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£ slumps 10% as Boris directly leads to inflation

The £ has slumped to new lows.
https://www.independent.co.uk/news/business/news/pound-value-brexit-no-deal-us-dollar-euro-boris-johnson-sterling-latest-a9025076.html

This morning, airport currency exchangers in the UK are offering £1 for $1. Never happened before.

Experts say that this has put 1% on inflation and the price of just about everything in the shops is going to rise as a result.

And this is just the first few days of Boris's new Hard Brexit government. :afraid:

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We better get used to it.
Yes, it will be worse after the planned Hard Brexit. Inflation will rocket and many goods will be unavailable.
Original post by XOR_
We better get used to it.

This, a sign of things to come.

All brexiteers were warned of this, warned of the hit brexit would have on our economy. Although they like to say “well after we voted leave nothing happened”, yeah, that’s because we didn’t leave. Boris become PM, days later pound plummets, as the chance of a no deal brexit increases, coincidence, I think not. Brexiteers, when will they learn.
Original post by imlikeahermit
This, a sign of things to come.

All brexiteers were warned of this, warned of the hit brexit would have on our economy. Although they like to say “well after we voted leave nothing happened”, yeah, that’s because we didn’t leave. Boris become PM, days later pound plummets, as the chance of a no deal brexit increases, coincidence, I think not. Brexiteers, when will they learn.

Yes, it's always been the case that you have to get to a Hard Brexit to feel the effects of a Hard Brexit - as long as we were (apparently) negotiating towards a deal, the markets looked favourably on the outcomes. Now that it's clear that the Johnson government is determined to bring about an HB, the markets are reacting accordingly. It's only just begun - next we will have capital flight and the large scale emigration of business.
@Fullofsurprises I am an EU citizen living in the UK, I've studied here at universities but I don't mind being even thrown across the English Channel or straight into the waters because, look on the bright side of this premiership, the memes will be golden 😁
Original post by RomainNeedsHelp
@Fullofsurprises I am an EU citizen living in the UK, I've studied here at universities but I don't mind being even thrown across the English Channel or straight into the waters because, look on the bright side of this premiership, the memes will be golden 😁

A significant contribution to the economic and political debate, thanks for your point.
Original post by Fullofsurprises
A significant contribution to the economic and political debate, thanks for your point.

Haha I'm sorry. Yes you are totally right about 1 GBP = 1 USD being unprecedented, I was surprised as well. Inflation is to be expected.
Original post by RomainNeedsHelp
Haha I'm sorry. Yes you are totally right about 1 GBP = 1 USD being unprecedented, I was surprised as well. Inflation is to be expected.

Hee hee, I couldn't resist.

Apparently the £ is at a 32-year low right now. The last time it was this bad was during the Black Friday crash which doomed the John Major government.
Reply 9
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Quady
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As basically as scary as 1985 :O
Reply 10
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Original post by Fullofsurprises
Hee hee, I couldn't resist.

Apparently the £ is at a 32-year low right now. The last time it was this bad was during the Black Friday crash which doomed the John Major government.

Except 2017 when it was lower?
:hahaha: Brexit you bucket of cat poo

:nyan: + :poo:
Reduction in the pound is associated with the uncertainty surrounding Brexit. It is not a direct reflection on the quality of BoJo.
Ok, as someone who supports Brexit that is making me pretty concerned. I really am starting to look back if I supported the right side
Very good news for students wanting to study in the UK, companies wanting to take over UK targets, anyone paid in foreign currency and tourists.
I wouldnt blame it solely on Boris as anyone with a brain can see No Deal Brexit was highly likely. It is annoying watching the price of imports rise so quickly though.

I dont think the rate at exchange bureaus is a fair comparison as their rates are always very poor. It is about £1=$1.20 at the moment.
That's quite an interesting one "as Boris directly leads to inflation"

In reality it's a case of the city finally realising that they aren't going to get their way on Brexit and so their pessimism has gone into overdrive
The UK economy was in Shambles then, it's much better now. Also that was the time when the Fed raised interest rates to 12% to stop inflation and forced the US into recession to bail out banks. It will likely go to £1 to € parity... Then head to $1.10

The real question is how the UK keeps price stability in food, with a no deal. This could get really nasty.

The UK will probably need to tumble into a recession to correct prices. I'm not sure the BOE could stop it. If they have to raise rates to stop inflation the UK economy really would suffer. But if rent prices and energy costs rise i guess the source of inflation will have to be assessed. The most important aspect will be food prices people could actually go hungry at an alarming rate... If stocks can't be replenished due to lost EU food. Obviously the most impoverished will really suffer which could cause social unrest. Biggest risk, most riots in history have started over food.

Supposedly the strategy is to call the EU's bluff and make them come to the table, but the EU is more self contained so i don't know who wins in that game of chicken.

Personally i don't mind EU to £ parity as it makes my rent in the UK cheaper, as i earn in euros...wouldn't mind since im already in my contract for final year.. Actually would be nice and save me loads. As even student digs in cluster flats in Nottingham cost £4,200!
Original post by Jammy Duel
That's quite an interesting one "as Boris directly leads to inflation"

In reality it's a case of the city finally realising that they aren't going to get their way on Brexit and so their pessimism has gone into overdrive

The city doesn't make the market for the £ alone the wider (global) currency market does.

Though oddly that rally in the FTSE yesterday was strong... It will push money into shares.

Very odd phenomenon but it makes perfect sense, £ falls off a cliff investors sell bonds quickly and try to get into firm's with export exposure.
Original post by The RAR
Ok, as someone who supports Brexit that is making me pretty concerned. I really am starting to look back if I supported the right side

It’s about time people like you woke up to the reality of the situation.
The £ might comeback... The only thing that's really disheartening is wages simply are soooooo low even in professional jobs... Only the lucky few make more than £50,000 so how do wages rise to reflect the rapid loss in value.. They simply don't won't fast enough... But maybe this is good, maybe UK wages will finally rise rapidly. Then the £ can churn higher one day and living standards will rise but that's a very long term view.

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