Originally Posted by
EBD
Well, UK did not sell all their gold reserves -old Gordon sold 60%, they still have over 310 tonnes of the stuff according to wikipedia (not sure how reputable this is) and apparently this is 15% of their forex reserves.
For Singapore gold is on 2.3% of the forex reserves, so if the logic is more gold = stronger currency - then it seems SGD is in an even worse position. What is our currency backed by? even less gold & even more lousy USD yet paradoxically it's getting stronger.
Also Singapore has no native industry and never has either (ok got Creative, but been talking about them for 15 years and no one else). Still no MNC or native product to talk about, so that argument also don't matter. I'm also pretty sure it's not true that they have no native industry - that seems a rather off the cuff remark & not sure what it's backed by.
UK is going through a crisis that's for sure. But having been a regular visitor
for last 2 decades I have seen all kinds of ups and downs - not sure it can get any worse for them & Cameron seems pretty determined to regain control of spending.
reminds me - book a car at heathrow today for December, take advantage of the low rate. Maybe go shopping for another apt while their too..... but maybe not sure house decline is over yet.