Saturday, Oct 06, 2007
Safer than Gold??
Moneyfacts: Offshore Savings - Euro Accounts
Exchange now at £1 to €1.44 then wait until the pound and the Euro reach 1 to 1 parity.
Remember Germany is the powerhouse of the Euro.
It doesn't suffer from high house prices and 43%of people rent so it doesn't have anything resembling the personal debt UK has!
Germany has a world class manufacturing industry and is almost surrounded by a cheap pool of labour in the former eastern block. In fact its only a short drive across the border or better still they'll move there world class industry to them like Skoda.Germany has the largest economy in Europe and the third largest economy in the world, behind the United States and JapanGermany is the world's top exporter with $1.133 trillion exported, from the beginning of 2006 (Germany's exports to other Eurozone countries are included in thi
2 Comments
- If you do not have an admin password leave the password field blank.
- If you would like to request a password allowing you to add comments and blog news articles without needing each one approved manually, send an e-mail to the webmaster.
- Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
- Please note that any viewpoints published here as comments are user's views and not the views of HousePriceCrash.co.uk.
- Please adhere to the Guidelines
1. planning4acrash said...
The UK has a greater income per capita than Germany, second only to the US on that measure. Germany are only a bigger economy as a whole because they have 20million more people, and they have systemic unemployment, I know lots of well qualified Germans working in London because they can't get a job at home. Their manufacturing is not growing fast and will suffer dearly from a high Euro and they consume about 3X the quantity of fossil fuels to feed their manufacturing, their high cost base and need for natural gas, coal and oil will put significant downward pressure in the short and long term, our services are growing and tend to be high value added with a high exchange rate not effecting them so much and we are in manufacturing heavily, about 20% of our economy is solid high value added manufacturing, whilst, unlike Germany, we are more liberal, so the low value added stuff that German companies were forced to hold onto we could outsource and keep ownership of, increasing yields for UK Plc.
Yes, we are vulnerable to debt, that is my greatest concern but my only concern other than dipping north sea oil. I won't be shifting from £'s to Euro's any time soon, not unless I see a drop in interest rates from the BOE (i'll have my finger on the button midday on rate setting day tho), coz I still think we'll see 6% interest rates by January and 6.25% before Easter. The economy is powering ahead and so is inflation. I reckon that rates will peak above 7% to protect the £ and reduce strong pipeline inflation now that unions have got used to the idea that RPI at 4.8% is ripping off the workers. Expect more industrial action and wage led inflation over the next two years as RPI and CPI continue to diverge. My employer just upped its pay offer this year from 2% to 2.5%, but unions won't be satisfied with that if next year if RPI creeps up beyond 5%, regardless of where CPI is.
2. planning4acrash said...
The UK has a greater income per capita than Germany, second only to the US on that measure. Germany are only a bigger economy as a whole because they have 20million more people, and they have systemic unemployment, I know lots of well qualified Germans working in London because they can't get a job at home. Their manufacturing is not growing fast and will suffer dearly from a high Euro and they consume about 3X the quantity of fossil fuels to feed their manufacturing, their high cost base and need for natural gas, coal and oil will put significant downward pressure in the short and long term, our services are growing and tend to be high value added with a high exchange rate not effecting them so much and we are in manufacturing heavily, about 20% of our economy is solid high value added manufacturing, whilst, unlike Germany, we are more liberal, so the low value added stuff that German companies were forced to hold onto we could outsource and keep ownership of, increasing yields for UK Plc.
Yes, we are vulnerable to debt, that is my greatest concern but my only concern other than dipping north sea oil. I won't be shifting from £'s to Euro's any time soon, not unless I see a drop in interest rates from the BOE (i'll have my finger on the button midday on rate setting day tho), coz I still think we'll see 6% interest rates by January and 6.25% before Easter. The economy is powering ahead and so is inflation. I reckon that rates will peak above 7% to protect the £ and reduce strong pipeline inflation now that unions have got used to the idea that RPI at 4.8% is ripping off the workers. Expect more industrial action and wage led inflation over the next two years as RPI and CPI continue to diverge. My employer just upped its pay offer this year from 2% to 2.5%, but unions won't be satisfied with that if next year if RPI creeps up beyond 5%, regardless of where CPI is.