Sterling falls to new low against the dollar in Asia trade

[stevenl]

THB-GBP.gif

Source: xe.com

That's tough for British people retired in Thailand.

Now do the same chart for THB Vs any other western currency (excluding USD), the pound is doing relatively well.

A the start of WWII the GBP against the Dutch guilder was about 7,5 to 1. During the war it rose to 10,5 to 1, and since then it has slowly declined to now (including the Euro exchange) about 2,5 to 1.

Are your Gilders still legal tender?

Your comment has no bearing on the development of exchange rates.

[goldenbrwn1]

I'm ok with it being around 50 baht to the pound. I really can't see it going down much further than say 44 baht to the pound. To put that into perspective ,that's about 100 pounds sterling less on every thousand pound I spend every month. All that needs to be done is save 100 pounds per month. Bye bye fitness first for the Mrs ( not that she done anything else but take selfies anyway) that's 3000 baht right there. I will cut out the mon morning pi#s ups ,that's another 3000 baht. I'm already up. Simples.....

Everyone needs to stop panicking. And please stop talking about the great era of 70 baht or more to the pound, it really wasn't helping when it was in the 50s let alone now! ....

As I said stop panicking !!!!!!, ahhhhhhahhhhhhhhhahhhhh

Sure, and following that great bit of logic, no matter how far the pound drops to the baht, just stop more spending and start taking notes from those posters who claim they live very nicely on B20k/mo.

Thanks smotherb for appreciating my Spock moment.

[mommysboy]

The domino has already fallen. The markets have already invoked Article 50. Markets hate weak governance. And they hate uncertainty. Actual enactment is now irrelevant.

But this is a smoke screen. The bigger picture is that world markets have been teetering for 8 years now. Globalisation has been failing. The world is mired in debt. The inequality in wealth is obscene.

[nausea]

We're already talking about the good old days, when we were in Europe (I joke).

[SheungWan]

Let's see if Theresa May gets the nod as Tory leader. As a 'remainer' she could then justifiably state she feels the public must have a new say via a fresh election, along with perhaps an attached 'updated' referendum question:

No she couldn't. She's not standing for the leadership as a Remainer. She's standing as a contender for the position of negotiating the Brexit.

That's her declared position at the moment, having kept a very low profile during the in out campaigning.

Of course, would be very convenient if, as the majority of constitutional law experts claim, a vote of parliament is required before the government can act on a referendum. Then she could say that reluctantly she has to abide by that parliamentary vote which would most likely be a large majority to stay. She wouldn't even have to call a general election and could carry on as leader.

Crafty - as a barrel load of monkey's, all of them.

EU have already said that no informal negotiations before article 50 invoked. And no PM is going to do that unless they are very very sure of the legality.

I agree with your post, apart from the last sentance. I'm still hoping that is not true - that a 'leave' politician will have the determination to say 'this was the result of the referendum, and I'm invoking article 50'.

We all live in hope of a politician that will actually deliver on the electorates wishes.....

Its terrible isn't it that none of them never, ever live up to your pristine expectations. Boris and Nigel have buggered off leaving you all alone. Come back!

[MaxYakov]

Yes Right Wing Government always sees the Australian Dollar tank. The few exporters who fund the Right Wing Party benefit while the average 99% of Australians pay higher prices for imports and get stuck within the borders because the $AU isn't worth a cracker. Right Wing Government took over in 2013. Not telling me anything new here.

But my point being,

Almost every country in the world is a financial disaster.

Only Thailand and the USA seem immune from the general currency malaise, and it's not as if there's any sensible reason to be seen.

Pointing to ALL the UK problems as a Brexit voter responsibility just isn't sensible.

What's Australia's excuse, and China, and Russia, and Norway, and Sweden, and Iceland ............

But despite the economic disaster everywhere,

We live at a time of widespread peace, prosperity, no lacks of food or resources, oil didn't run out.

So what's the financial explanation for it all?

Debt. (or cockeyed optimism, hope, obliviousness for the non-financial explanations)

PS: You forgot to mention runaway global warming (i.e. climate change) and deadly terrorist actions and sexual assaults in Europe (i.e. not quite widespread peace) and prosperity but only for the prosperous.

