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Pound slumps to all-time low against dollar


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12 hours ago, RayC said:

' Afternoon/ ' Evening Trans, I was wondering where you were? Been anywhere nice?

Good morning Raymond, no, just battling the elements here, but things have quietened down a bit now, so fingers crossed.....😋

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2 hours ago, Advocate said:

Brexit has exposed the weakness of the UK economy.

 

The GBP has long been over-valued.

 

Financial experts have been quoted as saying the UK produces less than it consumes and pays for that by borrowing from foreigners.

 

Last century the GBP was worth as much as 5 x USD. Now its a paltry 1 x and falling.

 

The UK economy is devasted since Brexit and the GBP has been declining since the end of the North Sea oil and gas boom.

 

Being designated the "worst performing economy in the OECD" doesn't help.

 

"To Mr. Goldin, the pound’s journey indicates a decline in economic and political influence that accelerated when Britain voted to leave the European Union in 2016. In many respects, Britain already has the worst performing economy, aside from Russia, of the 38-member Organization for Economic Cooperation and Development.

 

https://www.nytimes.com/2022/09/28/business/economy/uk-pound-history.html

 

“It’s just a question of time before it falls out of the top 10 economies in the world,” Mr. Goldin said. Britain ranks sixth, having been surpassed by India.

Eswar Prasad, an economist at Cornell University, said this latest plunge had delivered a bracing blow to Britain’s standing. A series of “self-inflicted wounds,” including Brexit and the government’s latest spending plan, have accelerated the pound’s slide and further endangered London’s status as a global financial center. "

Blame Brexit lol, never miss a chance do they?.

 

Do you think it's just the UK  to having a problem? Germany to fall into recession as global economic outlooks darkens, OECD predicts

 

 

https://www.euronews.com/my-europe/2022/09/26/russia-and-germany-to-fall-into-recession-as-global-economic-outlooks-darkens-oecd-predict

 

"The study paints a bleak picture of the world economy: business confidence, disposable incomes and household expenditure all plummet while the costs of fuels, food and transportation surge"

 

The UK has always been in a different cycle to the EU.

 

"The PMI surveys signal that the euro area is entering recession earlier than we previously thought, led by its largest economy Germany, and we now see the euro area 'enjoying' a longer, three quarter recession," said Peter Schaffrik at the Royal Bank of Canada.

 

https://www.reuters.com/markets/europe/europe-heading-recession-cost-living-crisis-deepens-2022-09-05/

 

Let's see what happens when the currency traders turn their attention to the Euro, at least the UK has been pro-active in trying to find a solution

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2 minutes ago, Advocate said:

Out of the frying pan into the fire is not a solution.

 

The UK has three main problems which are exacerbated by Brexit:

 

1. It is not united:

2. Ireland; and

3. Scotland

 

That's without other drains on its economy and issues of morals and hypocrisy like the Falklands and Gibraltar.

 

The directional heading of the UK is toward third world status and probably becoming a recipient of donations from India and other third world countries.

 

Is it now time for Australia to be sending tins of lard to the UK as was done during WW2.

The Pound exchange rate doesn't effect people living in the U.K, doesn't matter if its 10 $ to the Pound or 1 cent 

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Just now, Mac Mickmanus said:

The Pound exchange rate doesn't effect people living in the U.K, doesn't matter if its 10 $ to the Pound or 1 cent 

Oil and gas is paid for in US Dollars.

 

Imports are paid in the currency of the nation selling them.

 

So cost of energy more expensive.

Imported foods more expensive.

Imported goods more expensive.

 

Snd that’s before we get to increased national debt payments forcing cuts in government spending.

 

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8 minutes ago, Chomper Higgot said:

Oil and gas is paid for in US Dollars.

 

Imports are paid in the currency of the nation selling them.

 

So cost of energy more expensive.

Imported foods more expensive.

Imported goods more expensive.

 

Snd that’s before we get to increased national debt payments forcing cuts in government spending.

 

Those prices are set years ahead of time in the futures and options markets , so the Pound exchange rate isn't noticeable on the street  compared to Brits abroad who need to exchange Pound to Baht 

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11 minutes ago, Chomper Higgot said:

Oil and gas is paid for in US Dollars.

 

Imports are paid in the currency of the nation selling them.

 

So cost of energy more expensive.

Imported foods more expensive.

Imported goods more expensive.

 

Snd that’s before we get to increased national debt payments forcing cuts in government spending.

 

Import/export bills are settled in USD, unless a currency swap is in place, that's the way it is globally.

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11 minutes ago, Chomper Higgot said:

Oil and gas is paid for in US Dollars.

 

Imports are paid in the currency of the nation selling them.

 

So cost of energy more expensive.

Imported foods more expensive.

Imported goods more expensive.

 

Snd that’s before we get to increased national debt payments forcing cuts in government spending.

 

May I ask you to stop laughing at my serious posts ? I have Kwasaki in another thread who laughs at all my posts and its getting rather annoying, thanks 

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20 minutes ago, Mac Mickmanus said:

Those prices are set years ahead of time in the futures and options markets , so the Pound exchange rate isn't noticeable on the street  compared to Brits abroad who need to exchange Pound to Baht 

Oh, so Russia invade Ukraine and the price of fuel and energy shot up almost immediately.

 

Supporters of the Tory Government where almost unable to keep up with the speed of it as they blamed inflation on fuel and energy hikes.

 

 

 

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12 minutes ago, nigelforbes said:

Import/export bills are settled in USD, unless a currency swap is in place, that's the way it is globally.

Which doesn’t help the argument that the pound dropping will not impact people in the UK does it?!

