BIG SHORTING OF THE UK POUND AGAINST THE MAJOR CURRENCIES BY TAX CUTS

IT WASN’T GAMBLE, CLEVER SET-UP FOR MAKING MILLIONAIRES

Last Friday, the new chancellor's announcement of TAX CUTS to put money in people's pockets TO GROW THE ECONOMY was a genius set-up to deceive us into seeing the reality. Everybody panicked. Markets, business people, manufacturers, importers, opposition parties and myself accused the government of GAMBLING with our money. Everybody, including the opposition party, could not see the stock market scam. This was the idea introduced 50 years ago by another conservative chancellor Barber, but it failed badly. The pound lost its value and floated on the exchange market. Those days traders were not aware of SHORTING A CURRENCY. Nowadays, it is very popular and normal to use this trading facility in the markets when the circumstances are right. You can make or lose a fortune.

On Friday, the British Chancellor announced to all the traders, financial and stock markets in the world: " Except for basic pay, I am cutting the taxes from their present levels,”. This was a signal from the UK government that the pound was going to be SLUMPED. History was repeating itself. Ideal circumstances for SHORTING it for trader and they did. Monday, the pound hit the lowest value in its history, and many traders made multi-million gains overnight. Example of how shorting works: When traders know major upheaval in the market will cause an upset, they rent a currency for a contract to be paid back within a time frame. They sell the rented currency at the ongoing rate and wait for it to lose value. When it happens, they buy it back and return it to the lender. In the pound case, for example, if £1000 was rented and sold in the market two days before the announcement, which would collect $1220 (1£/=1.22$,) Monday value being lowered to (1£=1.03$,) buyback is for $1030, profit of $190 overnight. 20% profit without moving a finger. Multiply this example by thousand or millions of pounds, mind-blowing sums for individuals, stockbroking companies and banks.

This was not a gamble by the chancellor it was designed to make more individuals and institutions rich. The way it was done gave the impression to the public that tax cuts put money in their pocket to spend and grow the economy. In reality, what was done could be called “internal stock market trading rules and regulations are broken,” which is a criminal offence.

Since 2019 we have had two extreme chancellors of the same government. They all sat together in their cabinet meetings and agreed with every decision. Chancellor of Boris's government legacy is the highest taxes in the UK financial history. Financial facilities provided for the Covid pandemic, and the Russian war created a few millionaires. Chancellor of the Truss government started his position shamelessly by tax cuts and providing a trading platform for the traders to make more millions and become millionaires. Different approaches to make minorities wealthier.

What will happen now is the big question.

A week pound will cause a price hike in markets, goods, and everything related to normal life. The cost of living crisis will be uncontrollable. Inflation is going higher, unions will request higher wages hence STRIKEs. The prospect of general strikes now is a reality. New austerity measures will be introduced to cover the cost of essential services such as NHS, Education, Transport, Energy, etc. The central bank will increase interest rates. Expected to be around 6/7%. The mortgages will become unaffordable. The ordinary citizen will have difficulty choosing to eat or heat and now keep a roof over their head. The crime rate will increase, and the cost of policing.

The present situation is not sustainable. The government will soon make a u-turn to limit the damages. That is the prediction. What had been organised ‘SHORTING A POUND’ is done with damage to the country’s reputation and its credit rate. More people with money and facility became more wealthy. Now she needs a new scheme to please 1 % of the nation.

THE FUTURE IS BLEAK. TRUST IN UK ECONOMY IS LESSENED, AND WORLD MARKETS ARE MORE HEARTLESS THAN UK GOVERNMENT THINKS. SOON SHE WILL FIND OUT.

The last word, Russia is happy seeing the UK pound lose its state as the world's more valuable currency. RUBBLEs are not the only worthless currency in the world anymore.

Note: Thanks, Anna from Pexel for the picture.

--

--

First I lived with Cancer the survived to write my experience.Now i am writing stories at medium to reflect my life experiences.It's part of STAYING ALIVE

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
kayhan egeli

First I lived with Cancer the survived to write my experience.Now i am writing stories at medium to reflect my life experiences.It's part of STAYING ALIVE