Edited July 6, 2016 by MaxYakov

[Grouse]

Oh oh ......... Schadenfreude alert !!

Here come the remains.

Not at all.

I switched 250,000 GBP TO USD at 1.55. Bit of a killing actually!

So much for scaremongering though and good luck with 360M a week for the NHS. ?

[Grouse]

Let's see if Theresa May gets the nod as Tory leader. As a 'remainer' she could then justifiably state she feels the public must have a new say via a fresh election, along with perhaps an attached 'updated' referendum question:

No she couldn't. She's not standing for the leadership as a Remainer. She's standing as a contender for the position of negotiating the Brexit.

That's her declared position at the moment, having kept a very low profile during the in out campaigning.

Of course, would be very convenient if, as the majority of constitutional law experts claim, a vote of parliament is required before the government can act on a referendum. Then she could say that reluctantly she has to abide by that parliamentary vote which would most likely be a large majority to stay. She wouldn't even have to call a general election and could carry on as leader.

Crafty - as a barrel load of monkey's, all of them.

EU have already said that no informal negotiations before article 50 invoked. And no PM is going to do that unless they are very very sure of the legality.

I agree with your post, apart from the last sentance. I'm still hoping that is not true - that a 'leave' politician will have the determination to say 'this was the result of the referendum, and I'm invoking article 50'.

We all live in hope of a politician that will actually deliver on the electorates wishes.....

Its terrible isn't it that none of them never, ever live up to your pristine expectations. Boris and Nigel have buggered off leaving you all alone. Come back!

Boris was actually pro Brexit. He just wanted to be PM.

That's backed up by Ken Clark who was recorded saying just that.

I told you Gove was a bit odd ( but not as odd as the rump of UKIP Farage leaves behind!

[mommysboy]

What amazes me more than anything is that the people who swung the vote are the people most likely to suffer from leaving EU. I have little doubt UK will prosper after a very sharp recession, but say goodbye to workers rights and the welfare system. Bit of a bummer if the City takes one for the team though. Some people are so dumb, that it becomes impossible to have any sympathy for them. As for the EU, it's best avoided.

Edited July 6, 2016 by mommysboy

[MJP]

Don't believe the hype - a falling pound isn't always bad news

http://www.telegraph.co.uk/business/2016/07/06/dont-believe-the-hype---a-falling-pound-isnt-always-bad-news/

[Grouse]

Don't believe the hype - a falling pound isn't always bad news

http://www.telegraph.co.uk/business/2016/07/06/dont-believe-the-hype---a-falling-pound-isnt-always-bad-news/

You can twist things how you like.

BUT, the bank has been forced to loosen controls to try and soften the landing after this ridiculous Brexit vote. That's why sterling is dropping.

Do you think a 15% weaker pound will be good for the average Brexiteer? I suspect not.

Do you think we can build a successful manufacturing sector on the basis of a weak currency? I suspect productivity and quality trump that and in any case, much assembly is overseas anyway.

Grim times ahead

But, maybe we can get wages so low we can back into coal mining?

Edited July 6, 2016 by Grouse

[MJP]

Don't believe the hype - a falling pound isn't always bad news

http://www.telegraph.co.uk/business/2016/07/06/dont-believe-the-hype---a-falling-pound-isnt-always-bad-news/

You can twist things how you like.

BUT, the bank has been forced to loosen controls to try and soften the landing after this ridiculous Brexit vote. That's why sterling is dropping.

Do you think a 15% weaker pound will be good for the average Brexiteer? I suspect not.

Do you think we can build a successful manufacturing sector on the basis of a weak currency? I suspect productivity and quality trump that and in any case, much assembly is overseas anyway.

Grim times ahead

But, maybe we can get wages so low we can back into coal mining?

It'll be a long hard road, but it was coming anyway.

[pitrevie]

Don't believe the hype - a falling pound isn't always bad news

http://www.telegraph.co.uk/business/2016/07/06/dont-believe-the-hype---a-falling-pound-isnt-always-bad-news/

You can twist things how you like.

BUT, the bank has been forced to loosen controls to try and soften the landing after this ridiculous Brexit vote. That's why sterling is dropping.

Do you think a 15% weaker pound will be good for the average Brexiteer? I suspect not.

