How long before the pound is worthless?

sabretoothtigger

jyonda wrote: »

Wouldn't a weak pound make UK Plc exports more attractive thus stimulating the economy?

Except we operate a trade deficit. The finance industry accounts for 10% of our GDP , insurance is probably more important then manufacturing exports

itsnever2lateisit?

mr_jetlag wrote: »

I've seen this argument a fair few times. There is more to services than just finance.

Services sector growth is mainly driven by innovation and this is where I think the UK can retain its growth. Both scientific research and R&D are thriving (if woefully underfunded by the Gov) and if we are to recover, it's by creating NEW markets not competing on price in established ones. The US is investing billions in the teeth of a recession to create new "green" technology in the expectation that the recovery will mean rises in the oil price, again...

There's no point making cars in the UK with UK wages when you can create new kinds of software, games (a booming industry at the moment) and other intellectual property (films, music). The relatively low cost versus our competitors (while the £ remains down vs the $) will help move more companies here - MSoft, Google, HP are all setting up outside the M25.

Where I agree we need to retain some heavy industry is in the commodities / resources sector (oil, steel, and the equipment to make/mine them) because Britain still has a huge stake in energy and commodities without having much to extract within its borders.

IIRC over half of cars made in the UK are exported. Honda have announced that their supermini 'Jazz' will be made here from next year, as it is cheaper than shipping it halfway round the world, and strangely enough the MGTF LE500 is assembled here by manual labour (eg Spanners and screwdrivers and manual labour) from components made in China by robots

ad44downey

rizla01 wrote: »

Could it happen?

It has in other countries and they say that we are in for a VERY rough time, so what is to stop the money in your bank becoming valueless?

Yes, it's going to happen. In about 18-24 months time.

amcluesent

>Yes, it's going to happen<

It's part of Clown's 'scorched earth' strategy to slash interest rates until the £ sinks to parity with the Euro. Then the pension thief will announce that 'the pound in your pocket' is the same as a Euro, so what's the harm in joining the single currency. The sheeple will love their cheap mortgages!

By this means, he'll tie all future governments into socialist, central planning from Brussels and secure him and his family very well paid non-jobs in the Commission and a pension worth millions.

wagdog

Count_Dante wrote: »

When Wile E Coyote ran off the edge of a cliff, he simply had to avoid looking down to stop gravity taking effect. I do not believe economic matters are the same.

Well, actually your Looney Toon metaphor for the bailout is particularly apt.

thor

amcluesent wrote: »

>Yes, it's going to happen<

It's part of Clown's 'scorched earth' strategy to slash interest rates until the £ sinks to parity with the Euro. Then the pension thief will announce that 'the pound in your pocket' is the same as a Euro, so what's the harm in joining the single currency. The sheeple will love their cheap mortgages!

By this means, he'll tie all future governments into socialist, central planning from Brussels and secure him and his family very well paid non-jobs in the Commission and a pension worth millions.

You have fallen for the Daily Mail's bleatings hook, line and sinker!
I have been thinking for a while now we need the tories to win the next election....................to remind people who have forgotten the 80s and early 90s how things could get even worse under the CONservatives.