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Zloty exchange rates - is this just speculation? [87]
..... go outside your front door and see for yourself.
Its idiotic thinking like that that drives assets bubbles and delusions of wealth.
Look at the UK today and what do you see? a booming stock markets and house prices rises of 10%. What you don't see is the 200billion pounds the UK government printed and dumped on the streets to keep the spending party going (and labour in power).
In a few days that will stop, taxes will rise (5p basic rate rise), a million more government employees will be on the dole, interest rates will rise house prices crash another 40%. Its going to be **** in the UK for 10-years.
The UK is in the worst financial situation of any other EU country besides Greece, bets against its are rocketing. Pound is going for 1.31 against the dollar in the next four months.
Poland in comparison has a booming economy, little state
or personal debt and the one of the worlds most undervalued currencies.
The Pound is going to crash, the only reason the Zloty is falling now is a flight to less risky currencies (dollar) at a time of panic - but a thirst for risk returns very quickly.
It does seem about the right level - roughly about 8 zloty for a beer in a German bar, or 15zl for a dish in an average cheap Chinese restaurant in Berlin.
However, the Zloty/Pound relationship is absolutely neurotic and unpredictable, but this has been the same way ever since the Zloty became convertible in the first place.
Whereas a beer in London bar costs around 16.5 zloty and 23 zloty for the Chinese dish. The pound isn't so much neurotic as vastly over valued.
