Economists, not the economy, are the only ones taking a battering from Brexit

Tromking

CLAPTON wrote: »

utter garbage , the pound was massively 'stronger' in 1945 but we were all massively poorer
you need to consider what you can buy from an hours labour

Be patient with them Clappers.
The so called 'weak' pound is one of the few things the Remainiacs can cling onto at the moment.

ruperts

CLAPTON wrote: »

utter garbage , the pound was massively 'stronger' in 1945 but we were all massively poorer
you need to consider what you can buy from an hours labour

Given that a lot of the things an average person buys are sourced from abroad they can now get less from an hours labour.

I don't think comparisons with the period directly after WW2 are valid. Why not just compare to one year ago, or five or ten years ago, when we could get a lot more from an hours labour.

globalds

ruperts wrote: »

Given that a lot of the things an average person buys are sourced from abroad they can now get less from an hours labour.

Do you think that might also lead to people sourcing similar or alternative items that are produced here that have not gone up due to exchange rates ?

That would be a good thing ?...Right ..

Conrad

ruperts wrote: »

Is the pound being at its weakest for decades not enough of a bad thing? We've basically devalued our currency and that brings some benefits, might even prevent a domestic recession, but we're still a lot poorer as a country and as individuals from an international perspective.

At last a realistic chance of rebalancing our decades long trade deficit problem. In a world of deflation a falling currency is precisely the pressure valve needed.

Conrad

globalds wrote: »

Do you think that might also lead to people sourcing similar or alternative items that are produced here that have not gone up due to exchange rates ?

That would be a good thing ?...Right ..

Germany's Opel which exports certain cars under the Vauxhall badge into the UK has today announced reducing hours and cutting thier workforce precisely because thier cars are now rendered less competitive whilst UK made cars are more competitively priced. Great news and another example of the aces we hold in the negotiation

Conrad

posh*spice wrote: »

Spoken like a true Remoaner

We endlessly pointed out nothing would change for two years and in that time business would go though an orderly transition ready for handover day. There will be no crash, no recession, why would there be. All parties want trade to continue unhampered as we pointed out over and agin to the Brussels cult.

CLAPTON

ruperts wrote: »

Given that a lot of the things an average person buys are sourced from abroad they can now get less from an hours labour.

I don't think comparisons with the period directly after WW2 are valid. Why not just compare to one year ago, or five or ten years ago, when we could get a lot more from an hours labour.

I was responding to a post that mention 'decades' as in

Is the pound being at its weakest for decades not enough of a bad thing?

clearly an economic illiterate statement.
If you meant to discuss the last 8 weeks then say so.
The pound was overvalued and was being supported by the UK selling off its businesses and assets (and with them a long term flow of dividends and profits) and of course by massive foreign currency borrowing.
Sometimes it is better not to sell the family silver and incur massive borrowing just so you can enjoy a temporary better short term stand of living.

Conrad

AFF8879 wrote: »

Then again...the scariest thing about this...is that it is all being decided by politicians, rather than experts or businesses....and they do not always act rationally :-)

And the EU rules are not decided by politicians then, but by business and experts, well I never.

For the zillionth time economists have a truly appauling record when it comes to big ticket predictions, anyone relying on them for Brexit guidance was a tool

ruperts

globalds wrote: »

Do you think that might also lead to people sourcing similar or alternative items that are produced here that have not gone up due to exchange rates ?

That would be a good thing ?...Right ..

Quite possibly, but those domestically produced products are already more expensive, so the consumer does not win.


A devaluation of a currency does have some advantages, that's why China does it to its own currency regularly. But those advantages are rarely felt by ordinary people. CEO's are no doubt delighted with the prospect of being able to buy more cheap UK labour. Their employees, maybe not so delighted.

ruperts

CLAPTON wrote: »

I was responding to a post that mention 'decades' as in

clearly an economic illiterate statement.
If you meant to discuss the last 8 weeks then say so.
The pound was overvalued and was being supported by the UK selling off its businesses and assets (and with them a long term flow of dividends and profits) and of course by massive foreign currency borrowing.
Sometimes it is better not to sell the family silver and incur massive borrowing just so you can enjoy a temporary better short term stand of living.

The pound is at its weakest for decades. That's not economically illiterate, it's a plain fact.


Clearly the post war period can't be viewed in any way as normal, so it's useless to compare then to now. Comparing the last say 30 years is fine. The pound is at its weakest in the last 30 years.