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Uk's Current Account Deficit Post War Record!

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http://www.telegraph.co.uk/finance/economics/11532598/Why-the-UKs-current-account-deficit-has-economists-scared.html

The UK is one of a few major economies in the world that isn’t keeping investors awake at night. The eurozone and Japan are battling with stagnation, China faces the prospect of a hard landing, and the US is poised to hike interest rates. The UK, by contrast, faces very few home-grown risks.

However, there is one rather large cloud on the horizon: the country’s current account deficit. This is the difference between the amount of goods, services and payments the UK sends to the rest of the world and the amount coming in. In short, it is the difference between the amount of money flowing in and out of the UK.

And, at the moment, cash is draining out of the UK like water down an open plughole – the UK’s current account deficit recently rose to its highest level as a share of GDP since records began.

..A month later, Ben Broadbent, the Bank’s deputy governor for monetary policy, said the deficit suggests the UK has been savvy in borrowing from abroad to fund investments...The deficit was 5.4pc of GDP at the time of the Governor’s speech last year. It then climbed to 5.6pc in the final quarter of 2014, according to the Office for National Statistics.

Yeah a post war record in the midst of a recovery!!

Luckily everyone wants to invest in UK housing....

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The UK, by contrast, faces very few home-grown risks.

However, there is one rather large cloud on the horizon: the country’s current account deficit. This is the difference between the amount of goods, services and payments the UK sends to the rest of the world and the amount coming in. In short, it is the difference between the amount of money flowing in and out of the UK.

And, at the moment, cash is draining out of the UK like water down an open plughole

That won't be a home grown risk though.

Edited by billybong

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Yay!

We been broken down
the lowest turn
and been on the bottom line
sure ain't no fun
but if we should be evicted from our homes
we'll just move somewere else
and still carry on
Hold on, Hold on, Hold on

Chorus
The only way is up, baby
For you and me, baby
The only way is up
For you and me

Now we may not known
Where our next meal is coming from

But with you by my side
I'll face what is come
boy, I wanna thank you
for loving me this way
things may be a little hard now
but we'll find a brighter day
Hold on, Hold on, Hold on

Chorus

Edited by XswampyX

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Seeing as they're referring to post war the link below gives a chart of the £$ exchange rate since 1945 showing it's decline from about 4.0 in 1945 to about 1.5 now.


http://

www.miketodd.net/encyc/dollhist-graph2.htm

Posted for the chart and not the text. The text might be of interest as well though.

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Seeing as they're referring to post war the link below gives a chart of the £$ exchange rate since 1945 showing it's decline from about 4.0 in 1945 to about 1.5 now.

Posted for the chart and not the text. The text might be of interest as well though.

Very interesting. The lows correspond broadly with the electoral cycle, the exact inverse of house prices. Both a consequence of artificially suppressing base rates to generate an easy money 'Otis Feelsgood' effect for the electorate.

How long before 1985's $1.05:£1 is the order of the day again? Then, at least, the UK had vast reserves of North Sea oil and gas to exploit.

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