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If I build a house on stilts strong enough to withstand kicks but somebody comes along with a giant sledgehammer to break the stilts, they will be at least some

by ummonk 7y ago

If I build a house on stilts strong enough to withstand kicks but somebody comes along with a giant sledgehammer to break the stilts, they will be at least somewhat to blame.

nabla9 7y ago
The house is the economy of UK in your metaphor. The house dropped into solid ground and was in better condition overall (especially exports). The Guy who build the house on stilts was proven wrong. Artificial stilts are stupid thing. Houses should be build on solid ground.
BubRoss 7y ago
No one is running around and destroying healthy financial entities. Rotting posts will break eventually, a little effort can just change the timing.
- matz1 7y ago
  Why no one ? You don't believe, out of all human in the world, that there is someone that gain satisfaction out of destroying healthy financial entities ?
  - BubRoss 7y ago
    If one person could destroy it, it wouldn't be healthy would it?
    - matz1 7y ago
      Healthy doesn't mean could not be destroyed.
      - BubRoss 7y ago
        In this context that's exactly what it means. I have no idea what you are talking about, but this article is about the pound not being backed and the peg being forced to break. That doesn't happen unless there is some sort of dishonesty or insolvency going on.
        matz1 7y ago
        In your context, even if the pound are being backed, doesn't mean it can't be destroyed.
        BubRoss 7y ago
        That's exactly what it means. If there is enough to exchange for the price that is claimed, then a billionaire can't break the peg by exchanging out pounds and forcing their hand. The gold standard collapse in the US happened when France thought they didn't really have enough gold to back their currency. They started exchanging dollars for gold and the US was forced to break the amount of gold they claimed dollars were worth. What do you think is meant by destroyed here? How is a financial entity destroyed if they aren't insolvent?
        matz1 7y ago
        >If there is enough to exchange for the price that is claimed, then a billionaire can't break the peg by exchanging out pounds and forcing their hand. Sure, doesn't mean that there is no other way to break it.
        BubRoss 7y ago
        What do you mean by 'break' and how would it happen?
        ummonk 7y ago
        If the currency is priced at fair value but the country is small and thus has proportionate reserves, a multi-billionaire could simply pump all his money into pushing the currency out of its declared price range, causing a loss of trust in the currency, resulting in a further slide of the currency. That isn't what happened here of course, but it could happen to a smaller country trying to maintain a pegged currency.
        7y ago

by ummonk 7y ago

If I build a house on stilts strong enough to withstand kicks but somebody comes along with a giant sledgehammer to break the stilts, they will be at least somewhat to blame.

nabla9 7y ago

The house is the economy of UK in your metaphor. The house dropped into solid ground and was in better condition overall (especially exports). The Guy who build the house on stilts was proven wrong. Artificial stilts are stupid thing. Houses should be build on solid ground.

BubRoss 7y ago

No one is running around and destroying healthy financial entities. Rotting posts will break eventually, a little effort can just change the timing.

matz1 7y ago
Why no one ? You don't believe, out of all human in the world, that there is someone that gain satisfaction out of destroying healthy financial entities ?
- BubRoss 7y ago
  If one person could destroy it, it wouldn't be healthy would it?
  - matz1 7y ago
    Healthy doesn't mean could not be destroyed.
    - BubRoss 7y ago
      In this context that's exactly what it means. I have no idea what you are talking about, but this article is about the pound not being backed and the peg being forced to break. That doesn't happen unless there is some sort of dishonesty or insolvency going on.
      - matz1 7y ago
        In your context, even if the pound are being backed, doesn't mean it can't be destroyed.
        BubRoss 7y ago
        That's exactly what it means. If there is enough to exchange for the price that is claimed, then a billionaire can't break the peg by exchanging out pounds and forcing their hand. The gold standard collapse in the US happened when France thought they didn't really have enough gold to back their currency. They started exchanging dollars for gold and the US was forced to break the amount of gold they claimed dollars were worth. What do you think is meant by destroyed here? How is a financial entity destroyed if they aren't insolvent?
        matz1 7y ago
        >If there is enough to exchange for the price that is claimed, then a billionaire can't break the peg by exchanging out pounds and forcing their hand. Sure, doesn't mean that there is no other way to break it.
        BubRoss 7y ago
        What do you mean by 'break' and how would it happen?
        ummonk 7y ago
        If the currency is priced at fair value but the country is small and thus has proportionate reserves, a multi-billionaire could simply pump all his money into pushing the currency out of its declared price range, causing a loss of trust in the currency, resulting in a further slide of the currency. That isn't what happened here of course, but it could happen to a smaller country trying to maintain a pegged currency.
        7y ago