My God!,the Pound rises

#1
The Pound rised above $1.50 for the first time in ages and is up against the Euro as well!

Have Brown and Darling been assinated?........IF ONLY!

On a more serious note,is Britain past the worst of the recession and is the Eurozone is just about to get hit?.
 
#3
in_the_cheapseats said:
Long way to go before we are back to even close to what was. Expect more job cuts and a degree of frugality for a couple of years yet.
If it goes back to what it was we will then have the problem we had before ref exports/imports.

Maybe now it is about right?
 
#4
Le_addeur_noir said:
The Pound rised above $1.50 for the first time in ages and is up against the Euro as well!

Have Brown and Darling been assinated?........IF ONLY!

On a more serious note,is Britain past the worst of the recession and is the Eurozone is just about to get hit?.
I skied France in March and was shocked at how expensive things were. It occurred to me then that the Euro was over-valued. I haven't seen anything to change my mind and have considered shorting the Euro but I didn't want to upset Brussels.... :D

Litotes
 
#5
About time, BUT, nothing whatever to do with the 'swamper'.

The 'Stalinist' will claim the praise though.

The Eurine is so overvalued that the European Soviet Union is in danger of imploding. Oh! how I wish!
 
#6
Not really, the dollar fell.

Lot of tightening of sphincters pending the results of "stress tests" on US banks due later this week
 

chimera

LE
Moderator
#7
Classic bit of Govt spin all over the papers today telling us that the pound has "soared" to 1.13 euros, and that we are on the way to recovery.

Those with memories longer than a week may recall that after it slumped to almost parity last December, (a weak currency is a sign of a weak economy which is a sign of a weak Government - G Brown 1992) it was back to 1.13 by early Feb, and was at 1.13 as long ago as the 26th of April!
 
#8
Living in Europe, it is expensive now - and yes, I do think things are overvalued on the continent. Thankfully, get compensated via LOA, but really feel for those who have retired on the continent with their pensions who now find it really hard to get by.

Still, keep the pound lowish, start earning some export cash and maybe we stand a chance of recovering from this mess.
 
#9
Whilst the rise in the pound is welcome if we want to travel abroad for holidays, it will be less welcome if it shuts down the tourist invasion that is underway at the moment. Have you seen the number of Cloggy and Frog cars on the roads across the south? I visited London a few weeks ago and it was full of tourists, primarily Japanese and French. Not very good for me as I battled through the crowds but good for the hotels and bars - and they employ lots of people!

Did you also see the news today that Tesco is cutting its prices in Eire by some 25% in order to try and reverse the stampede of customers across the border to the much cheaper North?

We live in interesting times!

Litotes
 
#10
I have been in Bavaria for the last 2 weeks, and there is loads of chat amongst the locals that Germany is planning to split from the Euro. This apparently started when a state government (Landrat) member, who lives locally, was on the lash at the Stammtisch and let it slip. Whether this will be on their own, or with others worried about the PII(I)GS, is not clear, but it would certainly be a popular move in a country which still mourns the loss of sovereignty they suffered when they gave up the Deutschmark.

You read it here first!
 
#11
Historically the pound has always been around the $1.50 mark, it's just that everyone remembers the $2.10/£ from a couple of years ago and thinks that should be what it sits at all the time.

In reality that was because the dollar was weak, i think between $1.60-$1.70 should be about right for the current climate, so there's still a little bit of rising to occur before the currencies settle.

As for the Euro, well that's just a weird one that will take some working out.
 
#12
Long, long way to go Guys and Gels..... We have to wait until McGollum-Broone and Pals have all faroucked ofski before we can even start to celebrate with a knees -up.... Way to go yest..... unless McBroone has a real howling temper tantrum in the House and starts throwing things around at the Boy Dave accross the Despatch Box... Oh yes, indeedy...that would be a nice one to see..

Then the Men in White Coats will come and strap Cyclops down on a gurney and take away to a Happy Farm somewhere in deepest .... welll where ever... :p
 
#13
I think its now about the right level. It was always at this level until the recent meteoric rise of the GPB in comparison to the USD. I remember it dipping a few years back to the point that papers started talking about the worst exchange rate ever (less than 1.3 I think) and discussions about moving to the euro.

I think we should be happy that we are at this level. It still makes the USA f*cking cheap and any further rises could be bad for the economy.
 
#14
greenbaggyskin said:
I have been in Bavaria for the last 2 weeks, and there is loads of chat amongst the locals that Germany is planning to split from the Euro. This apparently started when a state government (Landrat) member, who lives locally, was on the lash at the Stammtisch and let it slip. Whether this will be on their own, or with others worried about the PII(I)GS, is not clear, but it would certainly be a popular move in a country which still mourns the loss of sovereignty they suffered when they gave up the Deutschmark.

