FYI: Pound hits three-year low against euro

CLAPTON

mwpt wrote: »

Potentially.

Personally I liked the fact that the currency I earned in was getting stronger again, almost reaching the giddy heights of 2007 before our banking system had to be bailed out. My holidays were cheaper and my dream of retiring, potentially to somewhere sunny in Europe was getting easier.

But I understand that there are an incredible amount of altruistic brexit voters around who are very concerned about our exporters and are happy to sacrifice their own purchasing power for big business.

I'm sure that a combination of selling all UK assets and borrowing loads of foreign money, so we can spend more than we earn, is a fool proof way of securing a decent future for our children.

buglawton

mwpt wrote: »

Potentially.

Personally I liked the fact that the currency I earned in was getting stronger again, almost reaching the giddy heights of 2007 before our banking system had to be bailed out. My holidays were cheaper and my dream of retiring, potentially to somewhere sunny in Europe was getting easier.

But I understand that there are an incredible amount of altruistic brexit voters around who are very concerned about our exporters and are happy to sacrifice their own purchasing power for big business.

I like free money too. But I grew up.

Thrugelmir

mwpt wrote: »

If we continue to devalue the currency further, we could probably compete with Malaysia, China, India and so forth for the mass manufacturing business too. I don't know why everyone doesn't do it.

Chinese has been devaluing the Yuan. Down 14.3% in the last year. Now at it's lowest level against the US$ since 2010. Rumours suggests China is trying to avert a domestic crisis by exporting it's over capacity in steel, shipbuilding, chemicals, plastics, paper, glass, and even solar panels, to the rest for the world.

buglawton

Think China's been doing that for the last 5 years already.
And in fact the RMB's been expensive against the £ ever since Brexit.
But yes we're in 'competitive devaluation' territory again. At least the UK had an honest excuse for its devaluation.

mwpt

buglawton wrote: »

I like free money too. But I grew up.

It is good that you have grown up. Often when people grow up they stop making flippant remarks, so perhaps you still have a little while to go.

Also, fascinating that there are suddenly so many altruistic brexit supporters around, quite happy to sacrifice their own spending power in favour of exporters. I would not have expected this. The economy seemed the least of your concerns during the campaign.

wotsthat

Thrugelmir wrote: »

Where are consumers going to get the money from once PPI dries up? How will rising prices of imported product impact the economy once hedged currency positions expire? Nor forget China is exporting deflation.

PPI money isn't from the money tree. It's money that would otherwise have been paid in dividends and bonuses and consumed.

The main difference is that PPI recipients probably spend it quicker than a drunk sailor on shore leave.

wotsthat

buglawton wrote: »

I like free money too. But I grew up.

It's a good job the leave campaign didn't mention Brexit might mean less free money.

CLAPTON

mwpt wrote: »

It is good that you have grown up. Often when people grow up they stop making flippant remarks, so perhaps you still have a little while to go.

Also, fascinating that there are suddenly so many altruistic brexit supporters around, quite happy to sacrifice their own spending power in favour of exporters. I would not have expected this. The economy seemed the least of your concerns during the campaign.

It is truely staggering that some people don't think the best model is borrowing huge sums of money for current consumption and let the future generation to pay for it all.

Only economic illiterates think that the purpose of current trading a/c balance is to 'subsidise' exporters. Most economically literate people realise that imports (like food, fuel, gas , electronic etc) need to be paid for, preferrably not by selling all UK assets or by borrowing huge amounts of foreign money.

However, as you say you hope to leave the UK and live elsewhere I guess you have no long term interest in the welfare of the UK people.

Herzlos

wotsthat wrote: »

PPI money isn't from the money tree. It's money that would otherwise have been paid in dividends and bonuses and consumed.

The main difference is that PPI recipients probably spend it quicker than a drunk sailor on shore leave.

It got a lot of money flowing through the economy until it dried up though; I haven't heard of anyone with PPI money that put it into savings or their mortgage; usually paying off some debts and then treating themselves.

System

The pound should keep on falling....