Pound slumps to all-time low against dollar

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6 hours ago, nigelforbes said:

A currency often declines in value because the current account has gone into deficit, case on point, Thailand

Thatusually happens because of the balance of trade, eg lower exports than imports, something that is indicative of a slowing economy.

First off, just because a country runs a trade deficit, that doesn't mean its economy is in decline. And if its currency declines in relation to others, that doesn't mean that the economy isn't still growing. Whereas if a crtypocurrency is in decline, then it's declining. And its loss is absolute. Not cushioned by being backed up by an actual economy. It's just an asset.

[nigelforbes]

49 minutes ago, placeholder said:

First off, just because a country runs a trade deficit, that doesn't mean its economy is in decline. And if its currency declines in relation to others, that doesn't mean that the economy isn't still growing. Whereas if a crtypocurrency is in decline, then it's declining. And its loss is absolute. Not cushioned by being backed up by an actual economy. It's just an asset.

I agree in respect of crypto., The rest of it we can debate when I get back from my beach hols.

[Mac Mickmanus]

The Pound surges to a three month high against the Dollar 

 

 

 

Pound to Dollar Rate Pushes Fresh Three-Month Best

 

The Pound has rallied to a new three-month best against the Dollar as the major unwind of the U.S. currency sparked by last week's U.S. inflation data release extends.

The Pound to Dollar exchange rate (GBP/USD) is now seen at 1.1880, levels last seen on August 26.

 

https://www.poundsterlinglive.com/usd/17789-pound-to-dollar-rate-pushes-fresh-three-month-best

 

[nigelforbes]

On 11/14/2022 at 7:37 PM, placeholder said:

First off, just because a country runs a trade deficit, that doesn't mean its economy is in decline. And if its currency declines in relation to others, that doesn't mean that the economy isn't still growing. Whereas if a crtypocurrency is in decline, then it's declining. And its loss is absolute. Not cushioned by being backed up by an actual economy. It's just an asset.

Here you go, this was the easiest and simplest explanation I could find:

 

"An economy experiencing growth results in a currency appreciating, and the exchange rate adjusts accordingly. The country with the weakening economy may experience currency depreciation, which also has an effect on the exchange rate".

 

In the case of the Pound: GBP has been in long term decline since the collapse of the Bretton Woods agreement and parity with USD is a real possibility if it is to achieve fair value.

 

 

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1 hour ago, nigelforbes said:

Here you go, this was the easiest and simplest explanation I could find:

 

"An economy experiencing growth results in a currency appreciating, and the exchange rate adjusts accordingly. The country with the weakening economy may experience currency depreciation, which also has an effect on the exchange rate".

 

In the case of the Pound: GBP has been in long term decline since the collapse of the Bretton Woods agreement and parity with USD is a real possibility if it is to achieve fair value.

 

 

 

 

Here's the yearly per capita GDP of the UK from 1992. I used PPP (purchasing power parity) rather than pounds in order to forestall any objections that the decline in the pound's value negated the rise in GDP

https://tradingeconomics.com/united-kingdom/gdp-per-capita-ppp

 

Here is the same statistic for the United States:

https://tradingeconomics.com/united-states/gdp-per-capita-ppp

 

Here's the value of the British pound in respect to the dollar:

https://tradingeconomics.com/gbpusd:cur

It may that in relation to the US economy, that the UK economy hasn't grown quite as quickly, but clearly a decline in value of the pound does not signal an absolute decline in the value of the UK's economy.

 

 

 

 

[nigelforbes]

23 minutes ago, placeholder said:

 

 

Here's the yearly per capita GDP of the UK from 1992. I used PPP (purchasing power parity) rather than pounds in order to forestall any objections that the decline in the pound's value negated the rise in GDP

https://tradingeconomics.com/united-kingdom/gdp-per-capita-ppp

 

Here is the same statistic for the United States:

https://tradingeconomics.com/united-states/gdp-per-capita-ppp

 

Here's the value of the British pound in respect to the dollar:

https://tradingeconomics.com/gbpusd:cur

It may that in relation to the US economy, that the UK economy hasn't grown quite as quickly, but clearly a decline in value of the pound does not signal an absolute decline in the value of the UK's economy.

 

 

 

 

It's the other way round, the economy drives the strength of the currency. As you said, the UK economy has not grown at the same speed or to the same height as the US economy hence the fall in GBP value.

[BritManToo]

Just now, nigelforbes said:

It's the other way round, the economy drives the strength of the currency. As you said, the UK economy has not grown at the same speed or to the same height as the US economy hence the fall in GBP value.

Nah, more to do with interest rates.

US has higher interest rates so all the big boys moved their money to the US.

Obviously that isn't so true with the 3rd world.

 

[placeholder]

1 minute ago, nigelforbes said:

It's the other way round, the economy drives the strength of the currency. As you said, the UK economy has not grown at the same speed or to the same height as the US economy hence the fall in GBP value.

The problem is, your definition says that a country with a weakening economy will suffer a decline in currency value. But the decline is only relative. And as I have repeatedly pointed out, the standard of living of the average UK citizen has grown markedly while the pound has declined. This despite what the moaners claim. Also, if you look at the relationship between GDP per capita growth between the USA and the UK, you'll see that the decline in value of the pound has far exceeded the discrepancy between the USA and the UK's gdp growth. So there is also the issue of money supply which your definition fails to address.

