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  • FIRST POST
    • jumperabv3
    • By jumperabv3 7th Oct 16, 4:04 AM
    • 781Posts
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    jumperabv3
    The value of the British Pound
    • #1
    • 7th Oct 16, 4:04 AM
    The value of the British Pound 7th Oct 16 at 4:04 AM
    This is just terrible, getting paid in pounds nowadays is not what it used to be 4 months ago.

    Why did you do it? Was it really worth it to vote for Brexit?

Page 3
    • Heng Leng
    • By Heng Leng 12th Oct 16, 12:12 PM
    • 3,494 Posts
    • 1,046 Thanks
    Heng Leng
    I do get a good chuckle when they bring up 'The War' as reason to leave the EU.

    Could not have said it better....
    Originally posted by Marchitiello
    • Robisere
    • By Robisere 12th Oct 16, 12:34 PM
    • 1,118 Posts
    • 1,766 Thanks
    Robisere
    Trying to thrash out yet another Brexit debate is futile. The decision was made as a result of the people voting. It does not matter how close the vote was: it's over and done, we have to move on and deal with the consequences.

    I personally voted Remain because I thought that was best for my grandchildren's future, but I respect the democratic decision of the (slim) majority because that is surely what this country is all about, is it not?
    There may be more than one way to skin a cat.
    But the result is always inedible.

    • Voyager2002
    • By Voyager2002 12th Oct 16, 12:42 PM
    • 11,015 Posts
    • 7,369 Thanks
    Voyager2002
    Trying to thrash out yet another Brexit debate is futile. The decision was made as a result of the people voting. It does not matter how close the vote was: it's over and done, we have to move on and deal with the consequences.

    I personally voted Remain because I thought that was best for my grandchildren's future, but I respect the democratic decision of the (slim) majority because that is surely what this country is all about, is it not?
    Originally posted by Robisere
    Absolutely, we have to deal with the consequences.

    One consequence that no-one has spotted yet is that the trade-weighted value of the pound touched its lowest level EVER last night! Lower than that point in the mid-1980s when the pound was worth only a little more than the US dollar. Truly we are venturing into uncharted territory...
    • sgarrod79
    • By sgarrod79 12th Oct 16, 12:44 PM
    • 2 Posts
    • 2 Thanks
    sgarrod79
    Trying to thrash out yet another Brexit debate is futile. The decision was made as a result of the people voting. It does not matter how close the vote was: it's over and done, we have to move on and deal with the consequences.
    Indeed, but it is not Brexit itself that is the reason for the drop but the Bank of England's decision to trigger an unnecessary second rate cut and round of QE. Money printing has never been kind to the value of currency.
    • Thrugelmir
    • By Thrugelmir 12th Oct 16, 12:47 PM
    • 51,211 Posts
    • 42,991 Thanks
    Thrugelmir
    Indeed, but it is not Brexit itself that is the reason for the drop but the Bank of England's decision to trigger an unnecessary second rate cut and round of QE. Money printing has never been kind to the value of currency.
    Originally posted by sgarrod79
    I'd say the balance of trade deficit and the budget deficit. Brexit has merely brought the UK into primary focus in the markets. The issues have been discussed for a very long time. Now it's time to face reality.
    “A man is rich who lives upon what he has. A man is poor who lives upon what is coming. A prudent man lives within his income, and saves against ‘a rainy day’.”
    • jumperabv3
    • By jumperabv3 12th Oct 16, 9:43 PM
    • 781 Posts
    • 156 Thanks
    jumperabv3
    Indeed, but it is not Brexit itself that is the reason for the drop but the Bank of England's decision to trigger an unnecessary second rate cut and round of QE. Money printing has never been kind to the value of currency.
    Originally posted by sgarrod79
    Bank of England did what it did because of Brexit ... without Brexit it wouldn't have touched the rates...

    GBP/USD is going towards the $1.21 territory, quite shocking ...
    • CLAPTON
    • By CLAPTON 12th Oct 16, 10:00 PM
    • 40,870 Posts
    • 29,613 Thanks
    CLAPTON
    Bank of England did what it did because of Brexit ... without Brexit it wouldn't have touched the rates...

