Is this true?
Technically this is also wrong: the (Tobin) tax can be applied to sterling without any agreement from any other nation. All sterling eventually flows through the Bank of England. Taxing it is easy.
You see, I\’ve got this feeling that this is the way the US thought about dollars once upon a time. So they imposed a witholding tax (I think that was it) and thus there grew up the Eurodollar markets to avoid this tax. That is, trades in dollars which did not clear through the US (at least that\’s my undersatnding of what happened).
And I\’m pretty certain that there is a Eurosterling market as well…..
Anyone care to correct either myself or Ritchie?