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The consequence thread (Brexit)


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And at the same time there's far more to economic performance than the international trading value of the currency. Our exporters have been doing rather well of late, and the remainers have stopped talking about the FTSE250 which was supposedly the big indicator to watch in July.

 

I offer gold as a fixed point to compare the value of our currency. It may not be a completely fixed point, but it's far better than the USD which is another volatile fiat currency with its own life to lead.

 

You offered gold because you don't understand what index represents our economy and it suited your opinion.

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And at the same time there's far more to economic performance than the international trading value of the currency. Our exporters have been doing rather well of late, and the remainers have stopped talking about the FTSE250 which was supposedly the big indicator to watch in July.
A devalued currency devalues everything priced in it. Including stock market shares. Domestic ones an'all.

 

Exporters are doing well in the short term, if they have a low stock turnover and/or had plenty of stockholding on the run up to Brexit. Expect them not to be doing so well in the coming months, if they need to restock materials and components before the GBP climbs back to 'normal' levels. In that context, I remind that the UK is -comfortably- a net importer and has been for quite some time: manufacturing here is mostly low-volume high-end and high-volume finishing/assembling.

My version of xe.com looks wildly different. The pound dropped off a cliff and only started to crawl back up. Look at the last 12 months. What does it tell you?
That unbeliever's argument based on gold stats is not reflected by the €/$ stats (unless the € is also appreciating significantly). Edited by L00b
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You offered gold because you don't understand what index represents our economy and it suited your opinion.

 

I knew it was a mistake to come back to this thread.

 

Wow you caught me. I offered evidence to support my position. That's what we do on here. You never do that I'm sure.

Gold says Sterling is stable. Comparison with the USD says it's diving. Comparison with a spectrum of major currencies will in fact tell you that it's somewhere in between: Falling, but nowhere near as dramatically as the USD comparison would suggest.

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As I recall the advice from Savill's went something like ..A new ring road is nearly completed and many of the derelict warehouses and industrial premises are approved for residential use which will bring prosperity to the area.

I'm sure the flats that are for sale are below £190,000. There are also quite a number that aren't for sale that are valued at rather more. Particularly those with river views and private parking.

 

Cool, you better hope the regeneration wasn't EU supported

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why can they ask for the money back :suspect:

 

No, but if the plug is pulled on the local regeneration that £350k price tag might be off the cards.

 

---------- Post added 10-10-2016 at 19:06 ----------

 

Against the background of completely unnecessary QE, which the BoE decided to implement against all reason, Sterling is holding up reasonably well.

 

Have a look at this:

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

Sterling has been stable against gold since about a week after the referendum.

 

Also this:

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

Same plot for the dollar.

 

Now I have said before that the supposed recent falls in the value of the pound are in fact just rises in the value of the dollar. It's hard to take the above 2 plots as anything other than rather compelling evidence that I was correct to say so.

I expect that the remainers desperately willing the UK to get into economic trouble will have trouble spinning this...

 

What would have happened if the BoE hadn't taken emergency action? I honestly wish they hadn't but what if they hadn't.

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And at the same time there's far more to economic performance than the international trading value of the currency. Our exporters have been doing rather well of late, and the remainers have stopped talking about the FTSE250 which was supposedly the big indicator to watch in July.

 

Stilling talking about it here; its still below its 2015 highest point :hihi:

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Get ready for the impact of the collapse of the pound against the dollar to really start hitting...

 

5p on a litre of petrol by the end of the week.

Inflation rising as a result.

Transport costs going up.

Imported food going up.

Heating costs going up.

 

Just in time for winter...

 

The cold realities of brexit start bite!

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