Tag Archives: savings

The Bank of England vs the banks of England – Negative Interest Rates

This article is from the Fortune and Freedom newsletter. 

On 28 September, economists at the US central bank published some important research. It concluded that imposing negative interest rates is a bad idea.

Sure enough, two weeks later, the Bank of England asked our banks whether they’re prepared for negative interest rates…

Typical.

But what are negative interest rates? Are they really coming to the UK? And what do they mean for you?

That’s what we’ll tackle today. Start to, anyway.

Negative interest rates may seem bizarre or impossible. But, when central bankers are involved, the bizarre becomes a lot more possible.… Click here to continue reading this article

The Weak, Collapsing Pound against the Euro and Dollar.

As recession bites deeper into the United Kingdom, our usually strong pound has recently been derided as a “Peso Pound” abroad.

At the time of writing, a pound is worth $1-44, One Euro or Forty-One Russian Rubles. A collapse of over 25% in just a few short months.

Anybody with a second home in Europe or the USA, who did not stack ample cash reserves in those currencies already, will already be feeling the pain in the form of increased sterling equivalents when paying their Euro or Dollar denominated mortgages.

Anybody in the Euro zone or the USA who receives income in £ sterling will be similarly reeling, as are holidaymakers and importers.… Click here to continue reading this article