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Pound Appears To Be In Free-fall Today.

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Looks like the pound is falling against all currencies today.

Is this just old news?

Well Merv seems to think that a weak pound is 'helpful' as it helps with exports. Trouble is though, we import a damned site more than we export so a weak pound means inflated prices. Helpful? I think not!

Edited by redmen9

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Well Merv seems to think that a weak pound is 'helpful' as it helps with exports. Trouble is though, we import a damned site more than we export so a weak pound means inflated prices. Helpful? I think not!

very helpful i think you will find.

'Inflated' prices is exactly what Merv needs along with the indedted nation.

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I'm sure the financial sector wants a strong pound but is it good for the average working person? We sorely need to get back to productive work instead of trying to create credit bubbles.

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I'm sure the financial sector wants a strong pound but is it good for the average working person? We sorely need to get back to productive work instead of trying to create credit bubbles.

You need affordable housing and industrial space for that. In the meantime all the raw materials and manufacturing equipment get more expensive making any chance of a start-up impossible.

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Well Merv seems to think that a weak pound is 'helpful' as it helps with exports. Trouble is though, we import a damned site more than we export so a weak pound means inflated prices. Helpful? I think not!

... unless you believe we need to start re-balancing the economy and living within our means.

I agree that it's not at all helpful to the cause of continued unfunded (except by more debt) consumption.

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Looks like the pound is falling against all currencies today.

Is this just old news?

its all alright if the £ falls and bills rise , as long as property prices don't fall the country will be fine , nobody will have a job or can afford to eat and pay their bills but the country will be o.k, BROWN AND HIS CRONIES ARE IDIOTS, hitler and the whole of germany could not take this country down but a one eyed scottish a***hole can

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How are they going to get the British public to except the Euro without crashing the pound first?

I am staying on the West Coast of Ireland at the mo' , not living here, but its horrible going shopping and doing the maths to stirling can't imagine if we just go from £1 to 1 euro if 1/4 of people in UK already having trouble paying the bills!

Edited by Sybil13

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Well a falling pound will be good for anyone in europe who wants to move to, or return to, the UK (bankrupt Germans perhaps?) but for those of us already trapped here it's further bad news. You have to find ways to hedge against the pound.

Effectively the price of imports (such as food stuffs) will be going up and you can forget about that cheap holiday abroad. My thoughts are that I think we will go the way of Iceland and eventually be forced into the Euro. Rising overall debt, dilution of the currency via QE and rising unemployment combined with high individual debt levels....'there could be trouble ahead'.

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How are they going to get the British public to except the Euro without crashing the pound first?

Dear god.

Look, for the last time.... we aren't going to the euro.

Britain addopting the euro mean NO MORE PRINTY PRINTY for Gordon brown.

It WON'T happen.

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its all alright if the £ falls and bills rise , as long as property prices don't fall the country will be fine , nobody will have a job or can afford to eat and pay their bills but the country will be o.k, BROWN AND HIS CRONIES ARE IDIOTS, hitler and the whole of germany could not take this country down but a one eyed scottish a***hole can

I think the pretty straight sort of guy deserves a lot of the credit for wrecking the country. And he just won't go away:

http://eureferendum.blogspot.com/2009/09/o...has-spoken.html

This is more like it: Tony Blair's Monkey Dust Manifesto

But I suppose the glottal-stopped chancer will end up with a peerage.

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The BOE have admitted that they have been deliberately attempting to devalue to boost exports and rebalance the economy. Not really a surprise with the negative quarterly bulletins, QE, 0.5% rates and all the negative comments Mr King has been making.

Devaluing against the dollar is proving to be rather difficult since the Fed are doing the exact same thing. Every time the pound loses value to the $ it seems to regain it in a few days.

I would imagine the large exporting economies of Germany, Japan etc will not be impressed as they need the US, UK to buy there imported products to help them recover from their own recessions. I have not really been paying attention but I haven’t seen the price of Imported goods such as German cars etc increase by 30% ? Probably would not be too popular in the middle of a recession?

The ECB haven’t joined in the game yet, if the eurozone economy does not pick up as they hope I would not be surprised if they start trying to knock the euro as well.

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The ECB haven’t joined in the game yet, if the eurozone economy does not pick up as they hope I would not be surprised if they start trying to knock the euro as well.

I used to think along those lines a few months back, but now I realize that the ECB powers that be (i.e. Germany <_< ) are not really worried about the strength of the Euro, because it actually makes Germany more competitive vs the other Eurozone countries, PIIGS in particular.

See my thread in the economics subforum on this topic.

I suspect it's going to take a shock (European bank failure/forced rescue or similar) for the market to acknowledge that the Euro is overvalued.

I'm not sure how long it's going to take, but it will happen at some point.

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The BoE have been talking sterling down for all they're worth in the last 3 months. Announcements of more QE, phony hints at negative interest rates, predictions of ZIRP for years, cassandra like growth predictions, and most recently a suggestion that they'll ignore any increases in inflation.

This is because when they suggested QE would stop soon, sterling rose sharply.

In other words, it's all about Mervyn and nothing to do with reality.

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Forex markets are rigged. Central banks of all G7 countries are deciding exchange rates amongst themselves every day. In fact they might be the ones really creaming the profits from Joe idiot every day.

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The UK PM [bROWN] has declined to comment on the decline of the Pound, stating that he never comments on currency movement. He does however believe that some countries FX reserves are not being used in a constructive way, & wants to see insurance schemes to lesson the need for building up FX reserves. Brown also looks ahead to the G20, noting that leaders will institutionalize the G20 as the main economic group. The G20 will not make a statement on China's currency, but Brown says he would like to see the Chinese import more from our countries (i.e the West). He advises us that Baronness VADERA will leave the govt to become the UK's G20 coordinator. On the UK, Brown wants stable local economic growth, & welcomes all the factors stabilizing the economy. Speaking on Iran, he states that the U.N security council will toughen its language (meeting Thu). He believes that the world is coming to a "moment of truth on Iran".

Insurance schemes??! :unsure:

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