They talk up their economy and we talk ours down.

For instance, they don't have a Chancellor of the Exchequer claiming we've the worst financial situation in 60 years. My guess is history will record this comment by Darling as the stupidist political statement for 60 years - since Chamberlain's 'Peace in our time' speech.

They've also actually tried to do something to make a change to their economy. We've done nothing. They've dropped their interest rates. Whether this will help or not is arguable but at least it can be said they've done something. What have we done? Nothing, nada, zilch.

M

So you think the dollar/pound shift is partly a reflection of the kinds of public statements being made in each country, Matthew? I dunno. I think your point about the Fed's intervention rings truer to me. Dropping interests might slow the decline, Stateside, at the expense of a worse depression when it comes, so maybe the speculators are making a little last-minute money in the US before the boom gasps its last and propping up the dollar as a side effect (because it surely must be a speculation-driven shift, right? I don't think balance of payments alter that quickly. Ooh, I wish I knew more economics.)