Maddog21 Posted September 21, 2009 Share Posted September 21, 2009 http://news.bbc.co.uk/1/hi/business/8266266.stm Pound plumbs five-month euro low The pound was last at such euro lows back in April The pound has fallen to its lowest level since April against the euro amid a warning that UK public debt levels may not be sustainable. The Bank of England cautioned that foreign investors may not be as willing to purchase UK assets, thus hurting the pound's long-term exchange rate. The pound fell as low as 1.1016 euros, a five-month low, and fell to $1.6134 against the dollar. However, sterling is still stronger than it was at the start of the year. In its quarterly bulletin, the Bank of England noted that the UK had run current account deficits for more than a decade - sustainable as long as the deficit was offset by foreign investors' purchases of UK financial assets. "But the financial crisis may have led overseas investors to reassess their willingness or ability to purchase sterling assets and thereby finance the UK trade deficit," the Bank of England said. "As a result, the long-run sustainable real sterling exchange rate... may have fallen." On Friday, official figures showed UK's public sector net borrowing totalled £16.1bn last month. This was the highest figure on record for August. The government's overall debt now stands at £804.8bn, or 57.5% of GDP, an increase of £172bn in the past year. Quote Link to comment Share on other sites More sharing options...
piece of paper Posted September 21, 2009 Share Posted September 21, 2009 http://news.bbc.co.uk/1/hi/business/8266266.stmPound plumbs five-month euro low The pound was last at such euro lows back in April The pound has fallen to its lowest level since April against the euro amid a warning that UK public debt levels may not be sustainable. The Bank of England cautioned that foreign investors may not be as willing to purchase UK assets, thus hurting the pound's long-term exchange rate. The pound fell as low as 1.1016 euros, a five-month low, and fell to $1.6134 against the dollar. However, sterling is still stronger than it was at the start of the year. In its quarterly bulletin, the Bank of England noted that the UK had run current account deficits for more than a decade - sustainable as long as the deficit was offset by foreign investors' purchases of UK financial assets. "But the financial crisis may have led overseas investors to reassess their willingness or ability to purchase sterling assets and thereby finance the UK trade deficit," the Bank of England said. "As a result, the long-run sustainable real sterling exchange rate... may have fallen." On Friday, official figures showed UK's public sector net borrowing totalled £16.1bn last month. This was the highest figure on record for August. The government's overall debt now stands at £804.8bn, or 57.5% of GDP, an increase of £172bn in the past year. A dash of good old capital flight to add to the recipe. p-o-p Quote Link to comment Share on other sites More sharing options...
OnlyMe Posted September 21, 2009 Share Posted September 21, 2009 "But the financial crisis may have led overseas investors to reassess their willingness or ability to purchase sterling assets and thereby finance the UK trade deficit," the Bank of England said. So, the trade deficit, if you consider trade as being trade in goods and not asset speculation is actually WORSE than has been reported. No surprise there, it was quite obvious what what happening to the productive economy - it was being killed by monetary policy and asset inflation took over and undermined profitability. Quote Link to comment Share on other sites More sharing options...
dr ray Posted September 21, 2009 Share Posted September 21, 2009 If the IMF are called upon for a loan at some point, do you think they will tell the government to cancel the Olympics? They certainly won't be giving out any gold. They will probably just hand out certificates like they do at the bank. Quote Link to comment Share on other sites More sharing options...
THE BALD MAN Posted September 21, 2009 Share Posted September 21, 2009 http://news.bbc.co.uk/1/hi/business/8266266.stmPound plumbs five-month euro low The pound was last at such euro lows back in April The pound has fallen to its lowest level since April against the euro amid a warning that UK public debt levels may not be sustainable. The Bank of England cautioned that foreign investors may not be as willing to purchase UK assets, thus hurting the pound's long-term exchange rate. The pound fell as low as 1.1016 euros, a five-month low, and fell to $1.6134 against the dollar. However, sterling is still stronger than it was at the start of the year. In its quarterly bulletin, the Bank of England noted that the UK had run current account deficits for more than a decade - sustainable as long as the deficit was offset by foreign investors' purchases of UK financial assets. "But the financial crisis may have led overseas investors to reassess their willingness or ability to purchase sterling assets and thereby finance the UK trade deficit," the Bank of England said. "As a result, the long-run sustainable real sterling exchange rate... may have fallen." On Friday, official figures showed UK's public sector net borrowing totalled £16.1bn last month. This was the highest figure on record for August. The government's overall debt now stands at £804.8bn, or 57.5% of GDP, an increase of £172bn in the past year. The Labour parties scorched earth policies are working.... Quote Link to comment Share on other sites More sharing options...
Maddog21 Posted September 21, 2009 Author Share Posted September 21, 2009 The Labour parties scorched earth policies are working.... Yep, I think they wanted to prop it up until the election then blame the Tories blah blah Next leg down coming soon Quote Link to comment Share on other sites More sharing options...
