Reply to: Labour's handling of the economic crisis has been exemplary

[Doggy Styles]

And can someone explain to me why this would be "good" for the economy?

It certainly would be a disaster for exporters.

So holidaymakers get a few extra bucks to spend when they go to the US. Big deal.

Too much is made of the strength of the pound itself.

The exchange rate is working whether it is up or down - it balances or damps the more extreme effects of our economy's strength or weakness.

Ask Ireland and Spain, who are just finding out this wholesome truth.

[PM-Junkie]

And can someone explain to me why this would be "good" for the economy?

It certainly would be a disaster for exporters.

So holidaymakers get a few extra bucks to spend when they go to the US. Big deal.

True...though exchange rate dynamics in the current environment is a VERY complicated subject.

As well as exports, you have imports. We as a nation import lots of raw materials, and if our currency is strong this means our import costs are effectively lower. Traditionally, this has a downward influence on prices and inflation, which in turn increases the buying power of peoples' wage packets and keeps the whole thing ticking along.

However, under current circumstances I prefer a weaker currency to strengthen our exports (which should give a extra kick for what manufacturing we have left) and discourage imports...which hopefully will also give a boost to manufacturing.

Overall though, I prefer the economic advantages of a strong currency. As someone else said (I forget who) "lord, give us a strong currency....but not yet".

[sasguru]

Bugger I go away for the morning and socialist sasguru takes over.
Give over mate, you're not going to convince anyone ..

[Platypus]

Sterling has not recovered to pre-crash levels yet.

And can someone explain to me why this would be "good" for the economy?

It certainly would be a disaster for exporters.

So holidaymakers get a few extra bucks to spend when they go to the US. Big deal.

[BrilloPad]

You are taking the piss, aren't you?

Yes he usually does. Later he will claim there are 3 of him posting and it was one of the other 2.

HTH

[Evil Hangover]

Yes I know el Gordo caused it, but as far as recovering from a mistake is concerned, Labour have done well.
Textbook Keynesian stimulus policies have done the job.
The Tories would probably have tightened everything and made it worse.


HTH

You are taking the piss, aren't you?

Gordo has spunked our cash against the wall with gay abandon, with no concern for the medium term consequences.

He is just desperate that his short term prayer for re-election will be answered. An increasing percentage of the electorate are know so painfully thick that this could still happen.

The recent QE spasms have been mopped up predominantly by whom ? Yes, the flippin Govt. No one else wants out debt and our country credit rating is at risk of a downgrade. This debt mountain is going to becoming increasingly more expensive to service once Interest Rates are raised next year.

This will be required (and imposed by the Bank of England) to stifle the inevitable bout of inflation, whilst simultaneously stifling what little growth prospects there might otherwise have been

UK PLC has been well and truly f***** over the last ten years by these clueless Labour flipwits

[BrilloPad]

Yes I know el Gordo caused it, but as far as recovering from a mistake is concerned, Labour have done well.
Textbook Keynesian stimulus policies have done the job.
The Tories would probably have tightened everything and made it worse.


HTH

Like Maggie did?

No pain no gain.

I still think there is alot of pain to come. We cant just borrow forver : we have to live within our means. Unless you advocate inflating your way out?

[d000hg]

Savers and those without houses are paying the bill instead of borrowers. Can this happy situation last forever?

Well, the ones with money are more able to pay than those in debt so on average it works out. Sucks if you are one of the sensible ones forced to pay of course.

[TimberWolf]

that's talking down the economy...or being realistic...can't do that...the economy is all about confidence after all isn't it? no substance there actually - it's just all like the pr / spin we all know so much about!!!! grrrr!!!

Yep, the last 10 years have been style over substance. Those with style have seen boom years.

[Muttley08]

that's talking down the economy...or being realistic...can't do that...the economy is all about confidence after all isn't it? no substance there actually - it's just all like the pr / spin we all know so much about!!!! grrrr!!!

[TimberWolf]

Perhaps the Tories should be doing a better of job of explaining to the populace how flipped we are for the next 2 generations or so? Or is that unpatriotic?

[Doggy Styles]

Yes I know el Gordo caused it, but as far as recovering from a mistake is concerned, Labour have done well.
Textbook Keynesian stimulus policies have done the job.
The Tories would probably have tightened everything and made it worse.

Very good, sas!

If you are increasing your mortgage debt by between 5% and 10% every year just to pay your day-to-day expenses, would you say you are handling your finances well?

Brown is just putting off the day until after the election, when the Tories will have it dumped in their laps, and it will be worse than if we faced up to it now. Brown has put party politics before the good of the economy.

[Muttley08]

Doesn't matter though - clearly you didn't make the same mistake and have invested your boom money wisely.

I have (well hope so) - sold house 2 yrs ago, in rented still (more annoying than i thought) - still waiting for house prices to drop further - just annoying its being very drawn out

I'm not at the phase of my career where I've got enough to hang up my mouse though - hence annoyed that the whole economy is knackered for a long time yet.

As an aside, we either need to either let capitalism work (and have cyclical behaviour) or just go the whole hog and become socialist (then gordon can meddle until his hearts content).

Read about Labour's attempts to discredit that ex head of the army guy who spoke out against them this morning as well (through expenses etc) - they're just so dim that they think they can get away with it, without people noticing what a bunch of moronic, bitter little people they are....

Anyway, grumpy, rant mode off for now

[milanbenes]

'Do you think the NewLie can pay back the money it has borrowed from the current income - current exp.?

I don't think they can, so something has to change.'



yes, that'll be inflation

Milan.

[TimberWolf]

It's all very well having 20/20 hindsight, I want to know what to do now. Gaw'd, in hindsight, 1997 UK was such a nice place.