An economics, investment, trading and policy blog with a focus on Modern Monetary Theory (MMT). We seek the truth, avoid the mainstream and are virulently anti-neoliberalism.
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Tuesday, January 12, 2016
GBP lowest since 2010
Brent premium recently disappearing; now showing up in exchange rate.
Reduced terms of trade... North Sea oil now being offered for lower prices in USD terms... reduces the value of all financed North Sea oil inventories... banks have to make regulatory financial adjustments....
I don't understand the link between Brent Premium prices and the fall in the pound.
ReplyDeleteReduced terms of trade... North Sea oil now being offered for lower prices in USD terms... reduces the value of all financed North Sea oil inventories... banks have to make regulatory financial adjustments....
ReplyDelete'Its about price not quantity...'