Prude Posted March 29, 2006 Share Posted March 29, 2006 Worth reminding ourselves that before the renewed pressure on the pound today, what the pound has already done against the currencies of our import partners in the past year; Since Apr'05; GBP v .. Malaysian Ringgit -12% Hong Kong Dollar -10% Thai Baht -11% Singapore Dollar -11% Indian Rupee -7% Pakistani Rupee -9% Euro -4% Turkish Lira -15% US Dollar -10% Mexican Peso -10% Saudi Riyal -9.5% Canadian Dollar -15% With these number in place and likely to get worse - how can an import addicted, comsumer society like ours be claiming 2% inflation? If these currency costs have not been passed on to comsumers then how long can importers go on absorbing them when they have massively increased energy and shipping costs to factor in? Quote Link to comment Share on other sites More sharing options...
LittleBear Posted March 29, 2006 Share Posted March 29, 2006 Worth reminding ourselves that before the renewed pressure on the pound today, what the pound has already done against the currencies of our import partners in the past year; Since Apr'05; GBP v .. Malaysian Ringgit -12% Hong Kong Dollar -10% Thai Baht -11% Singapore Dollar -11% Indian Rupee -7% Pakistani Rupee -9% Euro -4% Turkish Lira -15% US Dollar -10% Mexican Peso -10% Saudi Riyal -9.5% Canadian Dollar -15% With these number in place and likely to get worse - how can an import addicted, comsumer society like ours be claiming 2% inflation? If these currency costs have not been passed on to comsumers then how long can importers go on absorbing them when they have massively increased energy and shipping costs to factor in? As far as the drop against the US Dollar you are looking back to a date when the Dollar was very high. Your comparisons are convenient for your point. Since July 2005 the Pound is NOT down!!! Quote Link to comment Share on other sites More sharing options...
Prude Posted March 29, 2006 Author Share Posted March 29, 2006 As far as the drop against the US Dollar you are looking back to a date when the Dollar was very high. Your comparisons are convenient for your point. Since July 2005 the Pound is NOT down!!! But the £ has fallen by 10% or so this financial year. It's just that most of the fall was between Apr and July. I chose this 1yr timescale precisely because it is budgeting time for companies (end of tax year etc), not because it is convenient. In any case against, for some the currencies above, the fall approximates to a straight line APr05 to Mar06. If we took the 6 months from Sep 05 as a half year measure, all show big minuses including the dollar. There is no doubt which way the pound has gone in the past 12mths and which way it is heading in the current climate (That's the climate where the BOE and GB believe we can ignore the world direction on interest rates) Quote Link to comment Share on other sites More sharing options...
CrashIsUnderWay Posted March 29, 2006 Share Posted March 29, 2006 dont waste ur time P-man. Trend is down for the pound, obviously. Whoever this pump and dumpster is, he's on the wrong board. He should try one of the money / investment forums. Quote Link to comment Share on other sites More sharing options...
MarkG Posted March 29, 2006 Share Posted March 29, 2006 Mexican Peso -10% Really comes to something when the Mexican Peso is a more solid currency than the pound... Quote Link to comment Share on other sites More sharing options...
Prude Posted March 29, 2006 Author Share Posted March 29, 2006 I think my real question on this thread is why haven't we seen the devaluation that has already occured feed into the inflation figures? Quote Link to comment Share on other sites More sharing options...
OzzMosiz Posted March 29, 2006 Share Posted March 29, 2006 I think my real question on this thread is why haven't we seen the devaluation that has already occured feed into the inflation figures? Because the government are hiding them? Quote Link to comment Share on other sites More sharing options...
MarkG Posted March 29, 2006 Share Posted March 29, 2006 why haven't we seen the devaluation that has already occured feed into the inflation figures? Because companies are cutting costs and profits rather than raising prices? Whereas thirty years ago they might have to increase prices to make up for increases in costs, now they can lay off British workers and either hire cheap immigrants or ship the jobs to India and China. Just another way in which price inflation gives the wrong signals even if it's using valid numbers. Doesn't much matter if inflation is low when no-one has a job in the UK anymore. Quote Link to comment Share on other sites More sharing options...
right_freds_dead Posted March 29, 2006 Share Posted March 29, 2006 so if you had your 10k savings in dollars and not £ you would have saved £1000.00 ? Quote Link to comment Share on other sites More sharing options...
Prude Posted March 29, 2006 Author Share Posted March 29, 2006 Really comes to something when the Mexican Peso is a more solid currency than the pound... 16:00 The pound has fallen 0.95% today against the mighty Peso! The largest fall of the day! Quote Link to comment Share on other sites More sharing options...
Wuluf Posted March 29, 2006 Share Posted March 29, 2006 (edited) Really comes to something when the Mexican Peso is a more solid currency than the pound... I thought solidity (or otherwise) of a currency was based on a lack of volatility AND the presence of a persistent downward trend? To make that statement you should really plot the Peso against other currencies and also confirm that the mid/long term trend Sterling/Peso is downward. You would also need to show that the Peso is less volatile Edited March 29, 2006 by Wuluf Quote Link to comment Share on other sites More sharing options...
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