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Uk's Trade Deficit Widens

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The UK's trade deficit widened more than expected in May. :rolleyes:

http://news.sky.com/skynews/Home/Business/Bad-Signs-For-Hoped-For-Export-Led-Recovery-As-UK-Trade-Deficit-Widens-More-Than-Expected-In-May/Article/201007215661973?f=rss

Paul the Octopus didn't predict that one.

ONS explains that this was in goods only:

"The surplus on trade in services was £4.2 billion in May, compared with a surplus of £3.9 billion in April."

Still flogging all those financial products to foreigners then eh?

http://www.statistics.gov.uk/cci/nugget.asp?id=199

Edited by deflation

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The UK's trade deficit widened more than expected in May. :rolleyes:

http://news.sky.com/skynews/Home/Business/Bad-Signs-For-Hoped-For-Export-Led-Recovery-As-UK-Trade-Deficit-Widens-More-Than-Expected-In-May/Article/201007215661973?f=rss

Paul the Octopus didn't predict that one.

ONS explains that this was in goods only:

"The surplus on trade in services was £4.2 billion in May, compared with a surplus of £3.9 billion in April."

Still flogging all those financial products to foreigners then eh?

http://www.statistics.gov.uk/cci/nugget.asp?id=199

Unbelievable. £1bn worse than expected.

£ is around 20% down against € in 3 years yet the defiicit still grows.

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Not surprising , Euro is so low now.

Not surprising the pound is low and the insutries that have been lost are never coming back if the core skills and facilities have gone and others are never coming back if the cost base doesn't lower.

Basically becoming a poor country reliant on imports it cannot afford.

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Unbelievable. £1bn worse than expected.

£ is around 20% down against € in 3 years yet the defiicit still grows.

It is just an indicator of how much this debt bubble has destroyed.

They don't want to talk about it, as that would admit culpability.

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It is just an indicator of how much this debt bubble has destroyed.

They don't want to talk about it, as that would admit culpability.

Maybe true, but where's the money coming from for it to increase.

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Maybe true, but where's the money coming from for it to increase.

The future - money that isn't going into savings, money that isn't going into investment, money that isn't going into pensions. Also from newly printed money and more debt. Once no more can be plundered then it may fall.

Edited by OnlyMe

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Jim Rogers looks right.....................it will take time...................but when the World wakes up to "Iceland on sea"......then a Thing of beauty will arrive!

Mike

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In an un-guarded moment Labour PM Wilson said of this................."No export led recovery, just a way of cutting off imports!"

Cut off demand via devalueation.....to balance the books.................oldest trick in the book!

Mike

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Not surprising the pound is low and the insutries that have been lost are never coming back if the core skills and facilities have gone and others are never coming back if the cost base doesn't lower.

Basically becoming a poor country reliant on imports it cannot afford.

the more people that live in the UK the worse those figures are going to get as more farming and industrial land is converted to housing lands

Edited by Ruffneck

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the more people that live in the UK the worse those figures are going to get as more farming and industrial land is converted to housing lands

...not to mention the fact that N Sea production declines are moving UK from energy exporter to importing around 80% of our energy needs in a 15 year timespan from 2005 to 2020. At current prices that's pointing to a trade deficit in energy alone of £5bn per month by 2020. BAU is going to be awfully expensive in terms of foreign currency.

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the more people that live in the UK the worse those figures are going to get as more farming and industrial land is converted to housing lands

The land will make chuff all difference but I think you are right nevertheless since most people consume imported goods. This is the dilemma that has no solution. More young people are needed to pay the taxes to support the old. More immigration or a falling life expectancy are therefore good financially but are not what people want politically. The crass stupidity of Thatcher's reliance on financial services is coming home to roost. Perhaps Dave's plan is to make everyone so dirt poor so we don't buy any imported stuff at all?

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You have to match Asia's import tariffs or this will just get worse.

Shock!

Protectionism!

Noooooo!

Naughty Boy go and wash your mouth out!

You must have faith in the market, the market will provide, the market will provide, the market will provide, the market will provide.

