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Pound going through the floor.
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Well done stevie, all you've done is show us that you don't know the difference between a point based system and one around work permits.0 -
The govt announced a complete change of direction in fiscal policy from aiming for a zero deficit and austerity to something much loser and this resulted in a fall in the currency just as everyone who argued for a sound fiscal policy had always said would happen if the market lost confidence that the govt was concerned about the level of debt. @(For example this was exactly the argument the Tories used against Labour in the last GE campaign, a loss of confidence in the govt over fiscal policy as labour were suggesting that austerity could be abandoned would lead to GBP weakness and eventual interest rate increases - looks like they were right)
Brexit is just a smokescreen for what is really driving GBP.
Don't forget economic theory predicts a 'J' curve effect from a currency devaluation so the balance pf payments is likely to look pretty scary for the next 12-18 months....
What came first the Chicken or the Egg?'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0 -
Well done stevie, all you've done is show us that you don't know the difference between a point based system and one around work permits.
How is that? I just referenced an article from Forbes magazine
Perhaps you better explain. 'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0 -
I wonder why we don't just devalue it further, or do this before if it is excellent for the economy? I mean, it's so simple.
Well you clearly don't understand the issue, but don't worry, you are not alone.
The Government used to set the Exchange Rate for Sterling. The last PM to devalue the pound was Harold Wilson in 1967.
The pound has floated freely since 1971, when Nixon effectively ended the Bretton Woods system. Since then, it's value has ranged from $1.05 to $2.600 -
Just to get away from the puerile bickering and name calling for a second.
Yes, the pound has been devalued by 15% or so since June 23rd.
This is excellent for the economy.
It makes our exports cheaper. It makes imports more expensive. It helps British Business and will halp to reduce our balance of trade deficit.
It'll be good for British businesses as long as they don't need to import anything in order to do business. Our manufacturing & retail sectors are screwed, for instance, but our service (consulting, design, etc) industry will do alright, because we're suddenly cheaper than we used to be.
The electricity we import from France just got more expensive. So did the coffee beans we all run on. And most of our fruit, plastic goods, raw metals, and so on. Most of that will equate to a substantial price hike across the board, unless the GBP stabilizes again.0 -
Well you clearly don't understand the issue, but don't worry, you are not alone.
Didn't you quite literally just say that you wanted to get away from the puerile name calling and bickering?
I understand that there is no such thing as a free lunch. Just like we can't print our way out of debt, we can't just devalue the currency with no consequences. If we could, everyone would just do it.
This is a market reaction to a perceived risky country. I'd say it's you who doesn't understand it.0 -
I wonder why we don't just devalue it further, or do this before if it is excellent for the economy? I mean, it's so simple.
Oh no!
We were doing it, by decreasing interest rates and through QE. Obviously its better to get something for the privilege but, that's the direction we are taking with our currency.Proudly voted remain. A global union of countries is the only way to commit global capital to the rule of law.0
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