Sterling collapses as investors fly into dollars
1–10 of 25 posts
Re: Sterling collapses as investors fly into dollars
#2Truss isn't exactly inspiring optimism to say the least, and this is when Europe as a whole already had a pretty bleak outlook.
Times like these you remember those (what feel like an eternity ago) days back in '07 where 1GBP would buy you 2USD...
Re: Sterling collapses as investors fly into dollars
#3Truss isn't exactly inspiring optimism to say the least, and this is when Europe as a whole already had a pretty bleak outlook. Times like these you remember those (what feel like an eternity ago) days back in '07 where 1GBP would buy you 2USD...
A lot, if not most, of the movements on currency markets right now is actually the US Dollar getting extremely strong. Pretty much all currencies are recording lows against the Dollar right now, as mentioned in the article.
Also note that the article does not use the word 'collapse', which is click-baity editing by the poster.
Re: Sterling collapses as investors fly into dollars
#4Years of working to make our country worse have led to our country getting worse. Who could have foreseen that!
The UK is in such a weird place right now. There are a group who legitimately want things to get worse because it serves their personal interest, and a group who think no matter how dumb we are, things will not get worse because we are the best country ever. They're conspiring to wreck the whole place. From Brexit to the last few PMs, to education cuts and wasteful spending, to energy "policy".
It's like watching a much smaller version of the fall of rome only without the class or sophistication.
/Rant
Re: Sterling collapses as investors fly into dollars
#5Pound/Euro is wobbling within regular limits. So this is Euro crisis, long overdue, because Eurocrats do not follow their own rules and use euromoney to save PIGS-countries.
Re: Sterling collapses as investors fly into dollars
#6Truss isn't exactly inspiring optimism to say the least, and this is when Europe as a whole already had a pretty bleak outlook. Times like these you remember those (what feel like an eternity ago) days back in '07 where 1GBP would buy you 2USD...
A lot, if not most, of the movements on currency markets right now is actually the US Dollar getting extremely strong. Pretty much all currencies are recording lows against the Dollar right now, as mentioned in the article. Also note that the article does not use the word 'collapse', which is click-baity editing by the poster.
The headline was changed from the original, not an uncommon practice by Reuters.
Re: Sterling collapses as investors fly into dollars
#7Years of working to make our country worse have led to our country getting worse. Who could have foreseen that! The UK is in such a weird place right now. There are a group who legitimately want things to get worse because it serves their personal interest, and a group who think no matter how dumb we are, things will not get worse because we are the best country ever. They're conspiring to wreck the whole place. From…
Would you mind sharing changes you feel on the ground? I am from Canada, and feel we are facing unprecedented problems in our society. What is global, and why is created by bad policy ?
Biggest issues in Canada:
1) stupidly priced real estate due to decade plus of factors (rates, building starts, land use, immigration, tax policy quirks)
2) since last year, inflation accelerated making all costs of living too high.. this lack of living wage is a key reason for the great resignation in the service sector imho.
3) tax incentives kill incentive to work. High end rates too high, support at margin seems too generous (CERB)
4) govt services being neglected .. e.g. healthcare. Stuff that remains is bloated ( civil servants getting massive raises relative to others)
I hear from the news, the tax cut being proposed in the uk at least addresses #3 above. I agree that the Econ implications on inflation don’t seem to have been thought through.
Re: Sterling collapses as investors fly into dollars
#8Pound/Euro is wobbling within regular limits. So this is Euro crisis, long overdue, because Eurocrats do not follow their own rules and use euromoney to save PIGS-countries.
Not really. It is energy crisis and countries that import fossil fuels are affected. I mean it might trigger the eurozone debt crisis but we are not seeing it yet.
Re: Sterling collapses as investors fly into dollars
#9Years of working to make our country worse have led to our country getting worse. Who could have foreseen that! The UK is in such a weird place right now. There are a group who legitimately want things to get worse because it serves their personal interest, and a group who think no matter how dumb we are, things will not get worse because we are the best country ever. They're conspiring to wreck the whole place. From…
Would you mind sharing changes you feel on the ground? I am from Canada, and feel we are facing unprecedented problems in our society. What is global, and why is created by bad policy ? Biggest issues in Canada: 1) stupidly priced real estate due to decade plus of factors (rates, building starts, land use, immigration, tax policy quirks) 2) since last year, inflation accelerated making all costs of living too high..…
The UK has very unstable economic policy. Despite one party being in charge for the last 12 years, each prime minister has wrought radically different economic policies. Under Cameron was austerity, services were cut and much pain was endured to “get the deficit down”. Under Johnson we had an investment-based economic policy, and then under Truss we are seeing tax cuts for the rich funded by borrowing which is an economic policy that I’m not sure has a name because it’s so stupid (Trussonomics?).
Already there are some calls from within the Conservative party to remove Truss and she has only been in the job for a matter of weeks.
All this time wages and services have suffered, because the political class is obsessed with ideology over the boring work of governance. I realise this is not a unique phenomenon around the world, but what seems to set apart the political class in the UK is the heady mix of egoism and delusion, that blinds them to their own incompetence until they are removed and someone else is instated.
Re: Sterling collapses as investors fly into dollars
#10Years of working to make our country worse have led to our country getting worse. Who could have foreseen that! The UK is in such a weird place right now. There are a group who legitimately want things to get worse because it serves their personal interest, and a group who think no matter how dumb we are, things will not get worse because we are the best country ever. They're conspiring to wreck the whole place. From…
Would you mind sharing changes you feel on the ground? I am from Canada, and feel we are facing unprecedented problems in our society. What is global, and why is created by bad policy ? Biggest issues in Canada: 1) stupidly priced real estate due to decade plus of factors (rates, building starts, land use, immigration, tax policy quirks) 2) since last year, inflation accelerated making all costs of living too high..…
Changes on the ground are gradual but basically:
* spiralling taxes on income for anyone above the bottom 20% of earners
* housing policy that actively stops construction, mis-allocates housing, maximises debt etc.
* collapsing public services due to lack of spending (NHS, Education, Local government provision)
* gold plated, very inefficient spending on certain benefits (housing and pensions and now energy)
The UK is the poster child for a lot of what Americans complain about with Boomers. When house prices go up 50% people shrug because boomers already own, when food prices go up 1%, government immediately offers anyone over 60 a huge subsidy. Then we realise there is no money so we defund health and education and increase taxes on working people. Rinse, Repeat.
The tax changes this week are nice (I will get an extra 2% in my pay packet) but they mostly just reverse the tax increases last year. Meanwhile I need to earn about 8% more this year just to keep up with inflation and because the allowances/bands don't change that will basically wipe out any gains from the "cut".
And we will need to vastly increase taxes very soon as we just decided to throw as much money at energy as we spend on education for under 18s. And that's not to solve the issue, it just paying people NOT to cut their use or insulate their houses...
/RantOnSteroids.