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Darling Says Markets Must Set Fx Rates

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Rather like King Canute saying "The oceans* must set the tides."

There's something like $3Tr per day flowing through currency exchanges, so no country has the budget to shift things by throwing cash at the problem. Throwing words at it, now that's a different matter.

* for pedants: yes, the moon, etc.

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Rather like King Canute saying "The oceans* must set the tides."

There's something like $3Tr per day flowing through currency exchanges, so no country has the budget to shift things by throwing cash at the problem. Throwing words at it, now that's a different matter.

* for pedants: yes, the moon, etc.

Exactly. It makes no difference most of the time what the countries do because they will run out of funds before even breakfast.

Words will work. i don't know what he is trying to do, but I would suggest he is trying to make the market think he wants a strong pound, probably leading to the same result.

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Rather like King Canute saying "The oceans* must set the tides."

* for pedants: yes, the moon, etc.

:)

Mind you, for each action there is an equal and opposite reaction - thus the tides in turn exert a torque on the moon which over the millenia has caused it to be "tidally locked" resulting in it always presenting the same hemisphere towards the Earth... for double pedants, natch ;) .... what was this thread about again?

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:)

Mind you, for each action there is an equal and opposite reaction - thus the tides in turn exert a torque on the moon which over the millenia has caused it to be "tidally locked" resulting in it always presenting the same hemisphere towards the Earth...

i'm sure that is incorrect

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Mind you, for each action there is an equal and opposite reaction - thus the tides in turn exert a torque on the moon which over the millenia has caused it to be "tidally locked" resulting in it always presenting the same hemisphere towards the Earth... for double pedants, natch ;) .... what was this thread about again?

The 'etc.' in my post was just for you. ;)

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last chancellor disagreed.

He sold our gold whilst telling the market about the sale 2 weeks before.

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:)

Mind you, for each action there is an equal and opposite reaction - thus the tides in turn exert a torque on the moon which over the millenia has caused it to be "tidally locked" resulting in it always presenting the same hemisphere towards the Earth... for double pedants, natch ;) .... what was this thread about again?

Actually I think you'll find, by a bizarre cosmic coincidence that the moon spins on its axis once in exactly the same time as it takes to travel around the earth once. That's why we always see the same side.

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Actually I think you'll find, by a bizarre cosmic coincidence that the moon spins on its axis once in exactly the same time as it takes to travel around the earth once. That's why we always see the same side.

yes - nothing to do with our tides (unfortunately named tidal lock)

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Actually I think you'll find, by a bizarre cosmic coincidence that the moon spins on its axis once in exactly the same time as it takes to travel around the earth once. That's why we always see the same side.

Sossij gets it right, Lets' get it right got it wrong.

Bizarre cosmic coincidence indeed!

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OK, the bit I find odd is that while the markets do set FX rates, they are actually taking a position estimating the relative strength of economies. While the markets set the rates, the markets do not define our economy - the government has a great deal of influence - in terms not only of how its central bank behaves... but also with respect to taxation.

It seems that Darling is making out that he has no influence... it seems similar to saying that the examiner issues the grades - the implication being that the student's work is not at issue.

I wonder if Reuters or Darling pushed the interview in this direction?

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i'm sure that is incorrect
Actually I think you'll find, by a bizarre cosmic coincidence that the moon spins on its axis once in exactly the same time as it takes to travel around the earth once. That's why we always see the same side.
yes - nothing to do with our tides (unfortunately named tidal lock)

ahem.... gentlemen, if I may:

http://en.wikipedia.org/wiki/Tidal_locking

Mechanism

The change in rotation rate necessary to tidally lock a body B to a larger body A is caused by the torque applied by A's gravity on bulges it has induced on B by tidal forces.

Tidal bulges: A's gravity produces a tidal force on B which distorts its gravitational equilibrium shape slightly so that it becomes stretched along the axis oriented toward A, and conversely, is slightly compressed in the two perpendicular directions. These distortions are known as tidal bulges. When B is not yet tidally locked, the bulges travel over its surface, with one of the two "high" tidal bulges travelling close to the point where body A is overhead. For large astronomical bodies which are near-spherical due to self-gravitation, the tidal distortion produces a slightly prolate spheroid or ellipsoid. Smaller bodies also experience distortion, but this distortion is less regular.

