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Author Topic: Strong pound  (Read 1175 times)

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Offline Christopher McCandless

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Re: Strong pound
« Reply #15 on: August 27, 2007, 04:42:07 AM »
You Brittons had the right idea by not going to the Euro. ;D
Can't agree with this one at all.  Regional currency union has real economic benefits (ask much of the British financial community) and is not just a stealth tactic to decrease sovereignty in the EU's favour.  Besides, a strong national currency is a curse as much as a blessing.  Historically, an over-strong pound has led to disaster for the British economy; among other things, it decreases investment (foreign and domestic) and makes it difficult to export anything, including services.

Anyroad, enjoy the holiday trips!  Definitely a good time for 'em (and a lousy time for me to be planning a research trip to Europe...).
It has stacks of disadvantages too, such as the ECB having control over intrest rates and other things. Asides, the pound has done us better so far.

Offline morthaur

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Re: Strong pound
« Reply #16 on: August 27, 2007, 05:57:36 AM »
It has stacks of disadvantages too, such as the ECB having control over intrest rates and other things.
They seem to be doing a fair job with the euro, tho'.  It's no surprise they chose German bankers to manage it, after all!   :laugh:  Interest rates threaten to get me off on a rant/tangent about the ridiculous choices made in America in recent years... so I'll shut up now!

Asides, the pound has done us better so far.
Perhaps; but I think Britain's present economic strength has a lot more to do with liberal reforms in the market than with the currency.  Not to say the pound has not been managed remarkably well, mind you; no surprise it was a popular foreign reserve choice for so long.  Anyroad.......

Offline Walkie

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Re: Strong pound
« Reply #17 on: August 27, 2007, 06:44:58 AM »
I've heard of people flying out to the States, just to go on shopping trips, and saving much more than the cost of their air-fare. Easy to believe. When I've compared prices with American friends, it seems  most goods cost twice in Britain as over there

Of course, it's not much use if your disposable income is about zero, nearly all your money goes on food and rent, and you can't afford to go on holiday. Too many Brits are in that position. But at least we're not damaging the environment so much. I've heard that a lot of the Poles are exploiting the situation by living cheaply, in overcrowded conditions (and/or working  insanely long hours) and sending money to their families back in Poland, where it's worth more. I don't know how true that is, but it makes a lot of sense. I don't see any sense in coming to Britain just to work for a minimum wage, otherwise (It's iimpossible to support a famiily on minimum wage, unless you work a lot of overtime, or else claim top-up benefits). But one upshot is that it's harder than ever for a native Brit to get out of the "poverty trap";  hence the resentment against Polish immigrants. That said, in my exprience, most Brits acknowledge that they'd do the same. It's more frustration with the Government than resentment

Another problem with the "strong pound" is that British industry can't compete with foreign industries, where wages are lower; and the gap between Briish and foreign wages can only narrowed so far, because the workers here need a higher wage, just to meet the basic cost of living. Again, that keeps wages low, and increases unemployment.

I'm no economist (far from it) but if you rub shoulders with a lot of the poorer Brits (as I do) the negative effects are blindingly obvious. I suppose we could sum it up as "The rich get richer, and the poor get poorer" (I've heard that the gap between rich and poor here is higher, now, than in the Middle Ages. I dunno, but  I find that credible.)

Cheap holidays?  Bleh. Not much of consolation.

~Walkie
« Last Edit: August 27, 2007, 06:46:56 AM by DrunkardsWalk »

Offline Christopher McCandless

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Re: Strong pound
« Reply #18 on: August 27, 2007, 06:47:24 AM »
It has stacks of disadvantages too, such as the ECB having control over intrest rates and other things.
They seem to be doing a fair job with the euro, tho'.  It's no surprise they chose German bankers to manage it, after all!   :laugh:  Interest rates threaten to get me off on a rant/tangent about the ridiculous choices made in America in recent years... so I'll shut up now!

Asides, the pound has done us better so far.
Perhaps; but I think Britain's present economic strength has a lot more to do with liberal reforms in the market than with the currency.  Not to say the pound has not been managed remarkably well, mind you; no surprise it was a popular foreign reserve choice for so long.  Anyroad.......
The problem with the ECB is it is set to general European intrests, rather than the UKs. Also there is a set of economic rules that come with joining the euro I believe. The main reason we had problems before Brown was that intrest rates were politicised, but for 10 years now they have not been.

Offline enronh

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Re: Strong pound
« Reply #19 on: August 31, 2007, 08:01:35 PM »
blah bla.



« Last Edit: June 23, 2010, 11:46:35 AM by enronhubbard »

Offline AlCapone

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Re: Strong pound
« Reply #20 on: September 01, 2007, 10:27:42 AM »
Not really. Perhaps if we go to Ireland, yes.

The Euro is really their loss, our gain.
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