Sterling worst performing major currency in the world for 2016
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It's not long term decline, it's shock and volatility. It's a huge movement but it doesn't mean we're doomed. With upcoming cuts to interest rates there will become more demand for investment and sterling, exporting will increase, I'm sure many people are thinking about traveling to the UK now that sterlings exchange rate is representative to its purchasing power so all is not bad, it will readjust but in the meantime there are benefits as well as repercussions
It's been 3 weeks.
Original post by HanSoloLuck
Yeah, I hate to admit it, you are probably right.
I wouldn't exactly call it a win for anyone in the UK though, perhaps one of these fine fellows will meet you or your loved ones in a dark ally and show you what you've won.
I wouldn't exactly call it a win for anyone in the UK though, perhaps one of these fine fellows will meet you or your loved ones in a dark ally and show you what you've won.
More worried about indigenous chavs dependent on state benefits and indoctrinated by the daily mail who have nothing to lose from a criminal record. They will still think twice about the threat of deportation.
Original post by Bill_Gates
More worried about indigenous chavs dependent on state benefits and indoctrinated by the daily mail who have nothing to lose from a criminal record. They will still think twice about the threat of deportation.
So you think that criminality or welfare dependence will fall or remain the same as black populations rise in the UK ?
You do realize that there is a positive correlation between these people and the things you claim to 'worry' about. That even now that crime stats for the ones here is, like ever other country, proportionately much greater. I'm also willing to bet pounds against pennies if we look at the crime stats for these migrants that the threat of deportation doesn't curb this trend, and what immeasurable effect it would have, it would only last until they get a right to stay or until they have children.
Your thought process is illogical, you seem to worry about 'chav' crime because of their skin color, there is a very serious and very real black crime problem that is rampant, blacks are responsible for the majority of violent crime in London despite being a tiny minority. 54% of street crimes, like muggings were committed by blacks in London, 64% of gun crime.
When they enter your area you will notice the difference.
Original post by Sephiroth
Most Brexit voters expected the economy to be worse in the short term. Brexit is a longterm thing. In 5 years time we'll be looking back and thinking Brexit was the best thing to ever happen to the country. Sometimes in life you have to take a hit to go far.
Pray tell why you're positive people will look back on this as a god send?
Original post by Napp
Pray tell why you're positive people will look back on this as a god send?
Because by then we'll have lots of trade deals with major economies like the US, China, South Korea, Japan, Canada, Australia, New Zealand and god knows who else. This will lead to more jobs.
The London bankers will no longer rule the country. I mean who cares if they leave, this time in 2008 the country was begging them to leave.
We'll also see that we were right on the refugee crisis, IE that thousands of terrorists have gotten in and Europe is a more dangerous continent as a result.
We'll come out of this stronger, but **** doesn't happen over night. The near term will be rough, hence my comment on how you sometimes have to take a hit to go further.
Original post by zayn008
It's not long term decline, it's shock and volatility. It's a huge movement but it doesn't mean we're doomed. With upcoming cuts to interest rates there will become more demand for investment and sterling, exporting will increase, I'm sure many people are thinking about traveling to the UK now that sterlings exchange rate is representative to its purchasing power so all is not bad, it will readjust but in the meantime there are benefits as well as repercussions
Lower UK interest rates will surely not support Sterling, they will likely do the opposite. On the plus side i suspect the market has already priced in a 0.25% cut in base rate.
Why do you think lower interest rates would encourage foreign entities to hold deposits in Sterling?
"Depreciation in the exchange rate. If the UK reduce interest rates, it makes it relatively less attractive to save money in the UK (you would get a better rate of return in another country). Therefore there will be less demand for the Pound Sterling causing a fall in its value. A fall in the exchange rate makes UK exports more competitive and imports more expensive. This also helps to increase aggregate demand."
http://www.economicshelp.org/blog/3417/interest-rates/effect-of-lower-interest-rates/
More scaremongering.*
Original post by Sephiroth
Because by then we'll have lots of trade deals with major economies like the US, China, South Korea, Japan, Canada, Australia, New Zealand and god knows who else. This will lead to more jobs.
The London bankers will no longer rule the country. I mean who cares if they leave, this time in 2008 the country was begging them to leave.
We'll also see that we were right on the refugee crisis, IE that thousands of terrorists have gotten in and Europe is a more dangerous continent as a result.
We'll come out of this stronger, but **** doesn't happen over night. The near term will be rough, hence my comment on how you sometimes have to take a hit to go further.
The London bankers will no longer rule the country. I mean who cares if they leave, this time in 2008 the country was begging them to leave.
We'll also see that we were right on the refugee crisis, IE that thousands of terrorists have gotten in and Europe is a more dangerous continent as a result.
We'll come out of this stronger, but **** doesn't happen over night. The near term will be rough, hence my comment on how you sometimes have to take a hit to go further.