    GBP/USD is going towards the $1.21 territory, quite shocking ...
    Originally posted by jumperabv3
    has the unprecedented large deficit in the trade balance for the last few yearsbeen a result of brexit?
    has the continual decline in the UK net foreign assets been a result of brexit?
    has the continual decline in the net foreign dividend transfers been a result of brexit.
    • jumperabv3
    • By jumperabv3 12th Oct 16, 10:27 PM
    • 781 Posts
    • 156 Thanks
    jumperabv3
    has the unprecedented large deficit in the trade balance for the last few yearsbeen a result of brexit?
    has the continual decline in the UK net foreign assets been a result of brexit?
    has the continual decline in the net foreign dividend transfers been a result of brexit.
    Originally posted by CLAPTON
    The GBP/USD was stable for years since 2008 .... moving mainly between the 1.5ish to the 1.6ish back and forth.

    Brexit --> 1.21

    $1.21 - do you realize how insane that is?
    • mgdavid
    • By mgdavid 13th Oct 16, 1:38 AM
    • 4,803 Posts
    • 3,971 Thanks
    mgdavid
    The GBP/USD was stable for years since 2008 .... moving mainly between the 1.5ish to the 1.6ish back and forth.

    Brexit --> 1.21

    $1.21 - do you realize how insane that is?
    Originally posted by jumperabv3
    do you realise how insane you sound?
    A salary slave no more.....
    • jumperabv3
    • By jumperabv3 13th Oct 16, 6:17 AM
    • 781 Posts
    • 156 Thanks
    jumperabv3
    do you realise how insane you sound?
    Originally posted by mgdavid
    Try to get a vacation (sorry, holiday) in the US now and tell me if I'm insane or perhaps it's the currency that is speaking for itself.

    If people are not concerned from having a weaker currency (it has lost over 20% of its value against the dollar since Brexit, OVER 20%) - if that's business as usual for you then honestly I don't know what else to say.

    Seeing the GBP as $1.21 against the US Dollar is definitely not business as usual for me.... maybe exporters are laughing but importers are going to raise prices now .... or go bankrupt - whichever that is - it's not going to be good for the economy.

    I wonder what the price of US Cars or even Japanese ones are going to be now that the currency has fallen into unforeseen territory ... it's cars, holidays, groceries and goods you buy at Tesco, Sainsbury's, M&S and more...

    Seriously if you can't see the problem then you probably don't understand how important the value of your currency is.
    • bigadaj
    • By bigadaj 13th Oct 16, 6:51 AM
    • 7,785 Posts
    • 4,741 Thanks
    bigadaj
    Try to get a vacation (sorry, holiday) in the US now and tell me if I'm insane or perhaps it's the currency that is speaking for itself.

    If people are not concerned from having a weaker currency (it has lost over 20% of its value against the dollar since Brexit, OVER 20%) - if that's business as usual for you then honestly I don't know what else to say.

    Seeing the GBP as $1.21 against the US Dollar is definitely not business as usual for me.... maybe exporters are laughing but importers are going to raise prices now .... or go bankrupt - whichever that is - it's not going to be good for the economy.

    I wonder what the price of US Cars or even Japanese ones are going to be now that the currency has fallen into unforeseen territory ... it's cars, holidays, groceries and goods you buy at Tesco, Sainsbury's, M&S and more...

    Seriously if you can't see the problem then you probably don't understand how important the value of your currency is.
    Originally posted by jumperabv3
    You appear to be struggling with post gfc economics.

    One of the major aims of ultra low interest rates, as well as trying to inflate away the debt that should have been written off in 2009 and stimulating the economy, is to devalue currencies relative to their major ones.

    All the major economies have been trying to devalue for nearly the last decade, for example the relative strength if the yen has been a huge concern for the Japanese government given their economy is so reliant on exporting.

    The relative volatility of the pound over the last few months is as much a point for concern as its absolute strength, like Brexit it's the uncertainty that can be damaging for businesses and many people in the shirt to medium term.

    Some people will gain and some will lose, if you hold equities in non uk markets then you've effectively had a large boost to your holdings in sterling terms. If you are going on vacation then things will be more expensive, simplistically you'll have to work say 20% harder to buy the same holiday, if you can't afford that then you can't take the holiday.
    • PeacefulWaters
    • By PeacefulWaters 13th Oct 16, 7:25 AM
    • 5,052 Posts
    • 6,075 Thanks
    PeacefulWaters
    The GBP/USD was stable for years since 2008 .... moving mainly between the 1.5ish to the 1.6ish back and forth.

    Brexit --> 1.21

    $1.21 - do you realize how insane that is?
    Originally posted by jumperabv3
    I'll try again.

