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

alchemistkevin

No, you're not the only one worried but I'm afraid we can't do much except pay more for the imported goods which unfortunately everything is!

RayWolfe

purch wrote: »

That's a rather sweeping statement.

I think you will find that the OP has hit this board running with a whole series of sweeping statement, most, if not all, of which have very little relevance to anything much in particular ... certainly not to money saving ... but perhaps to debate.

Quietmanc

If the Pound reaches parity(God Forbid) With 'the synthetic experimental currency',as PURCH calls it.(very well put IMO) will that then signal a seamless abolition of the Pound on the grounds that it will then be superfluous? Just interested in what you guys think.

earlgrey_3

Quietmanc wrote: »

If the Pound reaches parity(God Forbid) With 'the synthetic experimental currency',as PURCH calls it.(very well put IMO) will that then signal a seamless abolition of the Pound on the grounds that it will then be superfluous? Just interested in what you guys think.

Don't think there's anyone who'd suggest moving to the Euro just on the grounds that the sums are easy but if it did come under siege and caused problems it might re-open the arguments.

The advantage of our own currency is that theoretically we can to some extent control the exchange rate to keep us competitive. Notable that the first countries into recession have been in the Eurozone: first Ireland then Germany this week. No surprise that a multi-outlet BMW distributor near me has gone into administration either. Likely to be followed by Italy and France then us.

The disadvantage is that it's now a small currency that can be manipulated by those nasty speculators if they've a mind to.

EdInvestor

alchemistkevin wrote: »

No, you're not the only one worried but I'm afraid we can't do much except pay more for the imported goods which unfortunately everything is!

Yes it's really noticeable how prices of all the Made in China goods on the High Street are zooming up, isn't it?

Haven't seen a new clearance sale for ........ .. gosh, it must be minutes.... :rolleyes:

Jennifer_Jane

I care - I'd love the Pound to drop 3 times a year, against the currency from which I receive a pension - South Africa. Unfortunately, that currency has also dropped more than the Pound. So all hopeless!

Jen
x

jon3001

http://news.bbc.co.uk/1/hi/business/7727399.stm

Sterling takes a pounding :rolleyes:

This time last year, bargain-hungry shoppers headed across the Atlantic to New York's swanky department stores in droves.

With the pound worth more than $2, they sought out cheap iPods, designer clothes and gourmet restaurants.

But few will be flying to New York to do their Christmas shopping this year.

eeja

purch wrote: »

Don't they ?

That's a rather sweeping statement.

Only reason I say this is when I post about the plunging pound on this forum almost everyone replying seems indifferent or think its a good thing as exports will become cheaper !
The fact is that there is not much of a manufacturing base left in the UK to benefit from the pound's devaluation and service industries are the main source of foreign currency so the pound collapsing is in my view really bad news and we AND the country all become poorer At current exchange rates France has already overtaken the UK in GNP and Italy will soon do so also !

eeja

purch wrote: »

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.

Yes I remember only too well when the pound reached $1.05. The headline in the London Evening Standard spoke off 'parity' parties being arranged throughout the City. Of course there were no parties as the pound did not reach parity !! ( a bit of nostalgia)

eeja

jon3001 wrote: »

http://news.bbc.co.uk/1/hi/business/7727399.stm

Sterling takes a pounding :rolleyes:

This time last year, bargain-hungry shoppers headed across the Atlantic to New York's swanky department stores in droves.

With the pound worth more than $2, they sought out cheap iPods, designer clothes and gourmet restaurants.

But few will be flying to New York to do their Christmas shopping this year.

True . What is happening now is that the vultures from all over the world are descending on London to buy up all the Rolex's and Mercedes cars and other luxury goods at bargain prices in pound terms before their list price goes up