Original post by DJKL
Lower UK interest rates will surely not support Sterling, they will likely do the opposite. On the plus side i suspect the market has already priced in a 0.25% cut in base rate.
Why do you think lower interest rates would encourage foreign entities to hold deposits in Sterling?
"Depreciation in the exchange rate. If the UK reduce interest rates, it makes it relatively less attractive to save money in the UK (you would get a better rate of return in another country). Therefore there will be less demand for the Pound Sterling causing a fall in its value. A fall in the exchange rate makes UK exports more competitive and imports more expensive. This also helps to increase aggregate demand."
http://www.economicshelp.org/blog/3417/interest-rates/effect-of-lower-interest-rates/
Why do you think lower interest rates would encourage foreign entities to hold deposits in Sterling?
"Depreciation in the exchange rate. If the UK reduce interest rates, it makes it relatively less attractive to save money in the UK (you would get a better rate of return in another country). Therefore there will be less demand for the Pound Sterling causing a fall in its value. A fall in the exchange rate makes UK exports more competitive and imports more expensive. This also helps to increase aggregate demand."
http://www.economicshelp.org/blog/3417/interest-rates/effect-of-lower-interest-rates/
Arguably, in theory you're absolutely right but a cut from 5% to 1% has different effects of 0.5% to 0.1% since at 0.5% you've lost about 99% of your demand for savings already so that theory is quite inapplicable.
The aim is to maintain those foreign investments & demand. So even if we did play in theory it'd have little effect but like I said this small cut would be aiming to maintain those foreign investors which will lead to more being demanded by foreign buyers due to the low value of Sterling, eventually once we've stabilised our foreign trade this will lead to Sterling picking up again, I could be wrong and there is no strong theory behind it but the potential outcomes I mentioned if they do happen will boost Sterling, whether they happen or not is a different question I guess. The government could also borrow more money and take advantage of the low rate bonds while the government also plans to loosen its fiscal policy all which could boost Sterling.
Might I also add that once we've secured the certainty of those foreign investors and business we've done half the job as most of this is due to uncertainty not an actual shift in our economy, I don't think it'll be anything like 1992. It all comes down to how we negotiate with the EU in the end
Original post by Sephiroth
Because by then we'll have lots of trade deals with major economies like the US, China, South Korea, Japan, Canada, Australia, New Zealand and god knows who else. This will lead to more jobs.
The London bankers will no longer rule the country. I mean who cares if they leave, this time in 2008 the country was begging them to leave.
We'll also see that we were right on the refugee crisis, IE that thousands of terrorists have gotten in and Europe is a more dangerous continent as a result.
We'll come out of this stronger, but **** doesn't happen over night. The near term will be rough, hence my comment on how you sometimes have to take a hit to go further.
The London bankers will no longer rule the country. I mean who cares if they leave, this time in 2008 the country was begging them to leave.
We'll also see that we were right on the refugee crisis, IE that thousands of terrorists have gotten in and Europe is a more dangerous continent as a result.
We'll come out of this stronger, but **** doesn't happen over night. The near term will be rough, hence my comment on how you sometimes have to take a hit to go further.
And then we'll all live happily ever after.
Get real.
Original post by Terry Tibbs
Lol, typical leave voter that has no idea what London bankers actually do or the fact that they contribute to more than 12% of the UK GDP.
I'm pretty sure 50% of 8% is not 12%
https://www.google.co.uk/url?sa=t&source=web&rct=j&url=http://www.parliament.uk/briefing-papers/sn06193.pdf&ved=0ahUKEwiFgL33-e_NAhXHcRQKHeKhCKcQFgghMAE&usg=AFQjCNEZiCnQQfOfYGl83B22ondDPz4_iw&sig2=OCg9mhCWHftnGYr0uL33HQ
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Original post by ODES_PDES
It is a mathematical point I am making about a certain way you can manipulate a graph to make its representations more dramatic than what they really is.
Do not worry too much as it will take too long to explain
Do not worry too much as it will take too long to explain
He either doesn't understand or is wilfully playing dumb.
Remainers were so wed to the scary apocalyptic predictions that I guess many feel they have to massage statistics and make more unsubstantiated claims to paint an image of disaster when no such thing is occurring.
As said, some of us also took a long-term view (god forbid) and so don;t see any sign of market volatility as proof of anything but that markets are prone to tremors.
Certainly I'll take even a few years of slight market uncertainty over the guaranteed looming Euro collapse, bailouts, and massive shock for the European common market.
tl;dr Short termist small-minded vocal Remainers are economically illiterate and uninformed about the EU.
So you believe that absolutely all financial services in the UK are provided by London banks?
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Original post by Jammy Duel
So you believe that absolutely all financial services in the UK are provided by London banks?
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