Reply to: Pound forecast to tumble on 'insane' spending cuts

[alreadypacked]

As the UK imports 99.9999995% of everything it consumes and as everything is purchased in dollars, the knock on effect is huge. Add to it a move 17.5 - 20.0% in VAT on the New Year and the cost of everything, including Thai Tat goes through the roof.

I for one think next year is going to be horrendous, and on that basis I am closing the doors on my retail business in the New Year for good and going to do something less profitable instead.

FTFY

[RichardCranium]

£ falls, cost of imported hops goes up or uk hops cost more because of imported fertilizers, your beer costs more.

We've allowed the once huge UK hop-growing business to die away; we now import most of them from places like Poland.

Hop prices have gone up many-fold this past few years.

[MarillionFan]

My dad owns an organic small holding. Good try, but sorry!

Wow! You must know AtW then?

According to his last girlfriend she said he had a 'small organic holding'

[MayContainNuts]

£ falls, cost of imported hops goes up or uk hops cost more because of imported fertilizers, your beer costs more.

My dad owns an organic small holding. Good try, but sorry!

[Green Mango]

I'm not sure I would notice a drop in currency rates as I don't really travel. As long as the cost of beer is still tuppence a pint I'm happy.

£ falls, cost of imported hops goes up or uk hops cost more because of imported fertilizers, your beer costs more.

[AtW]

I'm not sure I would notice a drop in currency rates as I don't really travel.

Maybe you don't travel, but the food does not teleport itself to those shops, every increase in price of fuel translates in higher prices for everything

[MayContainNuts]

I'm not sure I would notice a drop in currency rates as I don't really travel. As long as the cost of beer is still tuppence a pint I'm happy.

[Green Mango]

The Liberals are getting a bit twitchy about cuts now, as seen on the News tonight. This could do wonders for the £

I think the Liberals will se it through.

Meanwhile governments seem in a race to devalue their currencies with QE even though no one appears to be convinced it is doing any good, but risks currency wars.

[AtW]

The Liberals are getting a bit twitchy about cuts now

They are the weakest link - thanks for 28% CGT Mr Vince Cable - thanks a bunch!

[TimberWolf]

$ is predicted to rally. It certainly has against £ over last few days.

There may some difficult days for the £ again, but at least this country
is tackling it's debt, if we leave it to grow we are just storing up an even
bigger problem for the future.

The Liberals are getting a bit twitchy about cuts now, as seen on the News tonight. This could do wonders for the £

[AtW]

Actually thats where you are talking out of your arse! In the last 18 months my supplier costs have gone up between 20-50% on different lines.

That's exactly my point and thank you for confirming it - 2.5% increase in VAT is nothing compared to generally very high level of inflation. It's not like there is a "tipping point" in this - Govt just wants to take bigger share of sale prices, 2.5% increase is pretty modest actually.

[Green Mango]

Surely the £ and the $ will tumble?

$ is predicted to rally. It certainly has against £ over last few days.

There may some difficult days for the £ again, but at least this country
is tackling it's debt, if we leave it to grow we are just storing up an even
bigger problem for the future.

[MarillionFan]

OMFG, prices will go up by 3%, disaster!!! Buy 3% less tat and it's all even.

The great irony is that if dollar gets weaker then oil goes up, so petrol prices in UK go up, and if dollars goes stronger then due to weakness in GBP petrol prices go up again (or don't drop), ffs.

Actually thats where you are talking out of your arse!

In the last 18 months my supplier costs have gone up between 20-50% on different lines. The same dining table & chairs I was buying 18 months ago for £249 exc vat to sell at £599 inc vat (which I would sell at £499) is now £359 exc vat to retail at £799. Thats based on a US Dollar rate of £1.55. If that changes to £1.40, that table becomes £880. Then add 2.5%, you have a £900 pound dining table and chairs which 18 months ago was £500!!! So people aint gonna buy, businesses will go bust, spiral economics.

There's a large fan over there, it's spinning fast and something large, brown & smelly is heading towards it.

[TimberWolf]

Surely the £ and the $ will tumble?

[AtW]

As the UK imports 99.9999995% of everything it consumes and as everything is purchased in dollars, the knock on effect is huge. Add to it a move 17.5 - 20.0% in VAT on the New Year and the cost of everything, including Thai Tat goes through the roof.

OMFG, prices will go up by 3%, disaster!!! Buy 3% less tat and it's all even.

The great irony is that if dollar gets weaker then oil goes up, so petrol prices in UK go up, and if dollars goes stronger then due to weakness in GBP petrol prices go up again (or don't drop), ffs.