Pound up, employment up, output up.
- Thread starter ^woody^
- Start date
Depends on your point of view; a guy on the radio yesterday was happy with the level, as their exports were now cheaper.
So I suppose you're pleased that we're giving up our vote, our seat at the table and our voice in the chamber, but still agreeing to pay the EU for access, and to obey the rules we will cease to participate in framing.
Freedom from setting the rules
But not freedom from obeying them.
Poor old gasbag.
No, there were two of them. There was a second guy (a speculator in Woking) who was happy because he too bet that the dollar would fall.
I reckon there is a third person somewhere......
Please tell my boss.
D
Doggit
They were when it crashed, but now it's back at £1.43 this morning, it's going to make exports more expensive, and imports cheaper. If it stays at this level, then inflation will slow, and so will exports, and all the Brexit euphoria will start to dissipate. This is why the Euro can never work; because countries need their currencies to float in accordance with how their economies are doing.
Let me check that
"The pound sterling can never work, because it is set for the whole of the UK, and different counties, regions, towns and streets need their currencies to float in accordance with how their economies are doing"
Nope.
It's nonsense.
Just like Doggits Euro postulation.
How many people use the US dollar?
Indeed, but imports into the US will be dearer.
It depends what they actually need to export and import.
Strong dollar - good for America.
Strong pound - bad for Britain.
Weak dollar - good for America.
Weak pound - bad for Britain.
Cestlavie University of Pragmatism.
D
Doggit
Oddly enough Woody, EFLs actually right (it's JD that needs the economics lessons) If the pounds strong, it makes exports more expensive, so they slow down, and people get laid off. If the pounds weak, our exports increase, and people get overtime, or more get taken on, but a weak pound means that imports cost more, so inflation increases, so EFLs got it right - just didn't explain what he was getting at, and left you to fill in the blanks. But he was wrong (IMO) when he said that a strong dollar was good for America, as they suffer the same issues that we do.
But now that sterling is increasing against the dollar, that will very likely translate into the Footsie 100 dropping, and the Footsie 250 rising, as the companies in the FT100 get a lot of their dividends from America, and the FT 250 from the UK.
See, isn't economics confusing.
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There is the point with the strong dollar that the US doesn't actually have to import much to keep going, e.g. fuel and raw materials.
D
Doggit
But that's static whether the dollar is weak or strong, and since they've been fracking, they have reduced their oil and gas imports dramatically anyway. The trick with a strong currency, is to be exporting things that people want, regardless of the price.
Because it is paid for in dollars, you mean?
Yes, a further reason why the value of the currency doesn't affect them.
I believe they are now self sufficient.
...and have few imports.
If people stop buying BMWs, Jags and Japanese, they will buy American.
All unlike Britain.
