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  • FIRST POST
    • jumperabv3
    • By jumperabv3 7th Oct 16, 4:04 AM
    • 786Posts
    • 170Thanks
    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 5
    • PeacefulWaters
    • By PeacefulWaters 15th Oct 16, 9:15 PM
    • 5,082 Posts
    • 6,097 Thanks
    PeacefulWaters
    The rate hit $1.05 in 1985. Been here before. Nothing new.
    Originally posted by Thrugelmir
    Indeed.

    The OP keeps using words like "panic". I really don't understand why.
    • Joe_Bloggs
    • By Joe_Bloggs 15th Oct 16, 9:55 PM
    • 4,360 Posts
    • 1,542 Thanks
    Joe_Bloggs
    What was the question, .. can anybody hear me....? . Matron..Nurse.. Siri.... Cortana ....
    OFT work merger decisions 2012:- MSE too small to be worth financial consideration ?
    • colsten
    • By colsten 16th Oct 16, 1:04 AM
    • 8,150 Posts
    • 6,644 Thanks
    colsten
    The rate hit $1.05 in 1985. Been here before. Nothing new.
    Originally posted by Thrugelmir
    Ah, that's alright then. Really nothing to worry about, and all those experts who say that the pound is having a bad time by any measure should just shut up as we have had enough of experts.

    • eDicky
    • By eDicky 16th Oct 16, 3:22 AM
    • 1,751 Posts
    • 742 Thanks
    eDicky
    The OP keeps using words like "panic". I really don't understand why.
    Originally posted by PeacefulWaters
    I can understand panic being felt by those with substantial travel or other foreign expenses and who have all their money in GBP. I'm one of the former but not the latter, fortunately for me, but I can sympathise.
    • Ballard
    • By Ballard 16th Oct 16, 8:51 AM
    • 1,273 Posts
    • 946 Thanks
    Ballard
    I can understand panic being felt by those with substantial travel or other foreign expenses and who have all their money in GBP. I'm one of the former but not the latter, fortunately for me, but I can sympathise.
    Originally posted by eDicky
    I'm off to Iceland (the country rather than the shop!) in a few weeks. It was looking to be very expensive but that's now become VERY EXPENSIVE. A few weeks after that I'll be in India but that'll just be 'less cheap' rather than expensive.

    In the grand scheme of things, though, I'll survive. I'm of the opinion that if I can afford a holiday then I've got little to worry about. It seems pretty clear that unless Sterling strengthens fairly soon (which I see as being unlikely) we will see inflation rise rapidly which'll hurt those close to the breadline tremendously.
    I got a letter from the government the other day. I opened it and read it. It said they were suckers.
    • schiff
    • By schiff 16th Oct 16, 9:31 AM
    • 17,023 Posts
    • 8,390 Thanks
    schiff

    In the grand scheme of things, though, I'll survive. I'm of the opinion that if I can afford a holiday then I've got little to worry about. It seems pretty clear that unless Sterling strengthens fairly soon (which I see as being unlikely) we will see inflation rise rapidly which'll hurt those close to the breadline tremendously.
    Originally posted by Ballard
    People with savings and an income will survive, people with plenty of savings and an income will find it an irritation, a small inconvenience, but they will survive. As always, even in the fairer Britain that the PM has promised and is hopefully working on, it's the people without who will bear the brunt. Has it ever been different?
    • PeacefulWaters
    • By PeacefulWaters 16th Oct 16, 9:34 AM
    • 5,082 Posts
    • 6,097 Thanks
    PeacefulWaters
    People with savings and an income will survive, people with plenty of savings and an income will find it an irritation, a small inconvenience, but they will survive. As always, even in the fairer Britain that the PM has promised and is hopefully working on, it's the people without who will bear the brunt. Has it ever been different?
    Originally posted by schiff
    Well if they can't afford to travel abroad or buy imported cars they'll probably have the fewest issues. Let's see how wild inflation gets before we make any more sweeping statements.
    • Ballard
    • By Ballard 16th Oct 16, 10:22 AM
    • 1,273 Posts
    • 946 Thanks
    Ballard
    Well if they can't afford to travel abroad or buy imported cars they'll probably have the fewest issues. Let's see how wild inflation gets before we make any more sweeping statements.
    Originally posted by PeacefulWaters
    I don't agree at all. We are talking about a scenario of high inflation. This may or may not come to fruition but if it did then it would hit those who barely manage to support themselves now. It's the people on pre-pay electricity meters and value baked beans who would really feel the pinch.
    I got a letter from the government the other day. I opened it and read it. It said they were suckers.
    • veryintrigued
    • By veryintrigued 16th Oct 16, 10:54 AM
    • 1,706 Posts
    • 913 Thanks
    veryintrigued
    Seems that even the Beebs financial commentators are unable to convey if the impending Brexit is going to be a (dogs) breakfast or not:

