The Foreign Office is being undermined by a \”ludicrous\” decision to stop protecting its overseas budget from changes in exchange rates, according to MPs
Nothing ludicrous about this decision at all. Entirely sensible.
For to protect against changes in exchange rates you have to gamble, to speculate. You might even use some combination of futures and or options. Possibly even swaps.
And we know what happens when you do that, don\’t we children? Kittens will cry, babies will be eaten, puppies barbequed and bankers make a profit.
No, no, vastly better to bear the outrageous slings and arrows of fortune than to transfer risk from taxpayers to speculators. After all, these financial markets, they don\’t actually do anything socially useful, do they? Pure froth which society would be better off without.
As we can see….