You read it here first!
Well I let it slip to a Falklands Journo that FI was getting Nuclear Weapons installed against the Argies, few years ago, and that Information got me and a mate pissed all night. :twisted:

...the thing about getting pissed.. :(

...the lie gets wilder and unravels.... :twisted:

..after a few pints, she then buggered off and shagged someone else :evil:
 
#15
Fair enough and I can't see how they could afford it anyway. Changing to the Euro cost an absolute fortune and changing again would be more expensive. Added to that the almost impossible extrication from the central bank and all the chicanery that incurs.

On the other hand the public would love it and it would generate a stash of income for the people involved in making the money, changing office and POS equipment, vending machine manufacturers and of course would disentangle the German economy from the drag effect of the very weak Euro partners.

On balance my view is that it is unlikely, but on my EPC(A) course in 1989 we all agreed that a united Germany was just a pipe dream harboured by an idealist Helmut Kohl (Oops!).
 
#16
greenbaggyskin said:
Fair enough and I can't see how they could afford it anyway. Changing to the Euro cost an absolute fortune and changing again would be more expensive. Added to that the almost impossible extrication from the central bank and all the chicanery that incurs.

On the other hand the public would love it and it would generate a stash of income for the people involved in making the money, changing office and POS equipment, vending machine manufacturers and of course would disentangle the German economy from the drag effect of the very weak Euro partners.

On balance my view is that it is unlikely, but on my EPC(A) course in 1989 we all agreed that a united Germany was just a pipe dream harboured by an idealist Helmut Kohl (Oops!).
On the other hand, Germany could just sit still and wait for the weaker Euro members to go to the wall and drop out. The Euro would then become Germany's currency.

Litotes
 
#18
As someone who Basically lives off his UK Forces pension plus lifetime savings and Investments I am always interested in the Value of The Pound Sterling.
Two years ago I could get 73 Baht for One Pound a week ago 50 if I was lucky now 52, I am assured by Brits out here.
Twice in my adult life I have watched Labour shaft UK's economy and this time they have done it rather well.
The Fabian Society must be working hard on an award for Gorden Brown.

Try this artical from last week

http://www.telegraph.co.uk/finance/...okes---were-galloping-into-a-mega-crisis.html


Very long article worth reading.

A couple of quotes

“As millions of consumers are discovering, there are phases in the build-up of unaffordable debt when it is possible to imagine that living way beyond one's means is a legitimate and sustainable option. For a while, doomsters' warnings of disaster are readily ignored. The time bomb is ticking, but without an explosion the dangers can be passed off as undue pessimism.”


“Faced with the horror of expulsion from the Commons – and the prospect of finding a proper job, without a cornucopia of expenses – they demand bribes for the electorate, even though mounting bills will destroy the budgetary independence of future generations. The position of these MPs is nakedly selfish: we'll enjoy the goodies now; someone else can pay later.

As the voice of integrity on Labour's backbenches, Frank Field rightly says: "We're sleepwalking into a mega-crisis. It is irresponsible to leave the public finances in this state until after the next election."



“The Chancellor says that his borrowing will top £700 billion over the next five years. If correct, that would stretch the country's credit rating to breaking point. But, without urgent remedial action, the total will almost certainly be much more, proportionally far exceeding that of any other G8 country. We are on course to spend annually a greater sum on interest payments (£43 billion in 2010-11) than on defence.

Even the Treasury Select Committee, with its Labour majority, has lost faith in the Brown-Darling magic show. The old tricks no longer fool the audience. The MPs say that the Chancellor is "too optimistic". The unpalatable truth is that unless the Prime Minister discovers a thick seam of gold running under Whitehall, we will all be required to work longer and harder and save more.

State spending must be cut – there cannot simply be a slowing of growth – and tax increases reversed. Hitting the so-called rich with a new top rate generates precious little, except a vindictive smile from Harriet Harman. History tells us that higher earners pay more in taxes when rates are low. Even the Treasury expects two thirds of those in the new 50 per cent band to find ways of dodging it. Set against the Chancellor's annual expenditure of £671 billion, the sums involved are tiny, probably less than £1 billion. It is, in effect, an envy tax.

A Cabinet minister once told me that this Government will never get to grips with the pensions crisis because it involves telling people that they must endure pain today for jam tomorrow, precisely the opposite of what Mr Brown and his acolytes regard as the recipe for self-preservation. They will always try to buy time with taxpayers' money. Unfortunately, both are running out.

End quote.

I have said before on this board George Bush bought his second term in Office by keeping Borrowing Cheap and encouraging Banks to lend to folk who could not afford the Loans, for Money does have it's own Price.
Tony Blair used the same trick to buy his second and third elections.

The Pound will fall and it will beyond my time on Earth before it recovers, if ever.
john