Little England and not-so-Great-Britain

[mommysboy]

I've just been chatting to a mate of mine back in Blighty- The Isle of Wight. He reckons his mom (82) was transported to the polling station along with many pensioners. She was one of the youngest. They had a tea and cake knees up afterwards, sung all the old songs- you know. Lots of flag waving.

She said she didn't want her grandchildren blown up by ISIS. Her daughter( mate's sister) lives on the dole. She's unemployable, always off to the doctors too. Never worked in her life. Lives in a nice house. Has a good life, but constantly complains about the cost of living, etc. Blames economic problems on the Poles, et al.

When my my friend tried to explain about the currency going down, so that prices of imported items would go up 15%, she said it didn't matter to her because she'd be paying at the shops in pounds.

Both voted 'Leave' as I'm sure you guessed.

You have to accept the vote, but this whole event has soured my view of democracy.

* A sad note- one of the party goers has now passed away.

Edited July 10, 2016 by mommysboy

[jpinx]

I've just been chatting to a mate of mine back in Blighty- The Isle of Wight. He reckons his mom (82) was transported to the polling station along with many pensioners. She was one of the youngest. They had a tea and cake knees up afterwards, sung all the old songs- you know. Lots of flag waving.

She said she didn't want her grandchildren blown up by ISIS. Her daughter( mate's sister) lives on the dole. She's unemployable, always off to the doctors too. Never worked in her life. Lives in a nice house. Has a good life, but constantly complains about the cost of living, etc. Blames economic problems on the Poles, et al.

When my my friend tried to explain about the currency going down, so that prices of imported items would go up 15%, she said it didn't matter to her because she'd be paying at the shops in pounds.

Both voted 'Leave' as I'm sure you guessed.

You have to accept the vote, but this whole event has soured my view of democracy.

* A sad note- one of the party goers has now passed away.

She was right -- the pound dropped to a lower level after the 2008 fiasco, but the prices in UK shops did not change significantly

[mommysboy]

I've just been chatting to a mate of mine back in Blighty- The Isle of Wight. He reckons his mom (82) was transported to the polling station along with many pensioners. She was one of the youngest. They had a tea and cake knees up afterwards, sung all the old songs- you know. Lots of flag waving.

She said she didn't want her grandchildren blown up by ISIS. Her daughter( mate's sister) lives on the dole. She's unemployable, always off to the doctors too. Never worked in her life. Lives in a nice house. Has a good life, but constantly complains about the cost of living, etc. Blames economic problems on the Poles, et al.

When my my friend tried to explain about the currency going down, so that prices of imported items would go up 15%, she said it didn't matter to her because she'd be paying at the shops in pounds.

Both voted 'Leave' as I'm sure you guessed.

You have to accept the vote, but this whole event has soured my view of democracy.

* A sad note- one of the party goers has now passed away.

She was right -- the pound dropped to a lower level after the 2008 fiasco, but the prices in UK shops did not change significantly

She made that comment after coming back from the shops and complaining that prices had gone up. !!!

[Wilsonandson]

Andy Murray wins Wimbledon. Little Britain Andy, well done!

[sd44]

Great Britain has always been little, but we are Great because we can fight, explore, do stuff. Back in '39 an unprepared little Britain came to the aid of many against a well prepared war machine attacking little countries. It is in our genes to try....

The EU thing is just Brits showing when enough is enough....

I think you do a great disservice to conveniently forget the large number of Poles, Canadians, Aussies, Kiwis, Free French, and many other nationalities who not only helped defend GB during the Battle of Britain but who "came to the aid of many . . ." until the US joined in.

I started reading from bottom to the top. The first sentence (from the bottom) has always been enough for me. the rest is just icing on the cake so to speak.

To the OP stop winging. The UK people do not see themselves as European but from the UK. Its called patriotism. They are proud of their identity and have seen this dwindled away since joining the EU. This was an opportunity to get our identity back. Now deal with it.

Please do not include Scotland in your UK generalisation.

We are just as patriotic, perhaps even more so, about our country as the English are about theirs but, unlike the English, most of us also consider ourselves European and have been so for hundreds of years.

It is possible to be patriotic without being xenophobic!

Sure, but folk dislike being controlled by Germans, you Scots folk want that then do it and remain under their control...Scots bleat about Westminster and the English but WANT a German master..

Well YOU get on with it, if Germans are in your opinion better than the UK union, do your stuff......

60% of Scotland. Not all of Scotland, as krankie Sturgeon would have everyone believe.

[MissAndry]

When my my friend tried to explain about the currency going down,

Your friend doesn't understand international world pricing.

