Reply to: rally in equities

[Robinho]

FFS

If your currency devalues, you need to sell goods at a higher value in your native currency in order to make a profit.

Often currency devaluation is a result of mass money printing. The argument for this is that it appears easier to force overinflated wages down (normally the result of a government induced business cycle), after all it's easier to deny a pay-rise than force a pay cut. Really though this is just the result of onerous employment regulations.

There are also several problems with it though. First of all it rewards people and businesses with assets and debt and punishes people with money and savings. Secondly and crucially it once again distorts the pricing mechanism of the economy, normally resulting in another after-bubble.

[AtW]

FFS

Yes?

[Doggy Styles]

No.

Benefit to the country depends on import/export balance - countries like Germany and China benefit because they export more than they import, UK on the other hand is a net importer:

Imports: $639 billion (2011 est.)
Exports: $479.2 billion (2011 est.)

Source: CIA

It will benefit certain successful firms who export, but even this benefit is often muted because same firms have to import some materials that go up in price.

FFS

[AtW]

Either way the UK benefits.

No.

Benefit to the country depends on import/export balance - countries like Germany and China benefit because they export more than they import, UK on the other hand is a net importer:

Imports: $639 billion (2011 est.)
Exports: $479.2 billion (2011 est.)

Source: CIA

It will benefit certain successful firms who export, but even this benefit is often muted because same firms have to import some materials that go up in price.

[Doggy Styles]

No, they don't get cheaper - price is the same as they are sold in their local currencies, but the manufacturer is making better profits.

Either way the UK benefits.

Exports are cheaper in foreign markets if your currency devalues, which makes you more competitive.

Or, if you really are selling at the same price in your market's currency, your manufacturing sector benefits from the extra income.

And that is one of the big advantages of having an independent currency. Which means that Blaster has blasted his own argument in the foot (again) with his original post on this.

[AtW]

Do you not perceive the facts the same way?
That you're an intellectually mediocre binary IT type talking bollux on a forum?

I think he is either intellectually mediocre binary IT type talking bollux on a forum OR not an intellectually mediocre binary IT type talking bollux on a forum.

HTH

[sasguru]

What you perceive to be facts are nothing to do with the discussion in hand however.

Do you not perceive the facts the same way?
That you're an intellectually mediocre binary IT type talking bollux on a forum?

[AtW]

If you say so. You tell me.

I reckon it's 50-50, either I will be or won't be ...

[d000hg]

I can't think of any that I'm not at the moment.
Unless you earn a few million in the future. But money might be about it.
When it comes to looks, sporting ability, women, sense-of-humour, intelligence, fertility and general all-round good-egg-ness, I have you beat.

Your imagination is fertile, I must admit.

[Robinho]

Where's the insults? Merely stating the facts.

What you perceive to be facts are nothing to do with the discussion in hand however.

[sasguru]

1 to 100000 kind of chance?

If you say so. You tell me.

[sasguru]

What's this, yet more insults and no intelligent arguments?

Where's the insults? Merely stating the facts.

[AtW]

Yet there is an outside chance that Atw will become a very rich man.

1 to 100000 kind of chance?

[Robinho]

There's not much difference between you and AtW TBH.
You're both intellectually mediocre IT types who spend all their time on a forum talking bollux about stuff they haven't got a clue about.
Yet there is an outside chance that Atw will become a very rich man.
You on the other hand will almost certianly not, because that's all you do.

What's this, yet more insults and no intelligent arguments?

[sasguru]

Yet you don't understand that debasing the currency is as bad if not worse than a recession.

There's not much difference between you and AtW TBH.
You're both intellectually mediocre IT types who spend all their time on a forum talking bollux about stuff they haven't got a clue about.
Yet there is an outside chance that Atw will become a very rich man.
You on the other hand will almost certianly not, because that's all you do.