Devalue pound to boost economy, says JML founder Entrepreneur John Mills fears Britai

Generali

If there are 2 things I have learned about economics in practice and the way it applies to business:

1. The pound is always too high
2. Interest rates are always too high

It's a bit like asking a fat bloke if he's got enough cake on his plate. There's only ever going to be one answer.

Thrugelmir

Generali wrote: »

If there are 2 things I have learned about economics in practice and the way it applies to business:

1. The pound is always too high
2. Interest rates are always too high

It's a bit like asking a fat bloke if he's got enough cake on his plate. There's only ever going to be one answer.

So Gen do you think that post war UK economic policy requires a major rethink. Given the position the UK finds itself in.

vivatifosi

When I first saw this, my thought was not is there a problem with the British economy, though I am sure there are many.

Rather, I wondered to what extent the fixed price stores such as Poundland where eating at JML' s margins through copying their products. I know it happens. The enemy of such stores is inflation. Therefore what better way to remove that challenge than to argue that for the benefit of economy we need greater inflation. All presented as an altruistic concept for benefit of wider economy.

purch

Sigh.............exchange rates are relative, and in the World of floating exchange rates the relative level of a currency is set by market forces.

Some areas of the economy would benefit from a weaker currency, and some parts from a stronger one, nobody ever has the prefect exchange rate (apart from China :eek:)

Thrugelmir

vivatifosi wrote: »

Rather, I wondered to what extent the fixed price stores such as Poundland where eating at JML' s margins through copying their products. I know it happens. The enemy of such stores is inflation. Therefore what better way to remove that challenge than to argue that for the benefit of economy we need greater inflation. All presented as an altruistic concept for benefit of wider economy.

Inflation is the British cure. Greater dangers of deflation. Given that the available ammunition has already been fired. Monetary expansion has run it's course as a policy.

grizzly1911

Thrugelmir wrote: »

Issues that are faced all inter link. As are structural deficiencies in the UK economy. As I've said before. Long road ahead with no quick fixes.

A long road of gradual decline until we meet the other worlds economies on the rise somewhere. The question is how to slow that rate of decline in the meantime.

chewmylegoff

I also fear the Britai, they sound like a warlike, violent people.

wotsthat

I like the idea that government are all powerful sat in a control centre and altering the exchange rate from 1.65 to 1.39 at the flick of a switch.

It's the same place where they control house prices. After 5 years of falling prices they've now repaired the equipment and there's now someone feverishly pressing the '+' button. I imagine him to look like Desmond from Lost.

purch

grizzly1911 wrote: »

A long road of gradual decline until wed

What's happening on Wednesday ??

Is this the Apocalypse.............you could have given me more warning, I haven't got any tins of beans left :eek:

grizzly1911

purch wrote: »

What's happening on Wednesday ??

Is this the Apocalypse.............you could have given me more warning, I haven't got any tins of beans left :eek:

Thanks.

I can trade you some fine Pilchards from deep storage or possibly a can of Prairie Donkey.