Do you think we can build a successful manufacturing sector on the basis of a weak currency? I suspect productivity and quality trump that and in any case, much assembly is overseas anyway.

Grim times ahead

But, maybe we can get wages so low we can back into coal mining?

I agree and it was a myth sold by Boris and Farage. If a weaker currency was the answer then Germany would by now be on its knees and the UK would be an economic power house.

[MJP]

Don't believe the hype - a falling pound isn't always bad news

http://www.telegraph.co.uk/business/2016/07/06/dont-believe-the-hype---a-falling-pound-isnt-always-bad-news/

You can twist things how you like.

BUT, the bank has been forced to loosen controls to try and soften the landing after this ridiculous Brexit vote. That's why sterling is dropping.

Do you think a 15% weaker pound will be good for the average Brexiteer? I suspect not.

Do you think we can build a successful manufacturing sector on the basis of a weak currency? I suspect productivity and quality trump that and in any case, much assembly is overseas anyway.

Grim times ahead

But, maybe we can get wages so low we can back into coal mining?

I agree and it was a myth sold by Boris and Farage. If a weaker currency was the answer then Germany would by now be on its knees and the UK would be an economic power house.

Has Germany not been in the Euro since its inception? The Euro is considered weak compared to the Deutsche Mark, which is the one thing Germany fears the most. A return to the DM would see capital flood into their new (old) currency as it would be seen as a safe haven, ironically resulting in the collapse of the manufacturing export based German economy.

[OMGImInPattaya]

Get ready for a Thailand Brexit

Don't you mean "Brexin"?

[OMGImInPattaya]

I bet there are a good number of Brits due to do an annual extension, based on income, over the next few weeks who are getting very worried now.

Yes, this turn of events will ensnare many I'm afraid; and the alternative of the 800k bank deposit is 20-30% more dear now.

[OMGImInPattaya]

The good old days of 70 bht to the pound are long gone , , RIP GBP.

The last time it was 70 was over 10 years ago and we havent hit the lows of 2013 (44.13)...so cants see where the RIP comes in ?

You have walking around with your eyes shut or your head buried in the sand for the last 10 years at least

Gbp dropped again now at 1.28 usd as at 12.30pm, it may bottom out at 1.10usd , but look on the positive side your exports will go up and so will the pound eventually.

And don't forget the joy of having all the increased American tourists ambling over every nook and cranny of the country ☺

[pitrevie]

Don't believe the hype - a falling pound isn't always bad news

http://www.telegraph.co.uk/business/2016/07/06/dont-believe-the-hype---a-falling-pound-isnt-always-bad-news/

You can twist things how you like.

BUT, the bank has been forced to loosen controls to try and soften the landing after this ridiculous Brexit vote. That's why sterling is dropping.

Do you think a 15% weaker pound will be good for the average Brexiteer? I suspect not.

Do you think we can build a successful manufacturing sector on the basis of a weak currency? I suspect productivity and quality trump that and in any case, much assembly is overseas anyway.

Grim times ahead

But, maybe we can get wages so low we can back into coal mining?

I agree and it was a myth sold by Boris and Farage. If a weaker currency was the answer then Germany would by now be on its knees and the UK would be an economic power house.

Has Germany not been in the Euro since its inception? The Euro is considered weak compared to the Deutsche Mark, which is the one thing Germany fears the most. A return to the DM would see capital flood into their new (old) currency as it would be seen as a safe haven, ironically resulting in the collapse of the manufacturing export based German economy.

What you haven't done is explain why if a weak currency help exports why when Germany was using the DM it became an industrial powerhouse in Europe and a weakening British Pound saw the UK go in the opposite direction. Germany's manufacturing sector is now twice the size of the UK's which is why Germany were able to recover much more quickly from the last recession. "collapse of the manufacturing export based German economy". I see we are still dealing in myths or is that wishful thinking. I think the former boss of ICI Harvey Jones summed it up very well, "Harvey-Jones believed that the combination of Thatcher's free market zealotry and Fortress Britain mentality were killing the country's industrial core. In his 1986 Dimbleby lecture, he remarked: "If we imagine the UK can get by with a bunch of people in smocks showing tourists around medieval castles, we are quite frankly out of our tiny minds." Sounds remarkably like present day thinking.

