Pound collapses on dour BoE report and prospect for lower rates.

eeja

Seems most people on this forum do not care if the pound drops to parity against the euro and dollar !
Anyhow just wanted to let readers know whats happening to their currency courtesy the Brown, Darling & King trio.

ANNELIESE

Hi,

I care,I am going to Florida for Xmas,wanted rto buy Us dollars before rate started to plummet,unfortunately money tied up in Icelandic bank.

Reaper

The effect of sterling dropping in value is mixed.

On the negative side it can be seen as an indicator of other people's faith in the economy, though it has more to do with relative interest rates. It also means people's holiday money does not go as far and imported goods cost more.

On the positive side it makes exports cheaper which helps the balance of trade and strengthens the economy.

The worst thing to do is to try to keep it at an artificially high level (eg gold standard, ERM) when it needs to drop.

purch

Seems most people on this forum do not care if the pound drops to parity against the euro and dollar !

Don't they ?

That's a rather sweeping statement.

mrposhman

eeja wrote: »

Seems most people on this forum do not care if the pound drops to parity against the euro and dollar !
Anyhow just wanted to let readers know whats happening to their currency courtesy the Brown, Darling & King trio.

Through the "good" times our rates were higher than they were in the states, hence when downturns occur this was always going to happen.

What would you have us do??

Keep rates high for homeowners and allow more and more to be repossessed due to not being able to afford repayments.

Whats done is done, we have to move forward and try to get the economy back on a sound footing and this has to include falls in interest rates which has obviously had the negative effect on our currency that we have seen.

gmtomkins

eeja - I wasn't aware there was much we could do about it - or do you know something we don't?

purch

When "Cable" dropped to 1.0508 in 1985, it was trading back at 1.60 within 12 months, and at 1.85 1989.

Currently it is difficult to quantify how much of the drop against the USD is due to deleveraging and the liquidation and redemption of trades in order to reduce risk and raise Ca$h.

IMHO the continued falling value against the synthetic experimental currency (Euro) is far more worrying, and a further blow to the credibility of Brown and his profligate ways.

itsnever2lateisit?

Afraid I am awinner in this as I am paid in CHF:D so I get a pay increase each month, but there was a time when I got less each month.

But for the good of the country we need a weaker pound, trouble is we no longer have the manufacturing capicity to take advantage of it

amistupid

eeja wrote: »

courtesy the Brown, Darling & King trio.

Do they swing or play the blues?

JayTee99_2

amistupid wrote: »

Do they jazz or play the blues?

yep, King on drums, Darling on bass and of course our Gordy as lead singer

ahh.. i'll never forget those great little numbers "Feelin' your pain", "42 days", "We're doin' all that we can" and not forgetting "Gettin' on with the job"

wonderful

amistupid

JayTee99 wrote: »

yep, King on drums, Darling on bass and of course our Gordy as lead singer
wonderful

Perhaps they'll become a satirical Abba tribute band and release "Lack of money money money"