The Pound Still Falling?

[Togo]

Against the Euro. Why? When one of the architects of the EU micky mouse money is telling it like it is. Perhaps there is a killing in it for the money sellers.

http://www.msn.com/en-gb/money/topstories/euro-house-of-cards-to-collapse-warns-ecb-prophet/ar-AAj1P8l?li=BBoPOOl&ocid=iehp

[Ellipsis]

Keep going Togo - the more you write, the more you demonstrate how clueless you are ...

For example the idea that British companies don't need to buy anything from abroad, or buy anything from anybody that buys anything from abroad.

I wonder how you post to AnswerBank. Do you use a device made in Great Britain?

[Togo]

^^ Is that an answer or a sulk? Do we sell abroad? Wow big increase in price gained. We even sell tea to China. Haha. Stop stamping your foot and get weaving. But do come back when the pyramid scheme You row implodes overnight.

[Ellipsis]

Yes Togo "we" sell abroad because that's the nature of trade - buying and selling. "We" buy more than we sell and that is how "we" end up running a balance of trade deficit, which was already at a record high but is now increasing because of the currency drop. Is this a problem? Nooooooooooo, how could it be? "We" are alright.

[Togo]

//increasing because of the currency drop//

Missing word being temporary.

[webbo3]

Deutsche bank is ready to collapse.


http://metro.co.uk/2016/09/28/deutsche-bank-on-verge-of-collapse-and-government-isnt-coming-to-help-6158153/


Dave.

[Ellipsis]

Temporary? Phew, thank goodness for that. The vote was only four months ago ... anybody can sustain a 20% price rise for that long. Please, though, just tell me when the exchange rate will get back to the June 22nd levels, since you clearly know that it's only temporary.

[Togo]

//anybody can sustain a 20% price rise for that long. //

Tell us all, what are you paying 20% more for right now. Go on, what have you paid for that cost you 20% more than it did before sanity took back he madhouse?

[Ellipsis]

Specialist cloud-based software (SAAS model), charged on a per-seat license in dollars. No UK equivalent.

By the way, "sanity" has not even started to "take back the madhouse" yet. Not until Article 50 is triggered. In the meantime, we're still members of the EU yet the currency has been trashed for four months so far.

Now, I've answered your question but you avoided mine. Tell me when this "temporary" currency drop will revert to June 22nd levels ...

[EDDIE51]

Togo over 40% of our food is imported, nearly all of that from the EU. It is simply impossible to replace all the imports with home grown produce. Just for a start we would need 40% more farm land to grow the crops on, where is that going to come from? It cuts both ways, we get less cash for our exports but pay more for our imports. The food stuffs we export are not the same things we import so we can't just stop exporting and keep it all for ourselves.

[EDDIE51]

Details of food and drink exports / imports here
https://www.fdf.org.uk/eu-referendum-food-drink-statistics.aspx
Imports of food are growing and were expected to exceed 50% of our total food consumption within a few years. Yet another problem we are not going to solve overnight!

[jno]

I think that's about it, Eddie. A falling pound may be seen as a sensible strategy - many, including Brexiters, will argue that it's been overvalued for years, hence the trade deficit - but what benefits exporters will hurt importers. And importers are most of us - anyone who buys an South African orange in Tesco or a Bangladeshi T-shirt in Primark. The screws are already starting to tighten on the consumer and I don't see this getting better any time soon. I don't think this is temporary, I think it's something the country has to go through.

[EDDIE51]

Yes, as a nation small in land area but large in population we will always need to import food. It matters not if the Euro still exists or countries go back to their old currency's, we still have to buy a large % of our food in foreign currency and the exchange rate will always determine how many £ that costs. Food is going to cost more and we just have to live with it.

[jim360]

The pound's enjoyed a better day today, and I would like to think that after the last two weeks of falls there's no further to go for the time being, unless the BoE cuts interest rates again or something.

All the same, the effects of the pound's slump, whatever they are, aren't likely to be felt for a while I think. Perhaps not at all, if sterling stabilises or is able to climb back up to about $1.30.

[jno]

it wobbles every time someone in the government says "hard Brexit" - and Brexit hasn't even started yet. I think it will be wobbling for quite a while.

[Ellipsis]

It may be worth reviewing what has happened to the exchange rate over the last year:

http://www.xe.com/currencycharts/?from=GBP&to=USD&view=1Y

Note especially before June 23rd versus after June 23rd.

[webbo3]

Looks like there may be trouble with the euro in Italy.

http://www.express.co.uk/finance/city/722547/proof-Italy-is-dumping-doomed-euro-Huge-sums-of-cash-being-pulled-out-of-Rome



Dave.

[EDDIE51]

Jim if the BoE cut interest rates much more you will have to pay them interest to keep your cash for you. What is it at present 0.5% ?