Most items are sold for the maximum price the local market will stand and they don't vary with exchange rates.

Edited July 11, 2016 by MissAndry

[Orac]

When my my friend tried to explain about the currency going down,

Your friend doesn't understand international world pricing.

Most items are sold for the maximum price the local market will stand and they don't vary with exchange rates.

Only in the short term. Over the longer term many companies cannot cover the exchange rate loss which effectively comes straight out of their profit margin since costs increase according but revenue stays the same.

[MissAndry]

When my my friend tried to explain about the currency going down,

Your friend doesn't understand international world pricing.

Most items are sold for the maximum price the local market will stand and they don't vary with exchange rates.

Only in the short term. Over the longer term many companies cannot cover the exchange rate loss which effectively comes straight out of their profit margin since costs increase according but revenue stays the same.

But many companies are already charging 50-75% more on items sold in the UK and EU, over their US prices.

[ilostmypassword]

I've just been chatting to a mate of mine back in Blighty- The Isle of Wight. He reckons his mom (82) was transported to the polling station along with many pensioners. She was one of the youngest. They had a tea and cake knees up afterwards, sung all the old songs- you know. Lots of flag waving.

She said she didn't want her grandchildren blown up by ISIS. Her daughter( mate's sister) lives on the dole. She's unemployable, always off to the doctors too. Never worked in her life. Lives in a nice house. Has a good life, but constantly complains about the cost of living, etc. Blames economic problems on the Poles, et al.

When my my friend tried to explain about the currency going down, so that prices of imported items would go up 15%, she said it didn't matter to her because she'd be paying at the shops in pounds.

Both voted 'Leave' as I'm sure you guessed.

You have to accept the vote, but this whole event has soured my view of democracy.

* A sad note- one of the party goers has now passed away.

She was right -- the pound dropped to a lower level after the 2008 fiasco, but the prices in UK shops did not change significantly

actually, in 2008 inflation was at its highest point since 1991. And the highest it's been since. As for the shops. Food price inflation was about 13%. That seems pretty significant to me.

[Skywalker69]

When my my friend tried to explain about the currency going down,

Your friend doesn't understand international world pricing.

Most items are sold for the maximum price the local market will stand and they don't vary with exchange rates.

Only in the short term. Over the longer term many companies cannot cover the exchange rate loss which effectively comes straight out of their profit margin since costs increase according but revenue stays the same.

That´s when the layoff´s start.

[Orac]

When my my friend tried to explain about the currency going down,

Your friend doesn't understand international world pricing.

Most items are sold for the maximum price the local market will stand and they don't vary with exchange rates.

Only in the short term. Over the longer term many companies cannot cover the exchange rate loss which effectively comes straight out of their profit margin since costs increase according but revenue stays the same.

But many companies are already charging 50-75% more on items sold in the UK and EU, over their US prices.

Some with very strong branding do but many do not have that luxury and even those that do would have their values adjusted to take into account the adjustment in their profit margins.

The golden days of huge profits being made on goods imported from overseas are long gone as global competition has taken off and many trade barriers have come down. I worked in the supply chain industry for many years and remember some of margins of goods we were moving when i first started that just vanished as time went on - bringing in womens nighties at 6p a piece from the far east which Next knocked out at 2 quid each was one that particularly stuck in my mind.

[ilostmypassword]

The golden days of huge profits being made on goods imported from overseas are long gone as global competition has taken off and many trade barriers have come down. I worked in the supply chain industry for many years and remember some of margins of goods we were moving when i first started that just vanished as time went on - bringing in womens nighties at 6p a piece from the far east which Next knocked out at 2 quid each was one that particularly stuck in my mind.

There is no global competition, corporations control almost everything sold internationally.

As one reporter said, "The EU is a communally owned sock that all the corporations take turns w&^king into"

Tell that to Tesco or Marks & Spencer or well...I'd say you get the picture but I suspect not. You really have no use for facts at all.

Sorry to be a bit 'thick', but I'm not getting your point?

M&S sell in Thailand.

First off, this is the world news section. So my remarks were not aimed at how these corporations are doing in Thailand. Rather, at how they're doing worldwide and especially in the UK. And the answer is not too well. They're being outcompeted. On the other hand, Aldi's is doing rather well.

[mommysboy]

I've just been chatting to a mate of mine back in Blighty- The Isle of Wight. He reckons his mom (82) was transported to the polling station along with many pensioners. She was one of the youngest. They had a tea and cake knees up afterwards, sung all the old songs- you know. Lots of flag waving.

