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Falling Dollar Affect Uk Ir's?

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A falling dollar against sterling from what i know will not affect our Ir's.

Reason.. we import goods more than export, our import prices in turn will be cheaper thus no inflation.

inflation is affecting the US because of their falling dollar, thus they have increased their IR's, 0.5% above us. Has this had any affect in the UK or sterling.. No.

can someone explain how the falling dollar will affect our economy and will we ever see inflation such as they are at the moment?

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A falling dollar against sterling from what i know will not affect our Ir's.

Reason.. we import goods more than export, our import prices in turn will be cheaper thus no inflation.

inflation is affecting the US because of their falling dollar, thus they have increased their IR's, 0.5% above us. Has this had any affect in the UK or sterling.. No.

can someone explain how the falling dollar will affect our economy and will we ever see inflation such as they are at the moment?

tbh ive not heard of a decent direct affect that can be attributed to america.. im sure there are some but i havnt heard of many..

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tbh ive not heard of a decent direct affect that can be attributed to america.. im sure there are some but i havnt heard of many..

then i can't see where inflation will come from, our sterling is still strong and goods are still affordable, there is only a small amount of people having problems with bankruptcy. The CPI is not rising dramatically and the graph on the front page says it all. |'ve never seen a graph like that before..

the only way to cause a drop in prices IMO is for IR's to rise, i can't see that happening significantly for a long long time yet.

evreyone that hasn't bought put your life on hold for the next few years..

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then i can't see where inflation will come from, our sterling is still strong and goods are still affordable, there is only a small amount of people having problems with bankruptcy. The CPI is not rising dramatically and the graph on the front page says it all. |'ve never seen a graph like that before..

the only way to cause a drop in prices IMO is for IR's to rise, i can't see that happening significantly for a long long time yet.

evreyone that hasn't bought put your life on hold for the next few years..

Ahhh.

Inflation will not come from somewhere, its already here grasshopper.

CPI is a load of old b0llocks cooked up by GB to keep IRs low.

If you can't figure out for yourself that inflation is above 2% you should worry.

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A falling dollar against sterling from what i know will not affect our Ir's.

Reason.. we import goods more than export, our import prices in turn will be cheaper thus no inflation.

inflation is affecting the US because of their falling dollar, thus they have increased their IR's, 0.5% above us. Has this had any affect in the UK or sterling.. No.

can someone explain how the falling dollar will affect our economy and will we ever see inflation such as they are at the moment?

I think a falling dollar will mean the Federal Reserve will hike interest rates up.

That will mean it is better to put your investments in dollar based vehicles, which will create less demand for GBP based investment, so we will hike rates just to make the GBP competitive on the world money markets.

I'm no expert, this is just my simple understanding, experts please wade in

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Ahhh.

Inflation will not come from somewhere, its already here grasshopper.

CPI is a load of old b0llocks cooked up by GB to keep IRs low.

If you can't figure out for yourself that inflation is above 2% you should worry.

errrrrm, hasn't the "it's alla load of bull turd massaged fudged up figures that make the CPI" been going on for a looooooooooonnnngggggg time around here, years infact. Have you seen any adverse affects?

What about RPI (the old model) do you see a major upward trend there sonny, if you can't see that you should be worried!

put it this way sonny as long as we import our goods at cheap prices, and our sterling keeps rising in value forget the word Inflation.

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errrrrm, hasn't the "it's alla load of bull turd massaged fudged up figures that make the CPI" been going on for a looooooooooonnnngggggg time around here, years infact. Have you seen any adverse affects?

What about RPI (the old model) do you see a major upward trend there sonny, if you can't see that you should be worried!

put it this way sonny as long as we import our goods at cheap prices, and our sterling keeps rising in value forget the word Inflation.

deflation would be worse than inflation. Debts becoming more valuable makes them harder to pay off. If you're mortgaged to the hilt - pray for inflation, its the debtors way out, and also the BoE's way out of overlending.

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deflation would be worse than inflation. Debts becoming more valuable makes them harder to pay off. If you're mortgaged to the hilt - pray for inflation, its the debtors way out, and also the BoE's way out of overlending.

That is the most senseless, stupid thing i have ever heard, what an ingnorant c0ck you are, how the hell will things get cheaper in an increased money supply envirionment it has NEVER happened in the past... NEVER!! It don't happen you idiot, come back when you start making sense.

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errrrrm, hasn't the "it's alla load of bull turd massaged fudged up figures that make the CPI" been going on for a looooooooooonnnngggggg time around here, years infact. Have you seen any adverse affects?