    http://www.bbc.co.uk/news/video_and_audio/headlines/37666628
    • mgdavid
    • By mgdavid 16th Oct 16, 1:21 PM
    • 4,807 Posts
    • 3,975 Thanks
    mgdavid
    Everyone can be concerned by what's affecting him/her the most, so for you USD could be a concern, for me ILS and THB are bigger concerns...

    And if the GBP/USD does concern you - how do you feel about seeing the GBP worth $2.00 about 8 years ago and now it's worth 40% less?

    Forget about these 3 countries.
    Try to go to the US.
    Let me know if the prices remain the same for you.
    Originally posted by jumperabv3
    I don't waste time and energy worrying or being concerned about things I have no control over.
    You might try it sometime, it's a very liberating policy.
    A salary slave no more.....
    • Scarpacci
    • By Scarpacci 16th Oct 16, 1:42 PM
    • 939 Posts
    • 2,250 Thanks
    Scarpacci
    Ah, that's alright then. Really nothing to worry about, and all those experts who say that the pound is having a bad time by any measure should just shut up as we have had enough of experts.

    Originally posted by colsten
    I think the FT chart risks making the opposite point. Seen in a historical context, this looks like it's been the destination for a long time. It's not just this sudden shock of Brexit, we've been falling down here for decades. If we stop that chart in February 2016, before the Brexit vote was announced, does it look hugely different? We're at 168 year lows mostly because of all the lows we'd fallen through before Brexit. Brexit hasn't upturned 168 years' of £ strength, it's merely continued its weakness.

    That's not to deny that the £ only buying $1.22 isn't painful, just that it isn't as unexpected or drastically unforeseeable. Yes, Brexit has pushed it here today, this year. But the story of that chart is that's where we've been heading for a long time. Have we simply arrived sooner than expected, after a quick ride on the Brexit Express?

    Apart from a few people born in the gold standard period, most people in Britain were born into a country where their currency was set to become less valuable against the dollar throughout the course of their life time than when they were born. I think that was also true for people born recently, Brexit or not.

    If we rewind the clock to June, Brexit doesn't happen, that long-term trend still stands. The £ was $1.50, maybe it would have jumped to to $1.60. That chart would not look hugely different. It wouldn't be paining people's wallets, of course, because they would have been fairly used to that level in recent times. But historically? Weak and towards the bottom of that chart.

    This isn't just a "Brexit" motivated defence. I take this view to also call into question the idea some people might have that now's the time to sell $ (or € or whatever) assets because the £'s sure to be back up. A minor rebound might occur, but I would think the post-2016 side of that chart will eventually look a lot like what came before.
    This is everybody's fault but mine.
    • CLAPTON
    • By CLAPTON 16th Oct 16, 3:29 PM
    • 40,928 Posts
    • 29,684 Thanks
    CLAPTON
    Ah, that's alright then. Really nothing to worry about, and all those experts who say that the pound is having a bad time by any measure should just shut up as we have had enough of experts.

    Originally posted by colsten
    it would seem that the price of things are significantly dearer today than in 1970.

    however, I seem to be a lot better off than in 1970

    maybe there is another variable that is missing from this analysis of trade weighted currency value, that affects how well off we are.
    Last edited by CLAPTON; 16-10-2016 at 4:46 PM.
    EU tariff on agricultual product 12.2%
    some dairy products 42.1%
    cloths 11.4%
    • schiff
    • By schiff 16th Oct 16, 3:50 PM
    • 17,023 Posts
    • 8,390 Thanks
    schiff

