aus 1360, page-31

My reckoning is that there are a few bubbles under the carpet (check the FHLB*) albeit the UK are always the most upfront and come clean earlier than most - yes the UK banks are insolvent but what about the US - JPM et al?

Therefore (as is much the case with the UK for playing with a straighter bat than most) the GBP sell off. Selling of the GBP is the focus of forex - with any bad news - which is translating into a flight to gold. "Offical" figures out tonight indicate that they are in a worse recession than in 1980 - so where does that put the US???????

Maybe the Brits are getting a little savvy and buying before the "world reserve currency" collapses??? "Cause make no mistake the Brits are not in this on their own and they are but a support boat for the Titanic!

BTW - worth noting the Chinese are moving from long term treasuries to short term and Obama has accused the Chinese (via Tim Geithner - we will be hearing that name much more...........) of currency manipulation and then there is the growing calls by the Chinese for Beijing to sell their holdings of US treasuries this month............they are looking for the quick exit door.

*http://www.aier.org/research/commentaries/1034-trouble-at-the-boston-qflubq