Could we see a Sterling crisis?

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Sorry to the OP, no more distracting comments from me, sorry.

Albermarle

masonic said:

mlc2009 said:

Could we see parity with the dollar?

There's a wide range of possible outcomes depending on how the situation develops, but it's not something that can be ruled out. Recent drives to increase government spending at the same time as promising tax cuts won't be helpful to the situation. Selling £150bn in gilts to fund the energy package, if that's what they intend to do, is going to have a devaluing effect.

Maybe will not be long before we will need the IMF to bail us out again like in the 1970's...

John464

Thumbs_Up said:

 Despite The New York Times daily diatribe against the monarchy the Americans always seem to be interested in our royal family

The greatest celebration in the American calendar is the anniversary of the day America got rid of them.  So maybe it cheers them up to see what they no longer have to put up with?
As a famous American (I forget who) said 'The thing we like most about your Royal Family is they are yours and not ours'

Type_45

John464 said:

Thumbs_Up said:

 Despite The New York Times daily diatribe against the monarchy the Americans always seem to be interested in our royal family

The greatest celebration in the American calendar is the anniversary of the day America got rid of them.  So maybe it cheers them up to see what they no longer have to put up with?
As a famous American (I forget who) said 'The thing we like most about your Royal Family is they are yours and not ours'

Americans remember the War of Independence in that way today.  But at the time it was a civil war.  Similar to Brexit it had pretty even numbers who were very much for and against staying with the UK.  Over the centuries that narrative has changed to what it is today.

MA260

Important to note that gas prices have fallen significantly since the price cap announced after measures taken by the EU and UK in the markets.  So the energy package may be no where near the 150 Billion projected.
Falling gas price set to slash PM Liz Truss bailout bill | Daily Mail Online

Millyonare

The GBP sterling index -- against a basket of major global currencies -- has already fallen by half in the past 40 years. The pound has been in crisis for decades (since at least WW1). It is nothing new. Our trade balance is horrific, domestic productivity is among the worst in the developed world, and major overseas investments (particularly in the US) frequently turn sour.

masonic

MA260 said:

Important to note that gas prices have fallen significantly since the price cap announced after measures taken by the EU and UK in the markets.  So the energy package may be no where near the 150 Billion projected.

It's a bit of a mixed picture really, the season ahead pricing has fallen back to where it was at the start of August, while the day ahead auction price is already moving back up to the previous high. There's a question as to how much energy companies will be hedging, since the government has now stepped in to protect their profits. The detail of the plan will be very interesting. But you are right that estimating the cost at this point is nothing more than guesswork.

steampowered

Sterling is already at its lowest value against the dollar in 37 years. 

If you voted for Brexit, you really do not get to complain about this. 

wmb194

steampowered said:

Sterling is already at its lowest value against the dollar in 37 years. 

If you voted for Brexit, you really do not get to complain about this. 

For a little balance, let's not forget that other currencies are also at multi-decade lows vs the US dollar, for instance the euro, at the lowest it's been in two decades. There is a general story of great dollar strength. Predicting forex rates is famously difficult but a few analysts have begun to question whether the dollar has come too far.

Thumbs_Up

steampowered said:

Sterling is already at its lowest value against the dollar in 37 years. 

If you voted for Brexit, you really do not get to complain about this. 

Please explain what the relevance is with your comment about Brexit? The Pound and Euro have been poor against the dollar for many years!