She said she didn't want her grandchildren blown up by ISIS. Her daughter( mate's sister) lives on the dole. She's unemployable, always off to the doctors too. Never worked in her life. Lives in a nice house. Has a good life, but constantly complains about the cost of living, etc. Blames economic problems on the Poles, et al.

When my my friend tried to explain about the currency going down, so that prices of imported items would go up 15%, she said it didn't matter to her because she'd be paying at the shops in pounds.

Both voted 'Leave' as I'm sure you guessed.

You have to accept the vote, but this whole event has soured my view of democracy.

* A sad note- one of the party goers has now passed away.

She was right -- the pound dropped to a lower level after the 2008 fiasco, but the prices in UK shops did not change significantly

The main point is that she was utterly clueless!

The guiding economic principle is that a drop in the value of a currency makes imports more expensive. But you and others have a point imo. If exporters are making a killing they could just take a hit themselves and not increase prices. And this happened after the 2008 drop. Whether they (the exporters who send to UK) are in a position to do so again is doubtful imo.

Affordability is a key issue I agree. There comes a time when suppliers simply have to sell at any price to survive.

[ilostmypassword]

I've just been chatting to a mate of mine back in Blighty- The Isle of Wight. He reckons his mom (82) was transported to the polling station along with many pensioners. She was one of the youngest. They had a tea and cake knees up afterwards, sung all the old songs- you know. Lots of flag waving.

She said she didn't want her grandchildren blown up by ISIS. Her daughter( mate's sister) lives on the dole. She's unemployable, always off to the doctors too. Never worked in her life. Lives in a nice house. Has a good life, but constantly complains about the cost of living, etc. Blames economic problems on the Poles, et al.

When my my friend tried to explain about the currency going down, so that prices of imported items would go up 15%, she said it didn't matter to her because she'd be paying at the shops in pounds.

Both voted 'Leave' as I'm sure you guessed.

You have to accept the vote, but this whole event has soured my view of democracy.

* A sad note- one of the party goers has now passed away.

She was right -- the pound dropped to a lower level after the 2008 fiasco, but the prices in UK shops did not change significantly

The main point is that she was utterly clueless!

The guiding economic principle is that a drop in the value of a currency makes imports more expensive. But you and others have a point imo. If exporters are making a killing they could just take a hit themselves and not increase prices. And this happened after the 2008 drop. Whether they (the exporters who send to UK) are in a position to do so again is doubtful imo.

Affordability is a key issue I agree. There comes a time when suppliers simply have to sell at any price to survive.

But you and others have a point imo. If exporters are making a killing they could just take a hit themselves and not increase prices. And this happened after the 2008 drop.

No, prices didn't stay stable after the 2008 drop. Prices went up. Food prices especially which means the lower your income the more the price rises hurt.

[mommysboy]

Some with very strong branding do but many do not have that luxury and even those that do would have their values adjusted to take into account the adjustment in their profit margins.

The golden days of huge profits being made on goods imported from overseas are long gone as global competition has taken off and many trade barriers have come down. I worked in the supply chain industry for many years and remember some of margins of goods we were moving when i first started that just vanished as time went on - bringing in womens nighties at 6p a piece from the far east which Next knocked out at 2 quid each was one that particularly stuck in my mind.

I can concur with this from personal business experience. Profit margins have plummeted in the last few years.

However, I must admit I am holding off increasing prices for the time being and trying to decrease my costs even further. Long term though, there is no doubt I will have to hike prices.

It may be that prices of goods from China, the ebay/amazon type of stuff, will not rise. This is because the yuan is quietly devaluing again. And there is considerable overcapacity in Chines manufacturing it seems, as well as a global oversupply which has yet to be resolved.

Just my take.

[mommysboy]

The legal angle is back again.

http://www.independent.co.uk/news/uk/politics/brexit-eu-referendum-result-not-legally-binding-lawyers-letter-a7129626.html

In my view the result is binding and the will of ther people must be followed. This is the way democracy works.

But Parliament must be involved to ensure national interest. That is their elected duty- due diligence. Quite apart from this, only Parliament can enact law. That is an absolute. For instance: if no deal, or a bad deal is negotiated, then Parliament has to be able to veto. Surely no one can disagree with the following advice:

"The lawyers add that the Government should organise an independent investigation into the costs and benefits of withdrawal before making plans to exit the bloc."

Nobody could possibly argue with that, could they?