    Do you realise what new opportunities that opens up for exporters?
    • CLAPTON
    • By CLAPTON 13th Oct 16, 7:27 AM
    • 40,870 Posts
    • 29,613 Thanks
    CLAPTON
    how do you image the value of a currency is determined?

    the UK has had a current a/c trade deficit for many years : the shortfall has been funded by
    -selling off UK businesses and industries (have you really not noticed how most of the major businesses here are foreign owned?
    -borrowing on the foreign exchange markets

    clearly most people can be 'rich' by selling their assets off and borrowing

    most people with two brain cells realise there is a flaw in the plan and know the day of judgement will arrive.
    some may even say it is an insane model but that's a matter of judgement.

    but don't trust me
    you look up
    -the UK current a/c trade deficit
    - the difference between foreign assets owned by the UK and UK based assets owned by foreigners and how that has changed over recent years
    -the difference between foreign dividend coming into the UK and the level of UK dividends flowing out of the UK.

    then look up a standard economics book and see what they say about the likely movement in exchange rates in a situation like this.
    Last edited by CLAPTON; 13-10-2016 at 8:10 AM.
    • lstar337
    • By lstar337 13th Oct 16, 10:55 AM
    • 2,866 Posts
    • 1,468 Thanks
    lstar337
    If you are going on vacation then things will be more expensive, simplistically you'll have to work say 20% harder to buy the same holiday, if you can't afford that then you can't take the holiday.
    Originally posted by bigadaj
    Or you can holiday in the UK and help boost our economy. I'm guessing UK holidays are looking pretty good to people in Europe and the US right now.
    Last edited by lstar337; 13-10-2016 at 10:57 AM.
    • Trumpeter
    • By Trumpeter 13th Oct 16, 11:52 AM
    • 97 Posts
    • 41 Thanks
    Trumpeter
    Or you can holiday in the UK and help boost our economy. I'm guessing UK holidays are looking pretty good to people in Europe and the US right now.
    Originally posted by lstar337
    And you don't think that UK holiday prices will rise when demand exceeds supply? Or UK hotel prices are already massively overpriced compared to elsewhere anyway?
    • colsten
    • By colsten 13th Oct 16, 3:38 PM
    • 8,139 Posts
    • 6,624 Thanks
    colsten

    Do you realise what new opportunities that opens up for exporters?
    Originally posted by PeacefulWaters
    The opportunities for experts are obvious.

    As are the price increases for importers and for those who want to spend time outside the country.
    • mgdavid
    • By mgdavid 13th Oct 16, 5:54 PM
    • 4,803 Posts
    • 3,971 Thanks
    mgdavid
    The opportunities for experts are obvious.

    As are the price increases for importers and for those who want to spend time outside the country.
    Originally posted by colsten
    some you win, some you lose.
    It might make people value what they have, and give more thought to their spending plans (do I need it or do I want it?) - both good IMO.
    A salary slave no more.....
    • jumperabv3
    • By jumperabv3 13th Oct 16, 6:35 PM
    • 781 Posts
    • 156 Thanks
    jumperabv3
    Or you can holiday in the UK and help boost our economy. I'm guessing UK holidays are looking pretty good to people in Europe and the US right now.
    Originally posted by lstar337
    Oh yes, try to travel the UK with your car and pay expensive price for petrol ... hint: the UK imports petrol from other countries and paying for it with a GBP currency ... so it just got more expensive by 20% too.
    • jumperabv3
    • By jumperabv3 13th Oct 16, 6:36 PM
    • 781 Posts
    • 156 Thanks
    jumperabv3
    Here are a few more sane people at the Independent screaming out loud what I was trying to imply:

    http://www.independent.co.uk/news/business/news/pound-value-euro-currency-exchange-airports-breyxit-a7355296.html

    And don't get me wrong, using the airport is for suckers when you can use a card like Halifax Clarity or Creation instead and others instead - but the article does emphasize how serious the situation is.
    • CLAPTON
    • By CLAPTON 13th Oct 16, 7:05 PM
    • 40,870 Posts
    • 29,613 Thanks
    CLAPTON
    Here are a few more sane people at the Independent screaming out loud what I was trying to imply:

    http://www.independent.co.uk/news/business/news/pound-value-euro-currency-exchange-airports-breyxit-a7355296.html

    And don't get me wrong, using the airport is for suckers when you can use a card like Halifax Clarity or Creation instead and others instead - but the article does emphasize how serious the situation is.
    Originally posted by jumperabv3
    so we are expecting about 3% inflation fairly soon
    just 1% higher than the BoE target of 2% and fairly low by historic standards
    but it does make us poorer but then living of borrowing and selling our best assets was never a sensible way of living above our means
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