger than it was...

Yep, the Brits in my neighborhood remind me constantly "Two for one today mate" (two pounds sterling per USD)

I was referencing that Citi Group (I think that was the name) study that the UK is shifting to more personal retirememnt savings plans that are funded (the value of the market that day)

 

[Milton]

US stock market - could go up as our stocks look cheap to foreign investors; it could go down if foreign investors see their currently invested dollars going down. So far it isn't in the news so not too much to worry about.

The longterm decline of the value of the US$ isn't in the news Really? What newspaper do you read?

Most non-American investors are very aware that the greenback has significantly slumped during the past few years, and are accordingly cautious about the US markets.

 

[Alan]

So a fund made up of debt obligations owed both by, and too, the same government is supposed to be different from a pay as you go scheme how?

It's the same as the US system - which pushes the SS money from one hand to the other. Both the US and UK think this is better than no fund at all. SS fund, no SS fund, which is better? I don't know but the reason I brought it up is that the UK had to essentially give up its pension funding system to be in line with the rest of the Euro countries. Unless there is a concession or a major change in thinking then the UK won't be joining the Euro system any time soon.

 

[d]

Yep, the Brits in my neighborhood remind me constantly "Two for one today mate" (two pounds sterling per USD) sure hope you asked them what it was 30 yrs ago!