[ilostmypassword]

You can twist things how you like.

BUT, the bank has been forced to loosen controls to try and soften the landing after this ridiculous Brexit vote. That's why sterling is dropping.

Do you think a 15% weaker pound will be good for the average Brexiteer? I suspect not.

Do you think we can build a successful manufacturing sector on the basis of a weak currency? I suspect productivity and quality trump that and in any case, much assembly is overseas anyway.

Grim times ahead

But, maybe we can get wages so low we can back into coal mining?

I agree and it was a myth sold by Boris and Farage. If a weaker currency was the answer then Germany would by now be on its knees and the UK would be an economic power house.

Has Germany not been in the Euro since its inception? The Euro is considered weak compared to the Deutsche Mark, which is the one thing Germany fears the most. A return to the DM would see capital flood into their new (old) currency as it would be seen as a safe haven, ironically resulting in the collapse of the manufacturing export based German economy.

What you haven't done is explain why if a weak currency help exports why when Germany was using the DM it became an industrial powerhouse in Europe and a weakening British Pound saw the UK go in the opposite direction. Germany's manufacturing sector is now twice the size of the UK's which is why Germany were able to recover much more quickly from the last recession. "collapse of the manufacturing export based German economy". I see we are still dealing in myths or is that wishful thinking. I think the former boss of ICI Harvey Jones summed it up very well, "Harvey-Jones believed that the combination of Thatcher's free market zealotry and Fortress Britain mentality were killing the country's industrial core. In his 1986 Dimbleby lecture, he remarked: "If we imagine the UK can get by with a bunch of people in smocks showing tourists around medieval castles, we are quite frankly out of our tiny minds." Sounds remarkably like present day thinking.

While it's true that are lots of great things about the German system that helps it be an export powerhouse, it's also true that its exports are being highly subsidized by the low value of the Euro in relation to the German economy. This makes it much harder for Euro nations that are in trouble to compete with Germany. If they had their own currencies, ithey would have been massively devalued and given them a competitive boost. Instead, the Euro's value depends on a weighting of the economic health of all of its members.

[puchooay]

The good old days of 70 bht to the pound are long gone , , RIP GBP.

The last time it was 70 was over 10 years ago and we havent hit the lows of 2013 (44.13)...so cants see where the RIP comes in ?

You have walking around with your eyes shut or your head buried in the sand for the last 10 years at least

GBP was over 70 THB in 2008. Remember it well as we finished building our house just before the crash.

[pitrevie]

You can twist things how you like.

BUT, the bank has been forced to loosen controls to try and soften the landing after this ridiculous Brexit vote. That's why sterling is dropping.

Do you think a 15% weaker pound will be good for the average Brexiteer? I suspect not.

Do you think we can build a successful manufacturing sector on the basis of a weak currency? I suspect productivity and quality trump that and in any case, much assembly is overseas anyway.

Grim times ahead

But, maybe we can get wages so low we can back into coal mining?

I agree and it was a myth sold by Boris and Farage. If a weaker currency was the answer then Germany would by now be on its knees and the UK would be an economic power house.

Has Germany not been in the Euro since its inception? The Euro is considered weak compared to the Deutsche Mark, which is the one thing Germany fears the most. A return to the DM would see capital flood into their new (old) currency as it would be seen as a safe haven, ironically resulting in the collapse of the manufacturing export based German economy.

What you haven't done is explain why if a weak currency help exports why when Germany was using the DM it became an industrial powerhouse in Europe and a weakening British Pound saw the UK go in the opposite direction. Germany's manufacturing sector is now twice the size of the UK's which is why Germany were able to recover much more quickly from the last recession. "collapse of the manufacturing export based German economy". I see we are still dealing in myths or is that wishful thinking. I think the former boss of ICI Harvey Jones summed it up very well, "Harvey-Jones believed that the combination of Thatcher's free market zealotry and Fortress Britain mentality were killing the country's industrial core. In his 1986 Dimbleby lecture, he remarked: "If we imagine the UK can get by with a bunch of people in smocks showing tourists around medieval castles, we are quite frankly out of our tiny minds." Sounds remarkably like present day thinking.

