The Pound is a-sinking

[Lockhouse]

I'm off on holiday to the US in two weeks

[Doggy Styles]

"Stop talking down the pound"

GB, 2008

[d000hg]

"A weak pound is the sign of a weak economy, and a weak economy is the sign of a weak government."

Gordon Brown, 1992

"Stop talking down the pound"

GB, 2008

[Gordon Brown]

"A weak pound is the sign of a weak economy, and a weak economy is the sign of a weak government."

Gordon Brown, 1992

Tony told me to say that.

[Doggy Styles]

"A weak pound is the sign of a weak economy, and a weak economy is the sign of a weak government."

Gordon Brown, 1992

[d000hg]

I definitely need to get a $ business account...

[Solidec]

DOOMED!

I hope its transitory though, gonna cash in my US shares if pound hits $1.20 and steadies. £:$ would be insane!

[DimPrawn]

Even if you are an exporter a weak (or dead) pound means the raw materials and your energy costs (imported) are much much higher.

If you take copper and steel for example and produce widgets for export, the cost of the raw materials and the energy to produce the widget is going to be very costly.

[expat]

I think this has been discussed quite extensively but I believe the general argument is that since UK is a net importer of goods, how can the devaluation of sterling be as good thing.

To persuade us to stop buying so many imported goods?

[sunnysan]

Good/Bad

Isn't a sinking pound a good thing rather than a bad thing?

I think this has been discussed quite extensively but I believe the general argument is that since UK is a net importer of goods, how can the devaluation of sterling be as good thing.

[TimberWolf]

I think so. It goes something like this:

1. Debt
2. Devalue
3. Inflate
4. Recover

That's over about 5 year period. Best case.

I wish I could remember more from O level economics now. It seemed carp at the time but I suspect was quite sensible now compared to current economic theory, which goes:

1. Boom
2. Goto 1
3. How the heck did we get here. Goto 1!
4. Confused. Goto 1. ffs
5. Feck
6. Here be dragons

[Gonzo]

Isn't a sinking pound a good thing rather than a bad thing?

It makes exports more price competitive internationally, and that can only be a good thing.

That is assuming the country still produces anything for export that is.

It makes imports more expensive and so that would push up prices and inflation, and that is a bad thing.

That is assuming that people still have any money left to buy imports at all that is.

[ace00]

Isn't a sinking pound a good thing rather than a bad thing?

I think so. It goes something like this:

1. Debt
2. Devalue
3. Inflate
4. Recover

That's over about 5 year period. Best case.

[BrilloPad]

Isn't a sinking pound a good thing rather than a bad thing?

[SantaClaus]

Abandon ship, abandon ship

New Liebour sheep voters, repent.

We could see GBPUSD at the year 2001 lows of 1.3680 shortly, then next stop is 1.3380

The BOE printing money has diluted the value of the currency and scared investors away from the UK.

Bye Gordon, it was (not) nice knowing you!