Bulge dragging: The material of B exerts resistance to this periodic reshaping caused by the tidal force. In effect, some time is required to reshape B to the gravitational equilibrium shape, by which time the forming bulges have already been carried some distance away from the A-B axis by B's rotation. Seen from a vantage point in space, the points of maximum bulge extension are displaced from the axis oriented towards A. If B's rotation period is shorter than its orbital period, the bulges are carried forward of the axis oriented towards A in the direction of rotation, whereas if B's orbital period is shorter the bulges lag behind instead.

Resulting torque: Since the bulges are now displaced from the A-B axis, A's gravitational pull on the mass in them exerts a torque on B. The torque on the A-facing bulge acts to bring B's rotation in line with its orbital period, while the "back" bulge which faces away from A acts in the opposite sense. However, the bulge on the A-facing side is closer to A than the back bulge by a distance of approximately B's diameter, and so experiences a slightly stronger gravitational force and torque. The net resulting torque from both bulges, then, is always in the direction which acts to synchronise B's rotation with its orbital period, leading eventually to tidal locking.

Orbital changes: The angular momentum of the whole A-B system is conserved in this process, so that when B slows down and loses rotational angular momentum, its orbital angular momentum is boosted by a similar amount (there are also some smaller effects on A's rotation). This results in a raising of B's orbit about A in tandem with its rotational slowdown. For the other case where B starts off rotating too slowly, tidal locking both speeds up its rotation, and lowers its orbit.

Locking of the larger body: The tidal locking effect is also experienced by the larger body A, but at a slower rate because B's gravitational effect is weaker due to B's smaller size. For example, the Earth's rotation is gradually slowing down because of the Moon, by an amount that becomes noticeable over geological time in some fossils. For similar sized bodies the effect may be of comparable size for both, and both may become tidally locked to each other. The dwarf planet Pluto and its satellite Charon are good examples of this— Charon is only visible from one hemisphere of Pluto and vice versa.

Rotation-Orbit resonance: Finally, in some cases where the orbit is eccentric and the tidal effect is relatively weak, the smaller body may end up in an orbital resonance, rather than tidally locked. Here the ratio of rotation period to orbital period is some well-defined fraction different from 1:1. A well known case is the rotation of Mercury—locked to its orbit around the Sun in a 3:2 resonance.

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OK, the bit I find odd is that while the markets do set FX rates, they are actually taking a position estimating the relative strength of economies. While the markets set the rates, the markets do not define our economy - the government has a great deal of influence - in terms not only of how its central bank behaves... but also with respect to taxation.

Maybe he's implying that he has no plans to introduce currency/exchange controls, though even the denial of such an option would be terrifying.

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still (i think) not to do with the tides of our sea, which was where this discussion originated.

i admit i used wiki as my source too.

The moon acts on the oceans causing them to bulge, the result of which is the tides (i.e. the seas going out and in again). These bulges in turn (re)act in equal measure on the moon ... that wiki page is really quite interesting :)

Edited by sossij

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The moon acts on the oceans causing them to bulge, the result of which is the tides (i.e. the seas going out and in again). These bulges in turn (re)act in equal measure on the moon ... that wiki page is really quite interesting :)

It's hard to get my head round that. You'll be telling me next that house prices are falling!

;)

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Bizarre cosmic coincidence indeed!

Indeed, isnt it that the Man In The Moon wants to keep an eye on us in case we decide to come and steal his cheese? Couldnt do that with his back to us, could he?

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It's hard to get my head round that. You'll be telling me next that house prices are falling!

;)

Blasphemer! Dissembler and peddlar of untruths! Burn him! :D

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Rather like King Canute saying "The oceans* must set the tides."

There's something like $3Tr per day flowing through currency exchanges, so no country has the budget to shift things by throwing cash at the problem. Throwing words at it, now that's a different matter.

* for pedants: yes, the moon, etc.

The story of Canute (or Knutr) has become one of those misunderstood legends. His original point was that being King did not mean he had some supernatural power, and he was demonstrating this to his fawning courtiers, although this may in itself be a myth.

So, Canute was trying to say the oceans must set the tides, in effect. :)

Amateur pedants, the lot of you. ;)

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Indeed, isnt it that the Man In The Moon wants to keep an eye on us in case we decide to come and steal his cheese? Couldnt do that with his back to us, could he?

now that explanation does make some sense to me.

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  • 292 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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