Europe, Referendum & Brexit (formerly Europe..IN or OUT??)

(14-10-2016 21:13 )wackawoo Wrote:  

(14-10-2016 21:01 )HannahsPet Wrote:  Good discussion on Bloomberg the other day were talking about could the pound ever reach parity with the dollar ie 1 dollar = 1 pound and said if brexit is handled badly then very well could do.

Why would this be a bad thing? As someone completely ignorant of finantial matters I've never understood why the world wants the yankie doller even when it was worth half that of the pound

Yanks will be over here like a shot spending in our shops at that rate.

Imports will be much more expensive (especially luxuries like food and fuel) and inflation will be higher.

http://www.bbc.co.uk/news/business-37652467

Apparently because of brexit Louis Vuitton bags are the cheapest in london than anywhere else in the world

(14-10-2016 21:24 )The Silent Majority Wrote:  Imports will be much more expensive (especially luxuries like food and fuel) and inflation will be higher.

http://www.bbc.co.uk/news/business-37652467

But this is not explaining why, that is, why would something be exactly the same value as a doller be a bad thing.

What your getting when the pound goes down is less for your money and americans would get more for theirs, yes i do get that. It would be swings and round abouts though, as these things are; more on fuel more from tourism. Not to mention most fuel is tax anyway, that may even get reduced.

However, the real question was 'I've never understood why the world wants the yankie doller even when it was worth half that of the pound'.

SO if the pound is worth the EXACTLY the same as a doller, why wouldn't the world want a pound?

OR the other way around, why wouldn't the world want a pound when you could get 1.5 - 2 dollers with them at one time.

Unless you can buy things with dollers in shops in every country rather than exchange for local currency.

You also shouldn't confuse an hypothetical scenario with fact, the two are very different. A supporter of remain who suggest something doesn't not mean it is set in stone it will happen.


The sky as still to fall in, and mass slaughter of the immigrants has not happened.

(14-10-2016 23:09 )wackawoo Wrote:  

(14-10-2016 21:24 )The Silent Majority Wrote:  Imports will be much more expensive (especially luxuries like food and fuel) and inflation will be higher.

http://www.bbc.co.uk/news/business-37652467

But this is not explaining why, that is, why would something be exactly the same value as a doller be a bad thing.

The UK economy is not geared to the £ having parity with the $

(14-10-2016 23:09 )wackawoo Wrote:  What your getting when the pound goes down is less for your money and americans would get more for theirs, yes i do get that. It would be swings and round abouts though, as these things are; more on fuel more from tourism. Not to mention most fuel is tax anyway, that may even get reduced.

A low £ is good for exporters and bad for importers. Since the UK imports much more than it exports, the overall effect is bad (and a few extra planeloads of American tourists will not change this).

(14-10-2016 23:09 )wackawoo Wrote:  However, the real question was 'I've never understood why the world wants the yankie doller even when it was worth half that of the pound'.

SO if the pound is worth the EXACTLY the same as a doller, why wouldn't the world want a pound?

OR the other way around, why wouldn't the world want a pound when you could get 1.5 - 2 dollers with them at one time.

Unless you can buy things with dollers in shops in every country rather than exchange for local currency.

All major commodities are traded in dollars. This is a fact and it's not going to change, no matter what value the £ is. Nobody is going to buy pounds to go trading on the commodities market because they're only going to have to change it to dollars again anyway. It would be like buying Euros to go shopping in New York.
Currency traders invest where they think they will get the best return. The UK is seen as a more risky investment now, so they're moving their money elsewhere. This is why the £ is falling. That itself means sfa to joe public until it starts to feed through to the shops, which it's now starting to (witness the row yesterday between Unilever and Tesco)

(14-10-2016 23:09 )wackawoo Wrote:  You also shouldn't confuse an hypothetical scenario with fact, the two are very different. A supporter of remain who suggest something doesn't not mean it is set in stone it will happen.

The pound has plummeted. Fact.
Imports are more expensive. Fact
Just because you're in denial, doesn't mean it hasn't happened.

if imports are more expensive" fact."....WHY are the luxury goods cheaper here than anywhere else in the world???

(15-10-2016 05:45 )The Silent Majority Wrote:  The pound has plummeted. Fact.
Imports are more expensive. Fact
Just because you're in denial, doesn't mean it hasn't happened.

What denial am I over? I go to the same shops as you do but being unemployed will feel increase in the cost of living going up much much more than you will.

As for day to day shopping I have yet to see any difference in prices. This includes fuel which i thought would have gone up considerably (it being traded in $), it has gone up may be 2 or 3p, it doesn't seem a couple of years ago it was £1.36p a litre, but most of that price is tax.

I believe there was some profiteering using the brexit as an excuse a while back, but didn't stores ban their goods as a protest? Very Very easy for the unscrupulous to stick prices up and blame brexit. Even I know we are still in the EU with the same rules and regulations and trade deals in place now as the day before the vote.

Of course the pound has plummeted, this was totally expected. However, it's at £1.21 (today) as opposed to £1.50 before brexit, in addition, the pound as fallen very low before, and has recovered.

The only person in denial here is you and the other remainers, in as much as all will be doom and gloom, it being totally impossible that anything good can come from it. Most brexit people seem to think there will be a short term hit until things get sorted out, but the UK will recover and when it does will probaly be the better for it.

Britian will be just like any other country out side of the EU (of which there are only 26/7 in the EU in the world, most of those receiving way more than they are contributing the the EU), the rest of the world, especially America, India, China, australia and so on trade quite happily and independantly, knowing that being in the EU is not critical to their trading, and the thoughts of being told what to do in Brussel would be met with derision.

For neutral people such as myself that didn't vote, I will wait and see.

(15-10-2016 14:26 )cwpussylover Wrote:  if imports are more expensive" fact."....WHY are the luxury goods cheaper here than anywhere else in the world???

When tourists come here to buy luxury goods and take them home that's exporting, not importing.

The fall in the £ has made everything cheaper for foreign shoppers, not just luxury goods.

Isn't the £ supposedly at its lowest levels for 165 years or something? Good old Tories bringing back the Victorian Era bit by bit

(15-10-2016 16:34 )wackawoo Wrote:  the rest of the world, especially America, India, China, australia and so on trade quite happily and independantly,

No, they're all members of trading blocs.

if luxury goods are cheaper here than anywhere else in the world why are we paying more than what the tourists pay for them?
And wouldn't Brexit help companies to INVEST in Britain too - and have 'MADE IN UK' proudly stamped on them as the world has always appreciated British craftsmanship?