While it's true that are lots of great things about the German system that helps it be an export powerhouse, it's also true that its exports are being highly subsidized by the low value of the Euro in relation to the German economy. This makes it much harder for Euro nations that are in trouble to compete with Germany. If they had their own currencies, ithey would have been massively devalued and given them a competitive boost. Instead, the Euro's value depends on a weighting of the economic health of all of its members.

I see once again you dodged answering the question about Germany managing to become the powerhouse of Europe and all the while the DM was rising.

[Pinot]

• Bank Of England have wanted to weaken our currency for a long time so what better reason than the Brexit.
• British pound was going to get weaker no matter what because that's what's required to make our exports cheaper and erode our debt.
• Pound will stabilize and get back to near normal as they stabilize the political situation.

Wow. Yup, that's your Brexit voter. GBP in the toilet, recession on it's way but good on ya, you won.

[returnofthailand]

I'm ok with it being around 50 baht to the pound. I really can't see it going down much further than say 44 baht to the pound. To put that into perspective ,that's about 100 pounds sterling less on every thousand pound I spend every month. All that needs to be done is save 100 pounds per month. Bye bye fitness first for the Mrs ( not that she done anything else but take selfies anyway) that's 3000 baht right there. I will cut out the mon morning pi#s ups ,that's another 3000 baht. I'm already up. Simples.....

Everyone needs to stop panicking. And please stop talking about the great era of 70 baht or more to the pound, it really wasn't helping when it was in the 50s let alone now! ....

As I said stop panicking !!!!!!, ahhhhhhahhhhhhhhhahhhhh

Sure, and following that great bit of logic, no matter how far the pound drops to the baht, just stop more spending and start taking notes from those posters who claim they live very nicely on B20k/mo.

I live very nicely with less 20k. I live in a high rise building facing the sea, I don't need air conditioning and I take cold shower everyday. my last electric monthly bill was 200 baths. I eat fruits and chicken everyday directly from market, I ride a scooter, and I have still plenty of money to spend around if I want.

I spend probably less than 14k. just last month I spent 8k baths all included.

I told you to save money and live cheap.

you will realize than more you save, more you make money and more things you can get , it s just amazingly amazing.!

God created the universe from nothing, it s possible for you too.

[stevenl]

You can twist things how you like.

BUT, the bank has been forced to loosen controls to try and soften the landing after this ridiculous Brexit vote. That's why sterling is dropping.

Do you think a 15% weaker pound will be good for the average Brexiteer? I suspect not.

Do you think we can build a successful manufacturing sector on the basis of a weak currency? I suspect productivity and quality trump that and in any case, much assembly is overseas anyway.

Grim times ahead

But, maybe we can get wages so low we can back into coal mining?

I agree and it was a myth sold by Boris and Farage. If a weaker currency was the answer then Germany would by now be on its knees and the UK would be an economic power house.

Has Germany not been in the Euro since its inception? The Euro is considered weak compared to the Deutsche Mark, which is the one thing Germany fears the most. A return to the DM would see capital flood into their new (old) currency as it would be seen as a safe haven, ironically resulting in the collapse of the manufacturing export based German economy.

What you haven't done is explain why if a weak currency help exports why when Germany was using the DM it became an industrial powerhouse in Europe and a weakening British Pound saw the UK go in the opposite direction. Germany's manufacturing sector is now twice the size of the UK's which is why Germany were able to recover much more quickly from the last recession. "collapse of the manufacturing export based German economy". I see we are still dealing in myths or is that wishful thinking. I think the former boss of ICI Harvey Jones summed it up very well, "Harvey-Jones believed that the combination of Thatcher's free market zealotry and Fortress Britain mentality were killing the country's industrial core. In his 1986 Dimbleby lecture, he remarked: "If we imagine the UK can get by with a bunch of people in smocks showing tourists around medieval castles, we are quite frankly out of our tiny minds." Sounds remarkably like present day thinking.

"a weakening British Pound saw the UK go in the opposite direction"

No, the weakening pound was the result of the UK going in the opposite direction, not the cause. The pound has been weakening for 70 years now because the UK economy has been weakening.

[brexiteer]

• Bank Of England have wanted to weaken our currency for a long time so what better reason than the Brexit.
• British pound was going to get weaker no matter what because that's what's required to make our exports cheaper and erode our debt.
• Pound will stabilize and get back to near normal as they stabilize the political situation.