Laura Posted September 21, 2009 Share Posted September 21, 2009 However, sterling is still stronger than it was at the start of the year. Exactly. A Euro was 0.98p back then & the UK winter escapees were whinging they were getting less than parity. So why the fuss now? Just nonsense to fill the papers....... ........ until it wont stop sinking. House prices will just have to rise to compensate Quote Link to comment Share on other sites More sharing options...
nohpc Posted September 21, 2009 Share Posted September 21, 2009 Going to Barcelona today for a city break. Best deal I could get for 500 pounds was 540 euros. After travelling to New York at 2 dollars to the pound and Iceland at 220 kronar to the pound the shoe is now on the other foot. Doubt I will be buying much apart from food and drink. Even went through quidco for travelex at the airport so I cold get 3.50 pounds cashback!! Quote Link to comment Share on other sites More sharing options...
rustyfunk Posted September 21, 2009 Share Posted September 21, 2009 Going to Barcelona today for a city break. Best deal I could get for 500 pounds was 540 euros. After travelling to New York at 2 dollars to the pound and Iceland at 220 kronar to the pound the shoe is now on the other foot. Doubt I will be buying much apart from food and drink. Even went through quidco for travelex at the airport so I cold get 3.50 pounds cashback!! off topic, but if you are there next saturday, make sure you see the correfoc part of the Le Merce celebrations (which start on Thursday) its quite a spectacle Quote Link to comment Share on other sites More sharing options...
nohpc Posted September 21, 2009 Share Posted September 21, 2009 If the IMF are called upon for a loan at some point, do you think they will tell the government to cancel the Olympics? Why would you need to cancel it? I don't see any reason why you can't have an olympics on school sports grounds already in existence with no opening/closing cermonies etc.? An austerity games would be nice. Quote Link to comment Share on other sites More sharing options...
nohpc Posted September 21, 2009 Share Posted September 21, 2009 off topic, but if you are there next saturday, make sure you see the correfoc part of the Le Merce celebrations (which start on Thursday) its quite a spectacle I will be there thursday/friday (leaving at 8pm). thanks for the heads up. Quote Link to comment Share on other sites More sharing options...
Zzzzzzzzzzzzzzzzzzzzzzzzzz Posted September 21, 2009 Share Posted September 21, 2009 This is scary stuff Quote Link to comment Share on other sites More sharing options...
bogbrush Posted September 21, 2009 Share Posted September 21, 2009 http://news.bbc.co.uk/1/hi/business/8266266.stmPound plumbs five-month euro low The pound was last at such euro lows back in April The pound has fallen to its lowest level since April against the euro amid a warning that UK public debt levels may not be sustainable. The Bank of England cautioned that foreign investors may not be as willing to purchase UK assets, thus hurting the pound's long-term exchange rate. The pound fell as low as 1.1016 euros, a five-month low, and fell to $1.6134 against the dollar. However, sterling is still stronger than it was at the start of the year. In its quarterly bulletin, the Bank of England noted that the UK had run current account deficits for more than a decade - sustainable as long as the deficit was offset by foreign investors' purchases of UK financial assets. "But the financial crisis may have led overseas investors to reassess their willingness or ability to purchase sterling assets and thereby finance the UK trade deficit," the Bank of England said. "As a result, the long-run sustainable real sterling exchange rate... may have fallen." On Friday, official figures showed UK's public sector net borrowing totalled £16.1bn last month. This was the highest figure on record for August. The government's overall debt now stands at £804.8bn, or 57.5% of GDP, an increase of £172bn in the past year. I have spent the last 10 years trying to explain to people that running an abysmal trade deficit, financed by "inward capital flows " (selling the place) was absurd. I am just f*cking sick of the irresponsible way this country has been run. It didn't start with NuLab but they certainly have turned it into an art form. Quote Link to comment Share on other sites More sharing options...
RB's love cub Posted September 21, 2009 Share Posted September 21, 2009 I think the SHTF moment is when the pound drops below the euro, then interest rates will have to rise, might be soon Quote Link to comment Share on other sites More sharing options...
drrayjo Posted September 21, 2009 Share Posted September 21, 2009 I think the SHTF moment is when the pound drops below the euro, then interest rates will have to rise, might be soon Who's your mummy? Merryn Somerset Webb? Meredith Whitney? Quote Link to comment Share on other sites More sharing options...
Bugg Posted September 21, 2009 Share Posted September 21, 2009 1 AUD is now worth over 53p. I can't remember the pound ever being this weak compared to the Aussie. Quote Link to comment Share on other sites More sharing options...
piece of paper Posted September 21, 2009 Share Posted September 21, 2009 I have spent the last 10 years trying to explain to people that running an abysmal trade deficit, financed by "inward capital flows " (selling the place) was absurd.I am just f*cking sick of the irresponsible way this country has been run. It didn't start with NuLab but they certainly have turned it into an art form. Are you saying that you have some ethical standard that means that you wouldn't sell your wife and family into slavery so that could have a new flat screen? p-o-p Quote Link to comment Share on other sites More sharing options...
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