Adverse affects? No not me. No adverse affects around here. Anyone else seen any? Everything is tickety boo as far as I can see. Not an indebted person in sight and salaries are rising like you wouldnt believe.

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I think a falling dollar will mean the Federal Reserve will hike interest rates up.

That will mean it is better to put your investments in dollar based vehicles, which will create less demand for GBP based investment, so we will hike rates just to make the GBP competitive on the world money markets.

I'm no expert, this is just my simple understanding, experts please wade in

That is pretty much how it works.

The thing that got me thinking is that we talk a lot about the US market on here just because it is crashing, which is no real suprise surely after 16 straight months of IR rises. We talk about it here as it might as well be happening to our market, as if it a full gone conclusion that because america is falling then we must fall. Getting all excited about the american housing market - yet i, like some others see house prices rising in this country still.

Im yet to hear any direct argument why this is the case though.

Edited by theChuz

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That is the most senseless, stupid thing i have ever heard, what an ingnorant c0ck you are, how the hell will things get cheaper in an increased money supply envirionment it has NEVER happened in the past... NEVER!! It don't happen you idiot, come back when you start making sense.

I think you lose the argument when you start to name call, deflation is possible it happened in Japan, inflation well you can look to the cost of energy somewhere along the line it has to be paid for, cost of raw materials has risen, the manufactures can not keep absorbing the cost.

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That is the most senseless, stupid thing i have ever heard, what an ingnorant c0ck you are, how the hell will things get cheaper in an increased money supply envirionment it has NEVER happened in the past... NEVER!! It don't happen you idiot, come back when you start making sense.

:lol: I dont think you've ever borrowed money to buy anything, especially not a house.

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That is the most senseless, stupid thing i have ever heard, what an ingnorant c0ck you are, how the hell will things get cheaper in an increased money supply envirionment it has NEVER happened in the past... NEVER!! It don't happen you idiot, come back when you start making sense.

I was referring to cheaper and cheaper imports, driving prices down, limiting pay increases. This is deflationary. Mega inflation = mega payrises, that's what I want.

I do not believe that the BoE will EVER let deflation in.

However, this is what happened in Japan very recently, and I thought this was what happened in the USA in the 1920s.

As I said in my previous post, I'm no expert, but I do know how to spell ignorant.

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deflation would be worse than inflation. Debts becoming more valuable makes them harder to pay off. If you're mortgaged to the hilt - pray for inflation, its the debtors way out, and also the BoE's way out of overlending.

That is spot on Adam

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how the hell will things get cheaper in an increased money supply envirionment it has NEVER happened in the past... NEVER!!

You're using a computer, probably with a 3+GHz CPU. Not only did it probably cost less than an Apple 3 did twenty years ago, not just in real terms but in nominal terms, but you couldn't have bought a 3GHz PC for _any_ price at that time.

If 'things have never got cheaper', your PC would cost trillions of dollars. Oddly enough, it didn't.

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All currencies are tanking in terms of purchasing power, the dollar is tanking more precipitously than the others, I fail to see how this is good news. America also runs a massive trade deficit, a weak dollar will impact demand for imports, drive up inflation and slow their economy, combined with expensive oil you have a heady mix for stagflation. If you think that's good news for the UK economy and for British companies that do business with the US then you need to think again.

errrrrm, hasn't the "it's alla load of bull turd massaged fudged up figures that make the CPI" been going on for a looooooooooonnnngggggg time around here, years infact. Have you seen any adverse affects?

Yup, it means peoples' wages are not keeping up with prices and the cost of living, you see the effects of this everyday in terms of debt, fuel poverty and even 15% of people neglecting to pay their bills.

That is the most senseless, stupid thing i have ever heard, what an ingnorant c0ck you are, how the hell will things get cheaper in an increased money supply envirionment it has NEVER happened in the past... NEVER!! It don't happen you idiot, come back when you start making sense.

You don't get it, for the last 30 years people haven't paid off their mortgage, inflation paid it off for them! Wages rose massively in real terms and their debt remained static, this formed the basis of the "property ladder". For example, say you took out a mortgage in 1970 and it consumed half of take home pay, by 1980 it would have only consumed a fraction of pay, even if you remained in exactly the same job. By the time the final repayments were made in 2005 the monthly cost would have been laughable.

House price inflation is inflation, it is the increase of the money supply driving up prices, except modern CPI and RPI-X measures of inflation do not measure HPI so it doesn't translate into earnings.

If you have a big mortgage you pray for [wage] inflation!

Edited by BuyingBear

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  • 301 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% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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