When it was announced in late November that Goldman's Mark Carney would become head of the BOE (a "shocking" move only Zero Hedge predicted), we said that one has to be insane to be buying the GBP at those levels. Sure enough, it took just two short months before the implications of yet another Goldmanite's pro-inflationary policies would become apparent. To wit:
- KING SAYS BOE IS READY TO PROVIDE MORE STIMULUS IF NEEDED
- KING SAYS QE WAS CRUCIAL IN AVOIDING U.K. DEPRESSION
- KING SAYS U.K. BANKS SOME WAY FROM CONVINCING MARKETS ON SAFETY
- KING SAYS POUND DROP WAS NEEDED FOR U.K. REBALANCING
- KING: U.K. 4Q GDP ALMOST CERTAINLY CONSIDERABLY WEAKER THAN 3Q
And the punchline:
- KING SAYS REBALANCING NEEDED TO AVOID CURRENCY WARS
In other words, please welcome the UK to the global currency wars.
and thusly FTSE-100 stock futures reach 50-Month highs as the triple-dip is about to begin...