The pound

Kohoutek

StevieJ wrote: »

1981-1985 230% devaluation :eek: Who was in charge then
BTW when was that recovery back to 2.40?

"When Sir Geoffrey delivered his final budget in 1983 the pound was down to $1.51.

His successor, Nigel Lawson, suffered the consequences of a sustained anti-inflation campaign by the US Federal Reserve under Paul Volcker.

And in January 1985 the pound hit its all-time low of $1.03, prompting President Ronald Reagan's memorable comment: "It is not the dollar that is strong; it's other currencies that are weak."

So, within five years the value of the pound had halved again.

Eventually the US agreed the strong dollar was not helping world trade. Following the Plaza Accord the pound gradually recovered, despite a blip after Mr Lawson quit as Chancellor in 1987."

http://news.bbc.co.uk/1/hi/business/7091089.stm

worldtraveller

Sterling currently down to USD 1.5326, a new 9 month low.

Jonbvn

Kohoutek wrote: »

...but sadly we're never going to go back the 70s when manufacturing was the majority of our economy.

Are yes the golden days, with perpetual strikes, black-outs and huge piles of rubbish strewn across our cities.

I am not sad we are never going back!:)

Generali

StevieJ wrote: »

Pretty handy if, as Gen and Dopester believe the major threat is still deflation

Hi StevieJ

I have tried to make it clear that I do not predict deflation and never have. I do however think it's a much higher risk than high inflation (say 8%+) and the risks of deflation have been increasing throughout the Great Recession* and are easily as high now as they've ever been given the M4 figures falling or increasing at a lower rate and the savings level rising quickly (can't find the data for the latter, sorry).

I think the most likely outcome is low or flat inflation (prices falling 0.2%pa or something is flat inflation, not deflation). The risk of sustained deflation is real but still not the most likely outcome IMO.

The risk of hyperinflation is roughly nil unless the Government does something really stupid, even by the standards of socialists.

All IMVHO of course.





*The Great Recession is the best description I've heard for what has happened thus far to the World's economies. It's kinda bad but coulda been worserer.

Graham_Devon

worldtraveller wrote: »

Sterling currently down to USD 1.5326, a new 9 month low.

1.5268 now.

New 9 month low!

chucky

Graham_Devon wrote: »

1.5268 now.

New 9 month low!

you may be looking at it one dimensionally - what's it like against the Euro?

it's probably a result of the USD getting that bit stronger against all currencies than the £ getting weaker (maybe)

it would be interesting to see this between all 3 currencies to see which is actually the stronger

Graham_Devon

chucky wrote: »

you may be looking at it one dimensionally - what's it like against the Euro?

it's probably a result of the USD getting that bit stronger against all currencies than the £ getting weaker (maybe)

it would be interesting to see this between all 3 currencies to see which is actually the stronger

Down 0.41%.

1.1332

You'd also get 3 yens less today compared to yesterday

chucky

Graham_Devon wrote: »

Down 0.41%.

1.1332

You'd also get 3 yens less today compared to yesterday

lol - i meant over the last 9 months!!

lemonjelly

It's a valid query. General consensus appeared to be (a short time ago) that the euro may be doomed!

However, the £ continues to fall in value. I can't figure out why this is the case?

& it is annoying, as there are a couple of items I have thought about purchasing from the US, however the exchange rate puts me off. & I'm more put off this week than lst week!

What's going on?

Where's the inspector?

purch

The problems that are facing some parts of EuroLaLaland, and that are dragging the EUR lower, are not disimilar to the problems facing the UK and GBP.