Edited July 11, 2016 by mommysboy

[mommysboy]

In case, like me, you are wondering what the 'Royal Prerogative' means and when it might be used, I think Wikipedia gives a dummie's guide. Basically, I think it is fair to say that the RP allows the PM permission to act without consulting Parliament.

https://en.wikipedia.org/wiki/Royal_prerogative_in_the_United_Kingdom

There are limitations as to when The PM may use the Royal Pregorative:

One very important one which I would guess is very relevant to enactment of Article 50 is statutory superiority:

This principle of statutory superiority was extended in Laker Airway Ltd v Department of Trade, concerning the revocation of a commercial airline operator's licence (December 1976),^[46] where it was confirmed that prerogative powers could not be used to contradict a statutory provision, and that in situations to which the power and the statute both applied, the power could only be used to further the aim of the statute.^[47] Another extension came with R v Secretary of State for the Home Department, ex parte Fire Brigades Union,^[48] where the Court of Appeal held that even if a statute had not yet come into force, the prerogative could not be used to alter this statute to "conflict with Parliament's wishes".^[49]

^{Please understand I am only making this posting for general clarity. I am not a lawyer or an expert academic. If anything posted is wrong I would welcome enlightenment.}

Edited July 11, 2016 by mommysboy

[jpinx]

When my my friend tried to explain about the currency going down,

Your friend doesn't understand international world pricing.

Most items are sold for the maximum price the local market will stand and they don't vary with exchange rates.

Only in the short term. Over the longer term many companies cannot cover the exchange rate loss which effectively comes straight out of their profit margin since costs increase according but revenue stays the same.

But many companies are already charging 50-75% more on items sold in the UK and EU, over their US prices.

There are many reasons for price variations, but the biggest one is "What will the market stand?". As soon as demand tails off a bit the price will come down to boost sales volumes.

[MJP]

Tony Blair has turned profiting from others’ misery into an art form

https://www.theguardian.com/housing-network/2016/mar/18/tony-blair-profiting-housing-crisis-investment-property

José Manuel Barroso to become chairman of Goldman Sachs International

https://www.theguardian.com/business/2016/jul/08/jose-manuel-barroso-to-become-next-head-of-goldman-sachs-international

[MJP]

Germany's Siemens embraces 'Project Optimism' in Brexit U-turn

Europe’s largest industrial combine has vowed to press ahead with investment in Britain despite the vote to leave the EU, backing away deftly from earlier suggestions that Brexit would cause a painful freeze on new activities.

http://www.telegraph.co.uk/business/2016/07/11/germanys-siemens-embraces-project-optimism-in-brexit-u-turn/

This correlates with the decision of the board of one of Europe's biggest firms to increase investment in the UK following Brexit, of which I have first hand knowledge. They were delighted by the referendum result.

[bkkcanuck8]

There are many reasons for price variations, but the biggest one is "What will the market stand?". As soon as demand tails off a bit the price will come down to boost sales volumes.

The biggest one is usually that you are often buying a product from a local distributor who owns the rights to your country (i.e. not UK based) making it a monopoly for that product - which happens in Canada. Even though we in Canada are for the most part the same as the US, I cannot order and have it shipped from across the border because retailers in the US are forbidden to sell into a country they don't own the rights to. I could literally walk across the border (border city) and buy basically the same Denon product for 40% less (after currency issues and taxes) and walk back across the border. The only difference in the product would be packaging (i.e. french and english) and maybe Canadian regulatory approval stamps (even though electrical regulations etc. are effectively harmonized). You are likely getting screwed by your own countrymen

On the other hand I could often go to any computer shop and get computer parts for some of the lowest prices in the world and build my own computer.... (cheaper than Thailand and much farther away) -- so go figure.

[soalbundy]

There are many reasons for price variations, but the biggest one is "What will the market stand?". As soon as demand tails off a bit the price will come down to boost sales volumes.

The biggest one is usually that you are often buying a product from a local distributor who owns the rights to your country (i.e. not UK based) making it a monopoly for that product - which happens in Canada. Even though we in Canada are for the most part the same as the US, I cannot order and have it shipped from across the border because retailers in the US are forbidden to sell into a country they don't own the rights to. I could literally walk across the border (border city) and buy basically the same Denon product for 40% less (after currency issues and taxes) and walk back across the border. The only difference in the product would be packaging (i.e. french and english) and maybe Canadian regulatory approval stamps (even though electrical regulations etc. are effectively harmonized). You are likely getting screwed by your own countrymen

On the other hand I could often go to any computer shop and get computer parts for some of the lowest prices in the world and build my own computer.... (cheaper than Thailand and much farther away) -- so go figure.

money is never patriotic

[ilostmypassword]

Only in the short term. Over the longer term many companies cannot cover the exchange rate loss which effectively comes straight out of their profit margin since costs increase according but revenue stays the same.

But many companies are already charging 50-75% more on items sold in the UK and EU, over their US prices.