Wow. Yup, that's your Brexit voter. GBP in the toilet, recession on it's way but good on ya, you won.

Thank you.

Yes we did.

[bkkcanuck8]

You can twist things how you like.

BUT, the bank has been forced to loosen controls to try and soften the landing after this ridiculous Brexit vote. That's why sterling is dropping.

Do you think a 15% weaker pound will be good for the average Brexiteer? I suspect not.

Do you think we can build a successful manufacturing sector on the basis of a weak currency? I suspect productivity and quality trump that and in any case, much assembly is overseas anyway.

Grim times ahead

But, maybe we can get wages so low we can back into coal mining?

I agree and it was a myth sold by Boris and Farage. If a weaker currency was the answer then Germany would by now be on its knees and the UK would be an economic power house.

Has Germany not been in the Euro since its inception? The Euro is considered weak compared to the Deutsche Mark, which is the one thing Germany fears the most. A return to the DM would see capital flood into their new (old) currency as it would be seen as a safe haven, ironically resulting in the collapse of the manufacturing export based German economy.

What you haven't done is explain why if a weak currency help exports why when Germany was using the DM it became an industrial powerhouse in Europe and a weakening British Pound saw the UK go in the opposite direction. Germany's manufacturing sector is now twice the size of the UK's which is why Germany were able to recover much more quickly from the last recession. "collapse of the manufacturing export based German economy". I see we are still dealing in myths or is that wishful thinking. I think the former boss of ICI Harvey Jones summed it up very well, "Harvey-Jones believed that the combination of Thatcher's free market zealotry and Fortress Britain mentality were killing the country's industrial core. In his 1986 Dimbleby lecture, he remarked: "If we imagine the UK can get by with a bunch of people in smocks showing tourists around medieval castles, we are quite frankly out of our tiny minds." Sounds remarkably like present day thinking.

While it's true that are lots of great things about the German system that helps it be an export powerhouse, it's also true that its exports are being highly subsidized by the low value of the Euro in relation to the German economy. This makes it much harder for Euro nations that are in trouble to compete with Germany. If they had their own currencies, ithey would have been massively devalued and given them a competitive boost. Instead, the Euro's value depends on a weighting of the economic health of all of its members.

If it was such an advantage to the Germans .... then would not UK have been in the same "advantageous" position with respect to adopting the Euro??

[pitrevie]

Has Germany not been in the Euro since its inception? The Euro is considered weak compared to the Deutsche Mark, which is the one thing Germany fears the most. A return to the DM would see capital flood into their new (old) currency as it would be seen as a safe haven, ironically resulting in the collapse of the manufacturing export based German economy.

What you haven't done is explain why if a weak currency help exports why when Germany was using the DM it became an industrial powerhouse in Europe and a weakening British Pound saw the UK go in the opposite direction. Germany's manufacturing sector is now twice the size of the UK's which is why Germany were able to recover much more quickly from the last recession. "collapse of the manufacturing export based German economy". I see we are still dealing in myths or is that wishful thinking. I think the former boss of ICI Harvey Jones summed it up very well, "Harvey-Jones believed that the combination of Thatcher's free market zealotry and Fortress Britain mentality were killing the country's industrial core. In his 1986 Dimbleby lecture, he remarked: "If we imagine the UK can get by with a bunch of people in smocks showing tourists around medieval castles, we are quite frankly out of our tiny minds." Sounds remarkably like present day thinking.

"a weakening British Pound saw the UK go in the opposite direction"

No, the weakening pound was the result of the UK going in the opposite direction, not the cause. The pound has been weakening for 70 years now because the UK economy has been weakening.

What I am challenging here is that somehow a weakening of our currency will help. That is why I drew the parallel with Germany who for all those years had a straightening currency and yet became the power house of Europe. We were often told by people like Boris and Farage that a weakening pound would somehow be good for the UK. That sort of oversimplification is supported by many posters here. I then went on to say if that that were the case the UK would be the powerhouse and Germany would be the poor man of Europe. Germany didn't become the powerhouse of Europe because of its strengthening currency or indeed despite it. In fact your posting acknowledges that. The British pound weakening is going to play a very minor part if any at all in the future of the UK economy and the people who pushed that during the referendum debate as being a positive outcome are deluding themselves. Perhaps you need to read my previous posts and in particular the quote from a former industrialist Harvey Jones.

