Earlier quoted context omitted.
Indeed, a great time to vacation in the UK!
just don’t require any medical attention while you’re there, or, like, heat….
Travel insurance is cheap.
British pound hits record low against the dollar
61–70 of 379 posts
Re: British pound hits record low against the dollar
#62Earlier quoted context omitted.
So almost 10% drop relative to the Euro in addition to both of them falling against the dollar. I wonder what's behind that particular weakness for the pound.
The government just announced tax-cuts backed by borrowing, so likely to increase inflation even further.
But isn’t inflation usually an effect that happens after such an event, rather than something that’s being speculated on?
Unless large institutions decided to sell their pounds, but that has to be a huge supply of pounds to make such an impact.
Re: British pound hits record low against the dollar
#63All government revenues are the result of taxing citizens. Citizens only have money to be taxed if they are employed in productive money-generating enterprises. If the laws and regulations of the nation are such that the citizens can’t make money, then the government has no choice but to cut taxes and regulations until private business can flourish again. Otherwise it’s a never ending strangling of business, lower re…
What exactly would it take for you to accept that your policy proposals are a failure? Honest question here, because what I see is the UK doing exactly what you are saying they should do, but it's resulting in the general economic destruction of their country.
Re: British pound hits record low against the dollar
#64Earlier quoted context omitted.
The Euro and Yen and almost all currencies are also down significantly vs the dollar, so I don’t think this is a Brexit thing. This is a strong US dollar thing as the world grapples with collateral shortages and a relative dollar shortage. Edit: I highly recommend the podcast “Eurodollar University” on the subject.
In the last 60 days, the GBP has slid from 1.20 EUR to 1.09 EUR, fwiw. It definitely looks like something other than a strong dollar.
On the other hand the USD is also nearing a really high value relative to CAD
Re: British pound hits record low against the dollar
#65Re: British pound hits record low against the dollar
#66https://twitter.com/paulkrugman/status/1573649995290628096 The iron law of Krugman strikes again. I really need to start trading on this.
Paul Krugman is probably the most consistently wrong popular economist I can think of.
Re: British pound hits record low against the dollar
#67Earlier quoted context omitted.
Wow, finally someone that I find on a web forum also willing to utter the words "dollar shortage" during this time. Big props to Jeff and Emil for their generous freely available teachings. I further recommend their paid subscription too. It's well worth it. These times are easy to see coming if you had the right monetary lens on.
Ok, so what happens next then?
The market is going to go down a little more, then way up.
Re: British pound hits record low against the dollar
#68Maybe the economic ramifications of Brexit were not fully thought out before everyone decided to vote for it.
Maybe this has nothing to do with Brexit, but more with energy prices and Tory tax cuts. As far as I know, not a single doomsaying Brexit prediction has come to pass.
> Maybe this has nothing to do with Brexit, but more with energy prices and Tory tax cuts.
Most likely all of it. No decision is made in a vacuum, and all of them are compounding factor. In retrospect, the timing for Brexit was pretty bad (on top of it being a stupid idea badly implemented).
> As far as I know, not a single doomsaying Brexit prediction has come to pass.
Funny thing is, I have a hard time thinking of a prediction that did not materialise, from the fall in both imports and exports, the divergence in standards to ensure that trade will never be smooth again, the increase in red tape and bureaucracy, the government openly discussing tearing down the Good Friday agreement, the relaxing of environment protections, to the lorries queuing in Dover.
Re: British pound hits record low against the dollar
#69I wonder why the GBP is going down so much faster than EUR. If this is because of expensive energy imports, they should go down equally fast? Edit: Ahh, tax cuts and concern of larger deficit.
The cause is a direct response to the government announcing their ~budget~ "fiscal event", which is to cut taxes, particularly on the rich, and increase spending
She was not kidding when she said she was Thatcher v.2. Exactly what the UK did not need.