[stevenl]

3 minutes ago, BritManToo said:

Nah, more to do with interest rates.

US has higher interest rates so all the big boys moved their money to the US.

Obviously that isn't so true with the 3rd world.

 

No, it's the economy. Pound has been in decline since WW2 due to declining empire.

[nigelforbes]

2 hours ago, placeholder said:

The problem is, your definition says that a country with a weakening economy will suffer a decline in currency value. But the decline is only relative. And as I have repeatedly pointed out, the standard of living of the average UK citizen has grown markedly while the pound has declined. This despite what the moaners claim. Also, if you look at the relationship between GDP per capita growth between the USA and the UK, you'll see that the decline in value of the pound has far exceeded the discrepancy between the USA and the UK's gdp growth. So there is also the issue of money supply which your definition fails to address.

"The problem is, your definition says that a country with a weakening economy will suffer a decline in currency value".

 

Yes, it will, I don't think I've ever seen examples of where it hasn't, unless the currency has been artificially supported.

 

"But the decline is only relative".

 

What do you mean, relative to what?

 

"And as I have repeatedly pointed out, the standard of living of the average UK citizen has grown markedly while the pound has declined".

 

But this is what we would expect, the pound in your pocket and all that.

 

"So there is also the issue of money supply which your definition fails to address"

 

What do you mean? UK money supply has slowly increased for the past 25 years.

https://tradingeconomics.com/united-kingdom/money-supply-m2#:~:text=Money Supply M2 in the United Kingdom averaged 1350821.33 GBP,Million in December of 1986.

[BritManToo]

2 hours ago, placeholder said:

And as I have repeatedly pointed out, the standard of living of the average UK citizen has grown markedly while the pound has declined.

The standard of living for the average UK citizen has declined since the year 2000 IMHO.

I was only there until 2009, but since then my pals tell me it's only got worse.

 

Obviously the globalists are only interested in connecting the decline with Brexit, but in reality the pushing for globalism/climate change/green energy/multiculturalism is the reason for the decline of western civilisation.

Edited November 18, 2022 by BritManToo

[placeholder]

33 minutes ago, BritManToo said:

The standard of living for the average UK citizen has declined since the year 2000 IMHO.

I was only there until 2009, but since then my pals tell me it's only got worse.

 

Obviously the globalists are only interested in connecting the decline with Brexit, but in reality the pushing for globalism/climate change/green energy/multiculturalism is the reason for the decline of western civilisation.

In othe words, for evidence you have your opinion, your pals' opinion, and your general prejudices. But nothing that would support an actual objective investigation.

[BritManToo]

1 minute ago, placeholder said:

In othe words, for evidence you have your opinion, your pals' opinion, and your general prejudices. But nothing that would support an actual objective investigation.

I changed at 42.7 yesterday and was quite happy with that.

Looking forward to my 10.1% pension increase now.

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3 minutes ago, BritManToo said:

I changed at 42.7 yesterday and was quite happy with that.

Looking forward to my 10.1% pension increase now.

So now you've changed your mind and you think the UK economy is getting stronger? Or did you just want to throw something irrelevant into the mix?

[BritManToo]

5 minutes ago, placeholder said:

So now you've changed your mind and you think the UK economy is getting stronger? Or did you just want to throw something irrelevant into the mix?

 I don't know what's going to happen, and suspect nobody else does either.

As long as I have enough money to live out the rest of my life in comfort (40kbht/month), nothing else really matters to me.

[placeholder]

8 minutes ago, BritManToo said:

 I don't know what's going to happen, and suspect nobody else does either.

As long as I have enough money to live out the rest of my life in comfort (40kbht/month), nothing else really matters to me.

So you were just posting another irrelevancy.

[thaibeachlovers]

On 11/18/2022 at 6:13 PM, BritManToo said:

I changed at 42.7 yesterday and was quite happy with that.

Looking forward to my 10.1% pension increase now.

Don't anticipate too much. Donations of millions of quid to a certain country has to be paid for, among other massive payments ( to rescue the NHS perhaps ), and it may be decided that giving rises to those not living in the UK is no longer sustainable. Brits living abroad are an easy target.

[Mac Mickmanus]

Update : The Pound makes a recovery

'

"Pound Surges Past $1.20 as Fresh Data Add to Dollar Slump"

 

 

https://www.bloomberg.com/news/articles/2022-11-15/pound-surges-past-1-20-as-fresh-data-adds-to-dollar-slump?leadSource=uverify wall

[stevenl]

4 minutes ago, Mac Mickmanus said:

Update : The Pound makes a recovery

'

"Pound Surges Past $1.20 as Fresh Data Add to Dollar Slump"

 

 

https://www.bloomberg.com/news/articles/2022-11-15/pound-surges-past-1-20-as-fresh-data-adds-to-dollar-slump?leadSource=uverify wall

That's old, got any recent updates?

[Mac Mickmanus]

1 minute ago, stevenl said:

That's old, got any recent updates?

Todays rate is $ 1.23 to the Pound