Our leaders have all converted to a weird cargo cult that worships an abstract concept called 'the market', you must have faith in the market or the market will be cross and it's wrath will fall upon you.

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Guest Noodle

Shock!

Protectionism!

Noooooo!

Naughty Boy go and wash your mouth out!

You must have faith in the market, the market will provide, the market will provide, the market will provide, the market will provide.

Our leaders have all converted to a weird cargo cult that worships an abstract concept called 'the market', you must have faith in the market or the market will be cross and it's wrath will fall upon you.

Simply match the tariffs these other countries impose on your products.

For example. If I want a little Corsavan out here it will cost me . . . £9000 + 235% import duty. Then 2% VAT for commercials. Add a bunch of other charges on top . . . and we're now looking at the thick end of over £30,000!!!

Unless you do this, deal with this protectionism and dumping from the East . . . it will simply get worse.

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Simply match the tariffs these other countries impose on your products.

For example. If I want a little Corsavan out here it will cost me . . . £9000 + 235% import duty. Then 2% VAT for commercials. Add a bunch of other charges on top . . . and we're now looking at the thick end of over £30,000!!!

Unless you do this, deal with this protectionism and dumping from the East . . . it will simply get worse.

In a more serious tone, protectionism leads to resentment, then war.

I would prefer to adopt a 'global minimum wage' policies for all imports into the EU. Companies can still go and employ slave labour if they want, but when it gets to the border everything gets taxed up to our wage levels and the tax gets used for development aid in the country of origin.

The idea that somehow our way of life would collapse if it wasn't for foreign slaves is rubbish. If a living wage was paid to all workers, automation would improve productivity instead of what is currently happening which is investment in automation gets put off as it is easier to exploit cheap labour.

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Guest Noodle

In a more serious tone, protectionism leads to resentment, then war.

I would prefer to adopt a 'global minimum wage' policies for all imports into the EU. Companies can still go and employ slave labour if they want, but when it gets to the border everything gets taxed up to our wage levels and the tax gets used for development aid in the country of origin.

The idea that somehow our way of life would collapse if it wasn't for foreign slaves is rubbish. If a living wage was paid to all workers, automation would improve productivity instead of what is currently happening which is investment in automation gets put off as it is easier to exploit cheap labour.

You'll be (are) more skint than them if you don't tackle this. You'll also lose your 'means of production' (happy? will love that old quote).

There is already protectionism, fierce protectionism. There is no globalisation. It's a one-way street.

I see it here, real wealth creation, then I look at Blighty and all I hear is a load of people talking shite and completely missing what is unfolding in front of them . . . it's scary.

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Guest Noodle

Jesus that's one hell of a tax.

However surely you can do that for the things you produce.

I don't think we can all afford to drive Morgan's.

Oh no. You have a wide range of vehicles at reasonable new prices. They're just made here is all.

Get the picture?

Protectionism.

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Oh no. You have a wide range of vehicles at reasonable new prices. They're just made here is all.

Get the picture?

Protectionism.

Same strategy that the US used in the 1800s, but studying history has no relevance.

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Guest Noodle

Same strategy that the US used in the 1800s, but studying history has no relevance.

Thing is, back then there wasn't this huge global trade. This is a real problem for the West. They have forgotten how to create, to add value, what real wealth is . . . the effects masked by a temporary deflation of bits and pieces . . . and a growing deficit and at the same time loss of production.

Has to come to a head at some point.

I just can't believe no one even wants to tackle this. Get the East to not be protectionist, because they are.

You know the cost of any imported items here, it's brutal.

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Thing is, back then there wasn't this huge global trade. This is a real problem for the West. They have forgotten how to create, to add value, what real wealth is . . . the effects masked by a temporary deflation of bits and pieces . . . and a growing deficit and at the same time loss of production.

Has to come to a head at some point.

I just can't believe no one even wants to tackle this. Get the East to not be protectionist, because they are.

You know the cost of any imported items here, it's brutal.

Is there still talk of an Asian free trade area? Can't imagine what would happen to the west in that case.

By the way, what time is it there? You seem to be keeping unsociable hours.

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  • 261 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
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      • Even
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      • up 5%



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