The value of the British Pound

schiff

CLAPTON wrote: »

however, I seem to be a lot better off than in 1970

maybe there is another variable that is missing from this analysis of trade weighted currency value, that affects how well off we are.

Me too. I think the competitiveness in prices for pretty much everything which can be accessed on the internet - if you are a motivated value chaser - is a plus. And the fact that wages have been generally on the rise and index-linked pensions have helped. Looking around on MSE for value in investing your savings does no harm either!

PeacefulWaters

Ballard wrote: »

I don't agree at all. We are talking about a scenario of high inflation. This may or may not come to fruition but if it did then it would hit those who barely manage to support themselves now. It's the people on pre-pay electricity meters and value baked beans who would really feel the pinch.

Index linked benefits.

And we are yet to assess how bad the inflation time bomb is.

Thrugelmir

Ballard wrote: »

I don't agree at all. We are talking about a scenario of high inflation. This may or may not come to fruition but if it did then it would hit those who barely manage to support themselves now. It's the people on pre-pay electricity meters and value baked beans who would really feel the pinch.

Going to hit the highly indebted. As incomes will be squeezed. Rising interest rates being the final nail.

Value baked beans are UK produced so won't be hit by imported inflation.

CLAPTON

Thrugelmir wrote: »

Going to hit the highly indebted. As incomes will be squeezed. Rising interest rates being the final nail.

Value baked beans are UK produced so won't be hit by imported inflation.

I'm not sure that our haricot beans are all grown in the UK

Joe_Bloggs

Apparently they can grow the beans in Canada. These beans seem to be fussy about the soil in the UK.
http://www2.warwick.ac.uk/newsandevents/pressreleases/scientists_on_a/
We will genetically alter them to like the UK or else.
J_B.
We could try growing them in plant pots with a southern aspect.

System

I'm not sure what point you are attempting to make with the USD rate.

I know it's been over $2 as I got it at that time.
The rate hovered around $1.50/1.60 mark - with anything above a bonus.

The US used to be cheaper than the UK, but in recent years but I find the USD shelf price + sales tax isn't massively different than the UK cost (VAT inclusive). A $1.20 rate will only exacerbate this.

Companies I've worked for either traded within Scotland/UK, or with other countries tended to bill in their local currency (EUR/USD), so the exchange rate never affected their product prices.

jumperabv3 wrote: »

Everyone can be concerned by what's affecting him/her the most, so for you USD could be a concern, for me ILS and THB are bigger concerns...

And if the GBP/USD does concern you - how do you feel about seeing the GBP worth $2.00 about 8 years ago and now it's worth 40% less?

jumperabv3

Heng_Leng wrote: »

I'm not sure what point you are attempting to make with the USD rate.

I know it's been over $2 as I got it at that time.
The rate hovered around $1.50/1.60 mark - with anything above a bonus.

Anything above is a bonus - says who?

lstar337

Ballard wrote: »

In the grand scheme of things, though, I'll survive. I'm of the opinion that if I can afford a holiday then I've got little to worry about.

I commend your attitude. As somebody that can rarely afford a holiday, it is nice to hear that from somebody who can.

jumperabv3

lstar337 wrote: »

I commend your attitude. As somebody that can rarely afford a holiday, it is nice to hear that from somebody who can.

The prices in other countries are not going down so when you travel with pounds you will find spending lots more in order to afford vacation, overseas investments, and basically anything that has to do with the word 'overseas' has just turned to be super expensive for the average and for the non-average Joe from UK.

bigadaj

jumperabv3 wrote: »

The prices in other countries are not going down so when you travel with pounds you will find spending lots more in order to afford vacation, overseas investments, and basically anything that has to do with the word 'overseas' has just turned to be super expensive for the average and for the non-average Joe from UK.

So don't vacation overseas if you don't want to pay more.

Similarly if you consider yourself to be primarily located in another country and your personal income has dropped in a non sterling currency then you need to consider what impact that personal pay cut has on you. It may be that the uk is less attractive to the extent that you might want to base yourself elsewhere, presuming that your preferred location will accept you with the skills or resources you have, and there is sufficient work etc.