Another Downgrade Looms As Gas Runs Out

DecentLivingWage

Worth discussing the currency we use to buy gas - and perhaps making the connection with Britains now-falling pound , dropping again today on news that a second ratings agency is set to downgrade the UK according to the Times

http://www.thetimes.co.uk/tto/business/economics/article3721237.ece

Generali

The pound has been rising for the past 2 weeks vs the USD and is back to where it was at the start of March.

I don't know why you think the pound fell yesterday, it was up from 1.5185 to 1.5231

http://au.finance.yahoo.com/echarts?s=GBPUSD%3DX#symbol=;range=1d;compare=;indicator=volume;charttype=area;crosshair=on;ohlcvalues=0;logscale=off;source=undefined;

vivatifosi

For me the key issue is that we may run out of gas and the potential impact that could have on the economy, as featured in the Independent:

http://www.independent.co.uk/news/uk/home-news/britain-faces-the-prospect-of-gas-rationing-for-the-first-time-8544975.html

We only have a few days reserves left. However if it is still this cold in a couple of weeks time, it won't just be the gas prices we will need to concern ourselves with, but also the impact on farming and hence food prices.

DecentLivingWage

we pay for our petrol in dollars and the pound is falling after the downgrade, now another downgrade, questions are will the the resulting shock of confidence in the uk budget cause another fall and prices to go up and where will we have to buy our gas from.....

CLAPTON

low exchange rate will help UK exports, create more jobs, reduce youth unemployment , creat incentives to become more energy efficient and to improve security of energy supply

C_Mababejive

ofgem are to blame. They have decimated the gas industry in this country.

DecentLivingWage

Apparently suppliers will be 'incentivised' to offer us more gas! (doublespeak for 'its a massive auction for EU gas and we are being blackmailed to Pay More!! in euros?????) This is linked to the terrible economy Plan A, sorry to bring bad news but Things Can Only Get Worse - Cons are lowering pound on purpose and absolutely everything we need will cost more cos of transport heating cooling etc Gas Prices are going up again!

CLAPTON

Indeed so

the government is deliberatingly trying to reduce the exchange rate

to improve exports by reducing their price,
to discourage imports by causing them to become more expensive,
to create more UK based jobs,
to reduce unemployment
to create Uk alternatives to foreign imports
to encourage better energy efficiency
to improve insulation etc in UK homes and businesses
to encourage use of energy effcient cars
to reduce transport energy needs
to increase people taking UK holidays
etc

robmatic

DecentLivingWage wrote: »

we pay for our petrol in dollars and the pound is falling after the downgrade, now another downgrade, questions are will the the resulting shock of confidence in the uk budget cause another fall and prices to go up and where will we have to buy our gas from.....

See post #2 courtesy of Mr Generali.

CLAPTON

Thrugelmir

CLAPTON wrote: »

low exchange rate will help UK exports, create more jobs, reduce youth unemployment , creat incentives to become more energy efficient and to improve security of energy supply

Sterling has already depreciated 25%. So the underlying weakness in the economy has become apparent. The UK's dependence on financial services, oil and gas, and public sector spending means that the export sector is very small. Discount cars from manufacturing output and what's left isn't large enough to have a material impact.