Is the Pound Sterling finished?

Discussion in 'Economics' started by Le_addeur_noir, Nov 12, 2008.

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  1. Having just read on BBC that the Pound is now at a record low of less than 1.2 Euro and hovering just above $1.50,will one Pound be worth less than both the US Dollar and the Euro by the end of the year?.

    With the British manufacturing base having been destroyed by sucessive governments,this will boost inflation,assuming anyone in Britain can still afford to purchase anything.

    In the last 2 months,Sterling has lost around 20% of it's value against the Greenback.

    Isn't Labour just great?.

    Update-Whilst typing this ,Sterling has fallen further.It's now under $1.50.
     
  2. in_the_cheapseats

    in_the_cheapseats LE Moderator

    'Course it isn't finished. Remember (unlike Liabours beliefs) the economy goes in cycles - at the moment we are getting to the bottom of a doozy of a ride downwards with the currency affected too.

    Might take a while but the pound will be back - first against the $. The euro may take a little longer. Both time periods I measure in years........
     
  3. With the interest rate cuts that we are going to get next year, it will probably drop even further.
     
  4. in_the_cheapseats

    in_the_cheapseats LE Moderator

    Agree
     
  5. No Labour (socialist) Govt is complete without a run on the pound. I predicted it a few months ago and sure enough international confidence in the british economy is holed below the waterline. You can chart the downfall of the pound to the day and it all staerted with Northern Rock. The Govt, Bank of Englad and FSA completely failed to deal with the issue in a timely and assertive way. As a consequence, money poured out of UK PLC.

    What amazes me is Gordon Brown's increased popularity during the credit crunch. It really will be hugely entertaining if Labour win the next election.

    Pound?Euro?Dollar parity? Anything can happen in a banana republic.

    Hey we had stupidly high interest rates just a few days ago. The idiots really are in charge of the ship......
     
  6. My Building society has just dropped my mortgage payments and has told me it will pass on (next month) the full 1.5% cut that the bank of England announced last week.

    Can't help thinking I'm going to need the extra dosh I'm saving just to buy the essentials.
     
  7. Wish my landlord would pass his savings on to me!
     
  8. I don't have the confidence to start depositing dough in Euros, or anything else. Speculating on currencies is a quick way to lose a lot of money. It looks like sterling is going down the pan, but who knows?
     
  9. GB is only popular because people see him as part of the good times - he wont let me loose my job will he?

    As soon as the crunch really starts to bite and people start loosing their jobs, GB will start rapidly heading under.
     
  10. Biped

    Biped LE Book Reviewer

    Latest news from the gobment is that due to the fall in the pound, the best thing for the British economy, and in order to protect our money, we are signing up to the Euro banknotes . . . .

    only kidding, but it's one hell of a sick joke huh?
     
  11. 1. In times of trouble investors move their money into the big reserve currencies. i.e. the Dollar and Euro.

    2. Sterling was always artificially high, because it was a petro-currency. Now NS oil is running out there needs to be an adjustment.

    3. Interest Rates

    4. Whatever you guys think on here, we should learn one big lesson from recent events. The UK relies heavily on the finance industry to drive GDP. Small UK has therefore had to cough up a disproportional amount to bail the financial market out. When banks and financial companies reach a scale that they almost threaten national bankruptcy the lesson is you are either BIG or you are Iceland. As international companies become larger and larger, they will even test the financial resilience of the UK. The UK’s future has to be in Europe or we will be bankrupted and eaten alive.
     
  12. With another 36,500 being added to the claimant count today in this month's unemployment figures,the next month's figures are more likely than not to show over 1 million on the dole by Christmas.

    Add to that the number of Polish and other European workers who are quitting Britain now that Sterling is going down the drain,and you have a scenario where up to 50,000 jobs per month are being lost every month in Britain.This figure is sure to accelerate over the next year.
     
  13. But surely as the Polish and European workers leave in their droves due to a poor sterling they will free up jobs for those being put on the dole?
     
  14. Since when has the euro been a big reserve currency? Expect dollar/euro rates down to .9 or even lower. Convertsterling back to francs at these levels and you get just under 8 francs to the pound, not far off historical average. Enough to suggest sterling could go even lower in the coming months.

    Just remember all you expats who thought you had escaped a socialist govt in the UK. No siree, if you are collecting a pension in sterling but living in Spain/France elsewhere, you are doubly screwed. At least the BoE could slash rates when it realised the stupidity of its policies last week. On the same day the European Central Bank dropped rates by 1/2 %. The BoE finally acted decisively, and it acted for Britain. It would not have been able to do that if we had been in the eurozone.

    We should recover from this, but the debt laden consumer and economy is not something that will be resolved as easily.

    Spare me the euro/soviet socialist republic.....
     
  15. No,it only lowers the number signing on.

    The number of vacancies (and the total number of people in employment)is also declining.

    I don't know how many foreign workers are returning to their home countries on a monthly basis,but whatever the number is is masking the rising number of people on the dole.

    Another fact to be taken into account is that foreign workers can claim Jobseeker's Allowance(JSA) once they leave the UK.I don't know whether the claimant count includes these people.

    The plain fact is unemployment is on the way up.
     
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