Pound going through the floor.

CLAPTON

Herzlos wrote: »

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.

what's the right value for the pound?

wotsthat

Nick_C wrote: »

For Joe Public, the biggest effect will be to make imported goods and foreign holidays more expensive - too expensive for many. People will spend their money in the UK instead.

I'm delighted that Brexit means holidays in Ingoldmells and stuff I used to enjoy buying I can no longer afford. Hooray for Brexit.

..and only for 5 years you think?

CLAPTON

wotsthat wrote: »

I'm delighted that Brexit means holidays in Ingoldmells and stuff I used to enjoy buying I can no longer afford. Hooray for Brexit.

..and only for 5 years you think?

get a better paying job: lots available in the EU at the moment; I believe Greece is especially short of skilled labour

wotsthat

CLAPTON wrote: »

get a better paying job: lots available in the EU at the moment; I believe Greece is especially short of skilled labour

No need. I've already forward bought a holiday for next year. For the second holiday I'm budgeting exactly the same in Sterling as this year. Johnny Foreigner will be seeing less of me in restaurants but more in supermarkets picking up stuff for the BBQ.

A good chunk of the people who voted for Brexit because they don't like foreigners probably now can't afford a foreign holiday. Who says there's no such thing as karma?

ruperts

We now have a genuinely third world currency and people think that's good because wemight get some unskilled jobs in manufacturing out of it. Lol.

setmefree2

mwpt wrote: »

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.

Because we have a floating exchange rate. Lots of countries would love a devalued currency right now to get some inflation.

We will get some inflation and hopefully a rise in interest rates.

It's not as black and white as you seem to think.

CLAPTON

ruperts wrote: »

We now have a genuinely third world currency and people think that's good because wemight get some unskilled jobs in manufacturing out of it. Lol.

what's the correct value for the pound?

Nick_C

ruperts wrote: »

We now have a genuinely third world currency and people think that's good because wemight get some unskilled jobs in manufacturing out of it. Lol.

Quite the opposite. A third world currency is one that you cannot buy in a foreign bank, that you cannot export, and that has an exchange rate set at an artificial level.

TrickyTree83

ruperts wrote: »

We now have a genuinely third world currency and people think that's good because wemight get some unskilled jobs in manufacturing out of it. Lol.

I don't think you know the meaning of "third world currency".

I've recently come back from Ukraine. 1 GBP is worth 33 UAH (have you even heard of that currency before?), well that's closer to a "third world currency". I'm sure you've heard on the news about people who earn a dollar a day. That's true poverty.

Where someone can do the same job teaching kids all day in class and come out with about $8 for the day. Then when you go shopping and milk will cost you $2 and meat $4 if you're lucky.

setmefree2

Herzlos wrote: »

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.

Retail isn't screwed. They buy little from europe - most stuff comes from China which has devalued the Yuan 10% since Brexit. Most clothes come from India or Bangladesh. Most "Stuff" in the shops is cheap as chips (which is also why we can't be bothered making it ourselves).

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.

I think we'll live.