There are many reasons for price variations, but the biggest one is "What will the market stand?". As soon as demand tails off a bit the price will come down to boost sales volumes.

And exactly how do you reconcile this assertion with the fact that the last time the pound suffered a sharp devaluation, prices shot up? Particularly for food. A 13% increase.

[GuestHouse]

Germany's Siemens embraces 'Project Optimism' in Brexit U-turn

Europe’s largest industrial combine has vowed to press ahead with investment in Britain despite the vote to leave the EU, backing away deftly from earlier suggestions that Brexit would cause a painful freeze on new activities.

http://www.telegraph.co.uk/business/2016/07/11/germanys-siemens-embraces-project-optimism-in-brexit-u-turn/

This correlates with the decision of the board of one of Europe's biggest firms to increase investment in the UK following Brexit, of which I have first hand knowledge. They were delighted by the referendum result.

I used to work for a Siemens' company in the UK, their investment in the UK economy is huge and very tightly integrated into the wider Siemens corporation - any investment message from Siemens needs to be understood in its impact on confidence on Siemens (not Siemens' confidence in the UK).

Brexit will take at least 2 years, possibly a decade, might possibly not happen at all.

The announcement from Siemens makes good business sense. For the time being.

But don't hang your hat on it.

[GuestHouse]

Only in the short term. Over the longer term many companies cannot cover the exchange rate loss which effectively comes straight out of their profit margin since costs increase according but revenue stays the same.

But many companies are already charging 50-75% more on items sold in the UK and EU, over their US prices.

There are many reasons for price variations, but the biggest one is "What will the market stand?". As soon as demand tails off a bit the price will come down to boost sales volumes.

And exactly how do you reconcile this assertion with the fact that the last time the pound suffered a sharp devaluation, prices shot up? Particularly for food. A 13% increase.

The argument that prices are fixed by what the market can stand is only true for discretionary purchases - It does not apply to commodities that have an inflexible demand curve

Food and Energy are two examples of inflexible demand curve.

Unfortunately, Brexit Land with its devalued currency does not produce enough food to feed itself or meet its own energy needs with local energy supplies - 50% of Brexit Land's food (almost all of which is the core inflexible demand must have food) and nearly all of Brexit Land's energy is imported.

[ilostmypassword]

But many companies are already charging 50-75% more on items sold in the UK and EU, over their US prices.

There are many reasons for price variations, but the biggest one is "What will the market stand?". As soon as demand tails off a bit the price will come down to boost sales volumes.

And exactly how do you reconcile this assertion with the fact that the last time the pound suffered a sharp devaluation, prices shot up? Particularly for food. A 13% increase.

The argument that prices are fixed by what the market can stand is only true for discretionary purchases - It does not apply to commodities that have an inflexible demand curve

Food and Energy are two examples of inflexible demand curve.

Unfortunately, Brexit Land with its devalued currency does not produce enough food to feed itself or meet its own energy needs with local energy supplies - 50% of Brexit Land's food (almost all of which is the core inflexible demand must have food) and nearly all of Brexit Land's energy is imported.

And even for discretionary purchases, there are certain price points below which a supplier won't go. And buyers will just do without.

[Khun Han]

But many companies are already charging 50-75% more on items sold in the UK and EU, over their US prices.

There are many reasons for price variations, but the biggest one is "What will the market stand?". As soon as demand tails off a bit the price will come down to boost sales volumes.

And exactly how do you reconcile this assertion with the fact that the last time the pound suffered a sharp devaluation, prices shot up? Particularly for food. A 13% increase.

The argument that prices are fixed by what the market can stand is only true for discretionary purchases - It does not apply to commodities that have an inflexible demand curve

Food and Energy are two examples of inflexible demand curve.

Unfortunately, Brexit Land with its devalued currency does not produce enough food to feed itself or meet its own energy needs with local energy supplies - 50% of Brexit Land's food (almost all of which is the core inflexible demand must have food) and nearly all of Brexit Land's energy is imported.

So you're saying that the UK pays an international fixed rate for it's imported power and food then?

Edited July 12, 2016 by Khun Han

[jaidam]

Meanwhile the FTSE is at an 11 month high. We should Brexit more often.

[JAG]

I wonder if TVF will ever post an opinion piece from the other side of this issue.

[GuestHouse]

So you're saying that the UK pays an international fixed rate for it's imported power and food then?

That is exactly what I am not saying.

Comodities with an "Iflexible demand curve" are those that we buy regardless of price, usually the absolute essentials we need to live.

The UK must buy food and energy from overseas and is now doing so with a weakend currency, the result will be inflation in the essential food people need and anything that requires energy to produce or transport.

Guess who will be hardest hit by inflation ?!