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Quid to Drop Further in Value
Comments
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Not to say that there are not big structural issues for the GBP - normally a fall in a currency would push up exports and domestic supply and reduce imports however a lot of the stuff we import is extremely price inelastic (anyone for not having food as it has got more expensive?) so the gbp fall may actually worsen the imbalance in the short and even medium term.
Spot on.
Thanks to the direction that the UK economy was allowed, nay encouraged, to take under Brown's stewardship, the old "devalue our way out of trouble" trick isn't quite as effective as it normally would be.
The fact that the recession is global and it's manufacturing that gets the boost from devaluation isn't exactly great news either for the effectiveness of the policy.
If indeed, it was a policy for the pound to collapse like it has. Some devaluation, yes, but it looks like it went a lot further than it should have.--
Every pound less borrowed (to buy a house) is more than two pounds less to repay and more than three pounds less to earn, over the course of a typical mortgage.0 -
the old "devalue our way out of trouble" trick isn't quite as effective as it normally would be.
Damn.........that's the only 'trick' they've got (or ever had !!)
Someone'll have to think up a new idea !!!'In nature, there are neither rewards nor punishments - there are Consequences.'0 -
Damn.........that's the only 'trick' they've got (or ever had !!)
Someone'll have to think up a new idea !!!
Gordon is ahead of you - borrow our way out of debt.--
Every pound less borrowed (to buy a house) is more than two pounds less to repay and more than three pounds less to earn, over the course of a typical mortgage.0 -
Jim "Jolly" Rogers' words of wisdom are here:
http://www.bbc.co.uk/radio/podcasts/wbnews/
If indeed, it was a policy for the pound to collapse like it has. Some devaluation, yes, but it looks like it went a lot further than it should have.
Things can start feeding on themselves and spiral out of control - what do we export that you would want to buy if it was 15 - 20% cheaper. Waterford glass? Wedgewood china? (woops too late?)0
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