July 2013 - BoE rates left on hold

Graham_Devon

wotsthat wrote: »

Only seems like yesterday (oh it was) that you were saying rates should be set according to the needs of the economy and not dictated by the needs of different groups within the economy. That view seems to change depending on whether they're on the naughty or nice list.

Well I don't recall that. More barking. More laying made up nonsense at my feet for you to bark at.

Pop up a quote of me saying that as I can't find it.

Graham_Devon

N1AK wrote: »

With respect Graham you're not an economist. Do you have any idea at all what would have happened if the pound had remained more highly valued?

I know, I'm far from it! But then try and find a correct economist .

That's why I rely on reports...and the report said the low pound had not boosted exports as was stated by many on here and also the BOE.

It can't be purely coincidence that Mervyn king then came out and stated the pound had fallen far enough? It was $1.48/49 at the time.

Sir Mervyn King, the outgoing Governor of the Bank of England, yesterday struck an upbeat tone on economic prospects this year, despite the UK flirting with an unprecedented triple-dip recession.

In an abrupt change of tone for the outgoing Bank of England governor, Sir Mervyn said sterling was now "properly valued", reflecting fears that the rapid fall in the pound this year will raise inflation and squeeze household budgets further.

Since the autumn, the governor has repeatedly talked down the pound, leaving sterling almost 6% lower against Britain's main trading partners than at the start of the year. But he now thinks things have gone far enough, he told ITV News: "We are moving to a properly valued exchange rate. I think we're probably there".

N1AK

grizzly1911 wrote: »

Edited my post for you;)

Or it simply means we can afford less products from abroad.

Yes that does make more sense. That said a UK service/product which uses some foreign services or products would still become more attractive compared to an the same service/product if it were entirely foreign.

Additionally the money printed (to lower the value of the £) has been spent to buy things by the state. For the £ to remain highly valued this money either couldn't have been spent or there would need to be significant tax increases to get a larger fraction of the highly valued £ into the governments hands.

ILW

N1AK wrote: »

Yes that does make more sense. That said a UK service/product which uses some foreign services or products would still become more attractive compared to an the same service/product if it were entirely foreign.

Additionally the money printed (to lower the value of the £) has been spent to buy things by the state. For the £ to remain highly valued this money either couldn't have been spent or there would need to be significant tax increases to get a larger fraction of the highly valued £ into the governments hands.

But if much of that extra value is simply converted into inflation, where is the advantage? Except as a way of writing down debt.

OffGridLiving

Graham_Devon wrote: »

Heres a tip....for once, stick to the topic instead of barking at me all the time. It's one thing to bark at me when I have said something, but inventing your own scenario and laying it at my feet so you can bark at me again is just poor form.

Weren't you doing exactly this to me on a different thread where I was debating the reasons why the Scots delayed their Right to Buy legislation?

Practice what you preach?

Just in case you forgot the exchange:

Graham_Devon wrote: »

OffGridLiving wrote: »

I can see both the benefits and disadvantages of Right to Buy but I have no axe to grind one way or the other as I've never lived in a LA home and I don't live in Scotland. Someone asked a question of why the legislation was not being brought in immediately and so I gave a possible reason. End of story really.

So you only now have opinions on something if it impacts you personally?

You'll be a little quieter from now on then

Infact it begs the question as ot why you are on this thread grinding your axe against people in the first place!

ess0two

Me thinks Graham needs a few days away from this board,seems to be getting hot under the collar and barking a lot.

grizzly1911

N1AK wrote: »

The immigrant workforce isn't actually a flaw though. Very little of the fruit value goes directly to the pickers, much of it goes to the [STRIKE]farmer[/STRIKE] supermarket .....

Furthermore if the £ decreased in value by 10% then the farmer could increase wages by 10% without increasing his relative cost, this could lead to wages being high enough to attract the odd, normally bone idle, Lincolnshire lad :rotfl:

Fixed that for you.

A bit thick but I don't follow how the £ decreasing in value would allow UK wages to be increased without increasing the cost within the UK. If he exported all his goods perhaps.

Perhaps the Lincolnshire lad has got educated above and beyond, jam tomorrow and aspires to a better future.

N1AK

Graham_Devon wrote: »

It can't be purely coincidence that Mervyn king then came out and stated the pound had fallen far enough? It was $1.48/49 at the time.

And we're currently at around $1.5 per £1... we've seen it drop into the low 1.4s twice since the financial crisis. It went below 1.4 in the early part of the last decade.

The Euro exchange rate is actually up on where it has been for most of the last 4 years. There's nothing to be concerned about if the £ drops a few more pence against the $

grizzly1911

grizzly1911 wrote: »

+2 - 3% on the tickers:beer:

+3 - 5% amazing.

A true Messiah, why did we wait so long.

N1AK

grizzly1911 wrote: »

A bit thick but I don't follow how the £ decreasing in value would allow UK wages to be increased without increasing the cost within the UK. If he exported all his goods perhaps.

I don't believe I have at any point suggested that a cheaper £ decreases the cost of living or goods to UK customers. If I have I apologise but that certainly isn't my position.

The supermarket will take its lb of flesh regardless of whether the fruit comes from Wessex, Westphalia or the 7th level of hell