[puck2]

• Bank Of England have wanted to weaken our currency for a long time so what better reason than the Brexit.
• British pound was going to get weaker no matter what because that's what's required to make our exports cheaper and erode our debt.
• Pound will stabilize and get back to near normal as they stabilize the political situation.

Wow. Yup, that's your Brexit voter. GBP in the toilet, recession on it's way but good on ya, you won.

Thank you.

Yes we did.

Perhaps, the Brexiters will gain ......... some experience.

Experience #1:

don't trust your guides!

When the door opens they push you for fighting the problems, whereas they are leaving through the backdoor.

Experience #2:

don't rely on your guides.

They promise and lie so much during their campaign that they have to find some craven excuses for leaving the brexiters alone, knowing they couldn't fulfill what they promised.

Experience #3:

Much talking isn't identically equal to big knowledge.

Johnson, Farage didn't have any concrete and convincing ideas for the time after Brexit.

Experience #4:

Don't believe liars.

For me it's hard to understand that Johnson was a "darling", especially for the English. He has lost his (journalist) job 2 times because of lying. Of course, sometimes it's "unavoidable" for politicians to lie. But if it concerns very serious issues?

I'm afraid that the government of the Brexiters once will knock on the doors of the European Bank in Frankfurt for joining the €

[stevenl]

Has Germany not been in the Euro since its inception? The Euro is considered weak compared to the Deutsche Mark, which is the one thing Germany fears the most. A return to the DM would see capital flood into their new (old) currency as it would be seen as a safe haven, ironically resulting in the collapse of the manufacturing export based German economy.

What you haven't done is explain why if a weak currency help exports why when Germany was using the DM it became an industrial powerhouse in Europe and a weakening British Pound saw the UK go in the opposite direction. Germany's manufacturing sector is now twice the size of the UK's which is why Germany were able to recover much more quickly from the last recession. "collapse of the manufacturing export based German economy". I see we are still dealing in myths or is that wishful thinking. I think the former boss of ICI Harvey Jones summed it up very well, "Harvey-Jones believed that the combination of Thatcher's free market zealotry and Fortress Britain mentality were killing the country's industrial core. In his 1986 Dimbleby lecture, he remarked: "If we imagine the UK can get by with a bunch of people in smocks showing tourists around medieval castles, we are quite frankly out of our tiny minds." Sounds remarkably like present day thinking.

"a weakening British Pound saw the UK go in the opposite direction"

No, the weakening pound was the result of the UK going in the opposite direction, not the cause. The pound has been weakening for 70 years now because the UK economy has been weakening.

What I am challenging here is that somehow a weakening of our currency will help. That is why I drew the parallel with Germany who for all those years had a straightening currency and yet became the power house of Europe. We were often told by people like Boris and Farage that a weakening pound would somehow be good for the UK. That sort of oversimplification is supported by many posters here. I then went on to say if that that were the case the UK would be the powerhouse and Germany would be the poor man of Europe. Germany didn't become the powerhouse of Europe because of its strengthening currency or indeed despite it. In fact your posting acknowledges that. The British pound weakening is going to play a very minor part if any at all in the future of the UK economy and the people who pushed that during the referendum debate as being a positive outcome are deluding themselves. Perhaps you need to read my previous posts and in particular the quote from a former industrialist Harvey Jones.

I don't need to read your previous posts, as I have been following this debate closely and in general agree with you.

My point here, my only point, was that your wording 'a weakening British Pound saw the UK go in the opposite direction' is not correct. The weakening pound was the result of the weak economy, not as your wording states the cause.

[mommysboy]

From the perspective of the German economy, the Euro is undervalued. If it was the 'Geuro' it would likely go up in value. This is partly why German exports are so strong- effectively they have a devalued currency.

Yes a currency devaluation is good for exports, but as another poster pointed out it's not the only factor. No doubt the UK is competitive and should be even more so when worker's rights go. But it is building from a low base regarding manufacturing. The services sector is strong.

Avoiding a hit to the City would be a plus.