Thread: Pound hits new low against euro

A weak pound is exactly what the UK needs to aid recovery.

Cheaper exports, more expensive imports, less foreign travel, lots of Brits abandoning second homes overseas etc.

I'm not saying that the economy is in good shape - of course it's not.

But a weak pound is not a bad thing from Brown's point of view.

Hahaha it wasn't so long ago that I was reading about how good the pound was and how crappy the dollar was. The pound is worth nearly the same as the euro now. The almighty dollar will rise again!!

I think its more in hope than expectation that the US$ will rise Mike , especially with its economy going down the tubes

good.

serves the arrogant knuts right.

should have joined the euro and not so much worried about the fat content of a sausage or the redness of a tomato.

got it coming.

Originally Posted by wanghunghigh

I think that was an Eu diktat, actually.

i haven't the first idea what you mean.

enlighten me.

repelled by your avatar.

I decided a while back that forum grammar needn't include punctuation or capitalisation, but bad spelling is krap.

Interesting article here...

The most clear benefits of an independent sterling

John Hurley, the dormouse who works as governor of Ireland's Central Bank, suddenly woke up today to insist that the benefits to Ireland of being in the euro are 'most clear.' He didn't exactly explain why, but it didn't matter. Nothing he could say would now convince any Irish businessman of the 'clear' benefits of the single currency. Amidst the ruins of the Irish economy -- GDP is expected to shrink by five percent in 2009 --the association representing Ireland's small and medium enterprises has just released a statement saying that the euro's strength against the independent British currency is 'a disaster.'

The pound has dropped against the euro by 17 percent this month, and Irish exporters are dying: Britain, for all Ireland's posing as a 'European' country, remains Ireland's most important trading partner.

What the Irish need to do is devalue their currency; but because they have surrendered their their currency to the euro, they can't.

It is good they are hearing the truth about the disaster from their own businessmen, because the Irish are unlikely to listen to anyone in Britain. Still, they would do well to read the Times this morning. William Rees-Mogg writes that one of the lessons we ought to learn from the turmoils of 1931 is that governments should not defend at all costs an overvalued fixed exchange rate: 'Britain does not now have a fixed exchange rate, although some people still want to join the euro. If we were in the euro, we would probably be arguing about when to leave.'

As David Owen, the chief economist at the German bank Dresdner Kleinwort, said just before Christmas: 'A weaker sterling is just what you need in the current situation. Export margins are going through the roof, and this helps not just manufacturing but also service exports. Profits are holding up surprisingly well.'

All because sterling is an independent currency. Which is why you have to wonder: why is Peter Mandelson working to end that independence, and why is Gordon Brown letting him do it?

Originally Posted by Welshman

As David Owen, the chief economist at the German bank Dresdner Kleinwort, said just before Christmas: 'A weaker sterling is just what you need in the current situation. Export margins are going through the roof, and this helps not just manufacturing but also service exports. Profits are holding up surprisingly well.' All because sterling is an independent currency.'

Wise man.

Which is why you have to wonder: why is Peter Mandelson working to end that independence, and why is Gordon Brown letting him do it?

This is still unsubstantiated, as far as I know.
I think it's just based on Mandy's well known long term enthusiasm for the euro, rather than on any actual 'news'.

..and, of course, lardy seppos.

With 'leejur' outfits, barbed wire hair and game show host teeth.