Did You Short the Pound?
February 17, 2008
– Comments (5)
On more than one occassion I have written that the British Pound is going down further. They have enormous spending on social programs and an excessive welfare spending, but exceptionally low spending on education.
I taught over there and it was like living in "Lord of the Flies" for how out of control their children are, and, utterly shocking to me the students knowing that I was a teacher would ask me to buy them cigarettes and booze and they didn't see it a problem that I should see them drinking, smoking or smoking pot. My teaching load was 247 students and went home early simply because it was life in the worst hell I've ever lived.
Britain pays all your eduation costs if you want to be a teacher and they still can't keep teachers or catch up to the attrition rate of teachers and the results is the return of the barbarians. School is a hell hole for students and teachers.
Anyway, when you have kids leaving school that can't do 7x8, your economy is screwed, and only 1/3rd of the students in the school I was in were expected to make the equivalent of grade 10 or sophmore. Nationwide I think about 25% do not get to that level of education, and sophmore level is a common place where students quit school. Their 6th form is like our senior high and many do not go on to complete it. It is considered "higher" education.
Well, here's another nail in the British Pound, they are Nationalizing Northern Rock, the bank that had a depression era bank run last summer with people lined up around the block for three days withdrawing their money. This is a significant tax payer bail out, and one where their is no money in government coffiers to pay for it.
Shareholders end up with nothing with this kind of deal and it the risk that bottom fishers take. Bankrupcy is the other risk.
Incidently, about a year ago I anticipated that there would be depression era type bank runs with people lining up to with draw their money. It simply freaked me out to see it happen so soon after I anticipated it. Be diversified.
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