    however, I seem to be a lot better off than in 1970

    maybe there is another variable that is missing from this analysis of trade weighted currency value, that affects how well off we are.
    Originally posted by CLAPTON
    Me too. I think the competitiveness in prices for pretty much everything which can be accessed on the internet - if you are a motivated value chaser - is a plus. And the fact that wages have been generally on the rise and index-linked pensions have helped. Looking around on MSE for value in investing your savings does no harm either!
    • PeacefulWaters
    • By PeacefulWaters 16th Oct 16, 6:59 PM
    • 5,082 Posts
    • 6,097 Thanks
    PeacefulWaters
    I don't agree at all. We are talking about a scenario of high inflation. This may or may not come to fruition but if it did then it would hit those who barely manage to support themselves now. It's the people on pre-pay electricity meters and value baked beans who would really feel the pinch.
    Originally posted by Ballard
    Index linked benefits.

    And we are yet to assess how bad the inflation time bomb is.
    • Thrugelmir
    • By Thrugelmir 16th Oct 16, 7:06 PM
    • 51,336 Posts
    • 43,180 Thanks
    Thrugelmir
    I don't agree at all. We are talking about a scenario of high inflation. This may or may not come to fruition but if it did then it would hit those who barely manage to support themselves now. It's the people on pre-pay electricity meters and value baked beans who would really feel the pinch.
    Originally posted by Ballard
    Going to hit the highly indebted. As incomes will be squeezed. Rising interest rates being the final nail.

    Value baked beans are UK produced so won't be hit by imported inflation.
    “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’.”
    • CLAPTON
    • By CLAPTON 16th Oct 16, 7:36 PM
    • 40,928 Posts
    • 29,684 Thanks
    CLAPTON
    Going to hit the highly indebted. As incomes will be squeezed. Rising interest rates being the final nail.

    Value baked beans are UK produced so won't be hit by imported inflation.
    Originally posted by Thrugelmir
    I'm not sure that our haricot beans are all grown in the UK
    EU tariff on agricultual product 12.2%
    some dairy products 42.1%
    cloths 11.4%
    • Joe_Bloggs
    • By Joe_Bloggs 16th Oct 16, 9:23 PM
    • 4,360 Posts
    • 1,542 Thanks
    Joe_Bloggs
    Apparently they can grow the beans in Canada. These beans seem to be fussy about the soil in the UK.
    http://www2.warwick.ac.uk/newsandevents/pressreleases/scientists_on_a/
    We will genetically alter them to like the UK or else.
    J_B.
    We could try growing them in plant pots with a southern aspect.
    OFT work merger decisions 2012:- MSE too small to be worth financial consideration ?
    • Heng Leng
    • By Heng Leng 17th Oct 16, 4:56 AM
    • 3,501 Posts
    • 1,047 Thanks
    Heng Leng
    I'm not sure what point you are attempting to make with the USD rate.

    I know it's been over $2 as I got it at that time.
    The rate hovered around $1.50/1.60 mark - with anything above a bonus.

    The US used to be cheaper than the UK, but in recent years but I find the USD shelf price + sales tax isn't massively different than the UK cost (VAT inclusive). A $1.20 rate will only exacerbate this.

    Companies I've worked for either traded within Scotland/UK, or with other countries tended to bill in their local currency (EUR/USD), so the exchange rate never affected their product prices.


    Everyone can be concerned by what's affecting him/her the most, so for you USD could be a concern, for me ILS and THB are bigger concerns...

    And if the GBP/USD does concern you - how do you feel about seeing the GBP worth $2.00 about 8 years ago and now it's worth 40% less?
    Originally posted by jumperabv3
    • jumperabv3
    • By jumperabv3 18th Oct 16, 10:34 AM
    • 786 Posts
    • 170 Thanks
    jumperabv3
    I'm not sure what point you are attempting to make with the USD rate.

    I know it's been over $2 as I got it at that time.
    The rate hovered around $1.50/1.60 mark - with anything above a bonus.
    Originally posted by Heng Leng
    Anything above is a bonus - says who?
    • lstar337
    • By lstar337 18th Oct 16, 10:41 AM
    • 2,873 Posts
    • 1,472 Thanks
    lstar337
    In the grand scheme of things, though, I'll survive. I'm of the opinion that if I can afford a holiday then I've got little to worry about.
    Originally posted by Ballard
    I commend your attitude. As somebody that can rarely afford a holiday, it is nice to hear that from somebody who can.
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