Reply to: Sterling strength against Euro???

[Cyberman]

The pound will weaken again soon. Interest rate cuts are being mooted again in the media today, which is very good news indeed.

[Francko]

How do they feel about Italy then?

Italy still produces some real value. They still have some of the best manufacturing industries in the world instead of some paper economies.

[Francko]

Italy does have high public debt, but it doesn't have a housing bubble

Regarding the banking system the reason is only because it's still in the middle ages.

[DiscoStu]

For some strange reason, I hear this guys voice when I read your posts.

Carrying on the theme, I tend to hear this guy instead

[DodgyAgent]

For some strange reason, I hear this guys voice when I read your posts.

at least this Harry Enfield character can work out the bleeding obvious even with half a brain.

[Rantor]

The Euro does not necessarily force fiscal responsibility, but it does remove an individual country's control of its own economy by using fiscal measures such as raising or lowering its own interest rates. Thus, those in a recession are locked in to a longer recession than is desirable.

For some strange reason, I hear this guys voice when I read your posts.

[Cyberman]

Italy is not bringing the Euro crashing down, perhaps because it is not big enough. In fact it's the other way round, Italy is the Euro member country with the strongest sentiment in favour of leaving and bringing back their old currency. Presumably the Euro enforces fiscal responsibility, and the Italians don't like that.

The Euro does not necessarily force fiscal responsibility, but it does remove an individual country's control of its own economy by using fiscal measures such as raising or lowering its own interest rates. Thus, those in a recession are locked in to a longer recession than is desirable.

[d000hg]

Then you should have negotiated the cheque (dunno who'll do this but Barclays always used to). Basically you sell them the cheque as a negotiable instrument, instant credit at an agreed rate (I used to get interbank 250k -0.25% on FrF). In the event of the cheque not clearing (usually some time later of course) then it debited back (at the rate at the time of course).

Not come across that, thanks for the info. Normally, I don't like paper cheques but the normal mechanism borked one month and the cheque just turned up... nothing in contracts to stipulate HOW payment is made. In fact my rate is in £ but the contract says they can pay in £ or in $ at the current exchange rate.

[Rantor]

Italy is not bringing the Euro crashing down, perhaps because it is not big enough. In fact it's the other way round, Italy is the Euro member country with the strongest sentiment in favour of leaving and bringing back their old currency. Presumably the Euro enforces fiscal responsibility, and the Italians don't like that.

The Itallian people don't like it because they (possibly correctly) associated it with a sudden decline in purchasing power.

They could find themselves in the position of having to bail out of the euro to let their currency devalue. Its what all governments used to do when their economies were chronically uncompetitive and the single currency stops that. We, one the other hand, can still have a 'the pound in your pocket....' address from GB at any moment.

Aren't there anecdotal tales of Germans refusing to take euro notes printed outside of Germany?

[BlasterBates]

The only country in the world where house prices have risen further, private debt was higher (per capita) is Iceland (not the USA) !! I rest my case.

Italy does have high public debt, but it doesn't have a housing bubble or a broken banking system.

[expat]

How do they feel about Italy then?

Italy is not bringing the Euro crashing down, perhaps because it is not big enough. In fact it's the other way round, Italy is the Euro member country with the strongest sentiment in favour of leaving and bringing back their old currency. Presumably the Euro enforces fiscal responsibility, and the Italians don't like that.

[Moscow Mule]

I think the Euro zone countries are breathing a sigh of relief that the UK isn't in it, otherwise it might bring the Euro crashing down.

How do they feel about Italy then?

[BlasterBates]

I think the Euro zone countries are breathing a sigh of relief that the UK isn't in it, otherwise it might bring the Euro crashing down.

[ASB]

I had a cheque for ~$10K sent by post from the US... in the 3 weeks it's taken so far to clear, rates have varied between 1.7 & 1.85.

Then you should have negotiated the cheque (dunno who'll do this but Barclays always used to). Basically you sell them the cheque as a negotiable instrument, instant credit at an agreed rate (I used to get interbank 250k -0.25% on FrF). In the event of the cheque not clearing (usually some time later of course) then it debited back (at the rate at the time of course).

[rootsnall]

I just can't figure out whether there is any 'real' reason for the strength of the pound to increase now - it might just be a blip I suppose.

The reason could be that the Euro block as a whole are more stuffed than we are. There are some real potential basket cases in there and a good chance the Euro may not survive this slump if things get difficult.