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16 minutes ago, Mac Mickmanus said:

May I ask you to stop laughing at my serious posts ? I have Kwasaki in another thread who laughs at all my posts and its getting rather annoying, thanks 

I believe I always make a written response to posts I attach laughing emojis to (you’ve quoted an example above).

 

But if the emoji offends you more than having your arguments torn to pieces, I’ll happily forgo the former in favor of the latter.

 

Now how about addressing the argument I made in response to your post?

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5 minutes ago, Chomper Higgot said:

Oh, so Russia invade Ukraine and the price of fuel and energy <deleted> up almost immediately.

 

Supporters of the Tory Government where almost unable to keep up with the doors of it as they blamed inflation on fuel and energy hikes.

 

That cost and shortage of fuel is due to sanctions on Russia and the UK not receiving Russian gas anymore , its not because of the Pound exchange rate  

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3 minutes ago, Chomper Higgot said:

I believe I always make a written response to posts I attach laughing emojis to (you’ve quoted an example above).

 

But if the emoji offends you more than having your arguments torn to pieces, I’ll happily forgo the former in favor of the latter.

 

Now how about addressing the argument I made in response to your post?

I did that 17 minutes ago and its still there above .

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On 9/26/2022 at 10:27 AM, mrfill said:

I suppose that getting a few percent more on the annuity will help stave off the 15%+ inflation a bit.

Annuity rates are already up 35 per cent on last year and rising, If interest rates hit 6pc I am hoping for an annuity rate of 8 per cent ( age 68,single life) Spring 2023.

I note and respect your point re inflation.   

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15 minutes ago, Mac Mickmanus said:

That cost and shortage of fuel is due to sanctions on Russia and the UK not receiving Russian gas anymore , its not because of the Pound exchange rate  

But you said the price is set years ago.

 

Regardless, the UK receives around 3% of its gas from Russia.

 

So I don’t think the ‘not receiving 3%’ is the cause.

 

Me thinks it’s rapid price hikes, somebody agrees with me:

 

https://heatable.co.uk/boiler-advice/where-does-the-UK-get-its-gas-from?gclid=CjwKCAjwhNWZBhB_EiwAPzlhNrBggJd_NqrR8iADp89hB_BuZqkemKIHxY1cpduduMfwe0q1MC1mfBoCMJkQAvD_BwE

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4 minutes ago, Chomper Higgot said:

But you said the price is set years ago.

 

Regardless, the UK receives around 3% of its gas from Russia.

 

So I don’t think the ‘not receiving 3%’ is the cause.

 

Me thinks it’s rapid price hikes, somebody agrees with me:

 

https://heatable.co.uk/boiler-advice/where-does-the-UK-get-its-gas-from?gclid=CjwKCAjwhNWZBhB_EiwAPzlhNrBggJd_NqrR8iADp89hB_BuZqkemKIHxY1cpduduMfwe0q1MC1mfBoCMJkQAvD_BwE

The energy price rises have been caused by the disruption in supply caused by the Russia/Ukraine war , Russia energy being unavailable has caused shortages across the E.U and prices set years ago when contracts were signed would be valid for new contracts 

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43 minutes ago, Chomper Higgot said:

Which doesn’t help the argument that the pound dropping will not impact people in the UK does it?!

Dunno, I was just pointing out that USD is the trade bill settlement currency internationally, I don't have a horse in your race.

 

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On 9/29/2022 at 3:55 PM, Mac Mickmanus said:

The Pound exchange rate doesn't effect people living in the U.K, doesn't matter if its 10 $ to the Pound or 1 cent 

Yes it does, especially in the UK which consumes more than it produces.

 

It affects the price of imported goods and energy in particular.

 

Boris Johnson led Brexiteers into the wilderness and third world status.

 

Real earnings growth has been mostly negative since Brexit.

 

“The problem isn’t that the U.K. budget was inflationary,” wrote Dario Perkins, a managing director at TS Lombard, a research firm, on Twitter. “It’s that it was moronic.”

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5 minutes ago, Advocate said:

Yes it does, especially in the UK which consumes more than it produces.

 

It affects the price of imported goods and energy in particular.

 

Boris Johnson led Brexiteers into the wilderness and third world status.

 

Real earnings growth has been mostly negative since Brexit.

 

“The problem isn’t that the U.K. budget was inflationary,” wrote Dario Perkins, a managing director at TS Lombard, a research firm, on Twitter. “It’s that it was moronic.”

Name a western country that produces more than it consumes?

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4 minutes ago, BritManToo said:

Name a western country that produces more than it consumes?

In terms of trade balance - Germany, Ireland, Netherlands, Italy and Switzerland

When you say "produce" this has to mean all goods and services - not just food and agriculture

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Yesterday the Bank of England published a

'Guide to Executing Bail-In'. 

Housing chains have collapsed overnight.

Food supplies look perilous.

Don't return to the UK, buy hard assets like gold.

Thank you KamiKwasi Kwarteng.

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10 minutes ago, BritManToo said:

Name a western country that produces more than it consumes?

He can't, but he is obsessed with UK, Brexit, and Johnson knocking, love to know what Utopia he comes from?

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6 minutes ago, SatEng said:

In terms of trade balance - Germany, Ireland, Netherlands, Italy and Switzerland

When you say "produce" this has to mean all goods and services - not just food and agriculture

Paperwork isn't 'produce'.

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12 minutes ago, talahtnut said:

 

Housing chains have collapsed overnight.

 

Due to interest rates increasing , banks have with drawn mortgage offers and will introduce new offers that reflect the interest rate .

   No need for you to panic in Thailand , just a change in procedure in the U.K

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