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British pound hits record low against the dollar

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Re: British pound hits record low against the dollar

#71

Post by kergonath »

PaulDavisThe1st wrote: post #49
1_over_n wrote: post #20

Earlier quoted context omitted.

Not a tax expert here. Singapore has a progressive personal tax system with top personal tax rate of 22% (i have not looked at Dubai). The UK also has a progressive personal tax system, they just cut their top rate of tax from 45% to 40% Corporate tax is 17% in Singapore, and 19% in the UK. Also factor in, Ireland has a corporate tax rate of 12.5% and progressive tax rate up to 40%. This cut seems meaningful from a m…

> The UK has suggested that economic "growth" will solve the problem. with zero evidence that their tax cuts will have any such consequences.

But plenty of historical evidence that they will not.

Re: British pound hits record low against the dollar

#72

Post by seibelj »

fzeroracer wrote: post #63
seibelj wrote: post #2

All 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.

You mean what they enacted in the last week? I don't think a few days of slightly-reduced taxes is going to move the needle

Re: British pound hits record low against the dollar

#73

Post by scott_w »

christophilus wrote: post #17
walrus01 wrote: post #4

Maybe the economic ramifications of Brexit were not fully thought out before everyone decided to vote for it.

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.

But the GBP is down on all those currencies, too. Whatever other countries are experiencing, the U.K. is getting it double.

Re: British pound hits record low against the dollar

#75

Post by peanuty1 »

xerxesaa wrote: post #40
kfarr wrote: post #30

Finally the market is settling in to the reality of Brexit! Looking forward to continued fall of the sterling as the united kingdom loses its unity. Will Northern Ireland or Scotland be first to go?

Somehow it strikes me as mean spirited to look forward benefiting from the troubles of a nation.

Many ppl in Scotland and Ireland view it as a gateway to independence they've long sought after.

Re: British pound hits record low against the dollar

#76

Post by scott_w »

stingraycharles wrote: post #62
astonex wrote: post #58

Earlier quoted context omitted.

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.

People with money don’t wait for it to become worthless…

Re: British pound hits record low against the dollar

#77

Post by seibelj »

roamerz wrote: post #28
seibelj wrote: post #9

Earlier quoted context omitted.

It is true the government can redistribute funds into investment. It’s also true if the citizens don’t make any money, the government will have little to tax and redistribute.

That’s only true if there is a balanced budget law that said government needs to comply with. The government here in the USA has been redistributing money here for ages that is not tied to taxation.

USA is a special case, with the dominant global reserve currency and military force, we have the special privilege of printing money that everyone needs. The UK hasn't been that since Bretton Woods

Re: British pound hits record low against the dollar

#78

Post by seibelj »

kentrado wrote: post #15
seibelj wrote: post #2

All 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 you are saying is the policy of the new prime minister. When it was announced, the pound lost 40% of its value as a result of that. Her policies are the result of an ideological adherence to Reaganomics trickle down economics instead of any pragmatic economic policy. I live here and your proposed hyper capitalistic haven sounds like a nightmare. You even preempted any possible failure this type of policy can hav…

You are experiencing the rot of failing economy in real time. The only solution is useful, productive enterprise - this is how functional, successful societies operate. There could be other paths there, but the most sure bet is to unshackle capital and let it invest freely.

Re: British pound hits record low against the dollar

#80

Post by nyokodo »

woodruffw wrote: post #19
Amfy wrote: post #13

I 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.

I'm no economist, but intentionally cutting themselves out of a massive common market probably isn't helping much.

> intentionally cutting themselves out of a massive common market probably isn't helping much.

My understanding is that they never intended to leave the common market but to gain a trade deal that would leave market access substantially the same. However, the EU wouldn’t let them keep access in the divorce if for no reason other than as a cautionary tale for other member states. So, it turned ugly and there they are.

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