Sound as pound heading for the ground

In a piece in today's Financial Times, Jim Rogers makes the case that the United Kingdom is out of options. Its currency has no floor, London's status as a serious financial centre is a joke, and the public finances a disaster. Apart from the currency point, the same could be said of most developed nations, I have to say (the US being the exception, as it operates the world reserve currency).

I was surprised that Rogers didn't harp on about his usual hobby horse of investing in commodities. Talk about a broken record. If you'd taken his advice (unchanged since time immemorial) to buy commodities last year, you'd be nursing some nasty losses. Still, he has a point about the UK. Granted they don't have the same level of difficulties (yet) as the Citis and BoAs of this world, but the relative slackness of their government (compared to the momentum of the Obama administration) is a cause for real concern.