O/T pound

[WanChaiMiller]

And we need no reminding the pound is one of the worlds worst performing currencies since the EU referendum.

[gm_gm]

And we need no reminding the pound is one of the worlds worst performing currencies since the EU referendum.

Strange comment...explain how, and what affect

[John2]

Strange comment...explain how, and what affect

Before the referendum 1 Euro cost £1.31, it now costs £1.13.

Against the Euro, for every £10 we used to have, we now have £8.63.

For every £10 we used to spend on imports, we now have to spend £11.59.

This means imports are much more expensive. It means exports are cheaper. Cheap exports is good if you are a manufacturing economy, but we aren't any more and never will be again, the world has changed too much.

As a direct consequence we are seeing growing inflation. In the 12 months following Brexit only the Turkish lira performed worse than the pound of the world's widely traded currencies.

Goods are becoming more expensive, most noticeably foreign holidays, and the standard of living is falling.

The positive news is that this isn't really a problem of the pound. All fiat (government issued) currencies suffer the same problems, governments struggle to master their economic levers and keep things stable with inflation in check, we get these boom and bust cycles. In ******* the world has an alternative now, and quite concievably in the next 20 years all the worlds major currencies will fade to insignificance or even collapse completely, going the way of the film camera and fax machine.

[Pattylallacks2]

Excellent summary John 2. Unfortunately logic and facts won't influence our Little Englanders.

[Slimchance]

Before the referendum 1 Euro cost £1.31, it now costs £1.13.

Against the Euro, for every £10 we used to have, we now have £8.63.

For every £10 we used to spend on imports, we now have to spend £11.59.

This means imports are much more expensive. It means exports are cheaper. Cheap exports is good if you are a manufacturing economy, but we aren't any more and never will be again, the world has changed too much.

As a direct consequence we are seeing growing inflation. In the 12 months following Brexit only the Turkish lira performed worse than the pound of the world's widely traded currencies.

Goods are becoming more expensive, most noticeably foreign holidays, and the standard of living is falling.

The positive news is that this isn't really a problem of the pound. All fiat (government issued) currencies suffer the same problems, governments struggle to master their economic levers and keep things stable with inflation in check, we get these boom and bust cycles. In ******* the world has an alternative now, and quite concievably in the next 20 years all the worlds major currencies will fade to insignificance or even collapse completely, going the way of the film camera and fax machine.

A couple of points which may or may not be wholly correct

1. At the time of the Brexit vote I believe the pound had risen on the expectation of a yes vote and some of the drop was due to the "shock" of the no vote, with some due to the pound being over valued and awaiting readjustment anyway.

2. It will help our growth industry, financial services in all their many guises, which should be assisted by a lower pound.

3. And before the SJWs stick their oar in, its all a Tory conspiracy.

[John2]

1. At the time of the Brexit vote I believe the pound had risen on the expectation of a yes vote and some of the drop was due to the "shock" of the no vote, with some due to the pound being over valued and awaiting readjustment anyway.

Sorry I missed this... you do realise that this makes the case even further that Brexit caused the pound to lose its value, the implication being it would be higher without the uncertainty of the referendum and the then unimaginable prospect of leaving.

[great_fire]

Before the referendum 1 Euro cost £1.31, it now costs £1.13.

Against the Euro, for every £10 we used to have, we now have £8.63.

For every £10 we used to spend on imports, we now have to spend £11.59.

This means imports are much more expensive. It means exports are cheaper. Cheap exports is good if you are a manufacturing economy, but we aren't any more and never will be again, the world has changed too much.

As a direct consequence we are seeing growing inflation. In the 12 months following Brexit only the Turkish lira performed worse than the pound of the world's widely traded currencies.

Goods are becoming more expensive, most noticeably foreign holidays, and the standard of living is falling.

The positive news is that this isn't really a problem of the pound. All fiat (government issued) currencies suffer the same problems, governments struggle to master their economic levers and keep things stable with inflation in check, we get these boom and bust cycles. In ******* the world has an alternative now, and quite concievably in the next 20 years all the worlds major currencies will fade to insignificance or even collapse completely, going the way of the film camera and fax machine.

You seem to have completely forgotten about the increase in foreign tourism due to the lower pound.

[fivetide]

You seem to have completely forgotten about the increase in foreign tourism due to the lower pound.

And still pushing this same lefty agenda that we don't make anything anymore when we are the 9th biggest manufacturing nation, even ahead of those Ruskies.

Other than that, the sentiment is right.

https://www.themanufacturer.com/uk-m...ng-statistics/

[John2]

And still pushing this same lefty agenda that we don't make anything anymore when we are the 9th biggest manufacturing nation, even ahead of those Ruskies.

Other than that, the sentiment is right.

https://www.themanufacturer.com/uk-m...ng-statistics/

I've not suggested we don't manufacture, just that we aren't a manufacturing economy in the way we used to be and never will be again.

9th in the world sounds great, but it's not a helpful statistic in measuring the role of manufacturing within our economy.

In 1948, manufacturing was 41% of our economy. By 2013 it had fallen to 14%.

In the same time services have gone from 46% to 79% of our economy. Simply put we are a service economy, not a manufacturing one.

Foreign tourism is great, numbers are forcast up almost 6% in 2017, however we have been achieving good growth in this area for a long time and this figure is pretty much the same growth we achieved in 2014. A weak pound no doubt helps, and spending is up even further, but it isn't changing much in the bigger picture that so many Brexit supporters are missing.

https://www.theguardian.com/business...to-know-ons-g7
https://www.visitbritain.org/forecast