Overall not to good for Britain and Europe, flights are cheap as are holidays and buying there is also cheap.
However look at the effect this is having on the European economy If you can sell to the states at $150.00 and the rate of exchange is 1.50 that means you get back ?100.00 now if it goes to 1.90 then you can still sell at $150.00 but you only get back ?79.00 now that costs jobs. Overall it is better to have higher costs on holidays and a guaranteed paycheque than the other way round.
The argument that it does not affect me is not true, falling European profits effect the stock market and the value of your pension plan falls.
So sweet nothing in it for us in the long run
The US $ , fall Is this a bloody Good thing ?
Re: The US $ , fall Is this a bloody Good thing ?
It's a fuckin dissaster if like me you get paid in dollars and then have to watch it fade away to not a lot when transferring it to pounds.
Re: The US $ , fall Is this a bloody Good thing ?
Good for tourists but shite for British companies who export. Look at Jaguar for example....
XK8, ?50000, @ $1.45 = $72500. @ $1.86 a per Saturday's Telegraph $93000. Fancy being a Jag importer in th USA?
XK8, ?50000, @ $1.45 = $72500. @ $1.86 a per Saturday's Telegraph $93000. Fancy being a Jag importer in th USA?
Re: The US $ , fall Is this a bloody Good thing ?
Think of the thousands of people like Dave, income set constantly in dollars
One of the best examples is British knitwear. Eight years ago factories producing high quality wear ,were closing down in the Borders, the production going to low cost manufacturing countries and the brand name remaining the same, Pringle for example. The industry never recovered. But the companies survived ,shame about the workers though
One of the best examples is British knitwear. Eight years ago factories producing high quality wear ,were closing down in the Borders, the production going to low cost manufacturing countries and the brand name remaining the same, Pringle for example. The industry never recovered. But the companies survived ,shame about the workers though
Jonboy
Re: The US $ , fall Is this a bloody Good thing ?
Hi Bimmer, this argument does not really work, for the following reasons.
In the UK when a person retires their pension fund is equity based, and is liquidated, to purchase an annuity. Now when the stock market is in its cyclical downward phase, then the amount of money raised to purchase the annuity is reduced and so the return on the pension is reduced. Now like that states we have had three years of downward spirals on the stock market, and this has led to people due to retire staying within the workforce for longer, their retirement date being set by the level of the stockmarket, not something most of used wished for.
Turning to the rate of exchange, it has done nothing for the majority, except US tourism, a small part of the US economy, if you look at the S & P index it has recovered, but they jobless figures have not had a noticeable decline and that is for both Non Farm and Farm Payroll.
Now the problem with these cycles is that jobs go from the countries effected and they do not come back, take my example of the border knitwear and if you go back to the 70s/80s the US steel works, look at Bethlehem Steel?s payroll in 1979 and today.
Another example is in London in the last 3 years over 30,000 jobs have gone to low cost centres like India. Those people who have lost their jobs were higher rate taxpayers, and the jobs in the UK, which replaced them, were in the expansion in Call Centre staff and Supermarket expansion, so they did not become part of the jobless statistics. This has led to a reduction of tax revenue and therefore a loss of public services.
Now I know that these exchange rate fluctuations are a bad thing, I cannot offer any alternative solution but hope you understand my argument
In the UK when a person retires their pension fund is equity based, and is liquidated, to purchase an annuity. Now when the stock market is in its cyclical downward phase, then the amount of money raised to purchase the annuity is reduced and so the return on the pension is reduced. Now like that states we have had three years of downward spirals on the stock market, and this has led to people due to retire staying within the workforce for longer, their retirement date being set by the level of the stockmarket, not something most of used wished for.
Turning to the rate of exchange, it has done nothing for the majority, except US tourism, a small part of the US economy, if you look at the S & P index it has recovered, but they jobless figures have not had a noticeable decline and that is for both Non Farm and Farm Payroll.
Now the problem with these cycles is that jobs go from the countries effected and they do not come back, take my example of the border knitwear and if you go back to the 70s/80s the US steel works, look at Bethlehem Steel?s payroll in 1979 and today.
Another example is in London in the last 3 years over 30,000 jobs have gone to low cost centres like India. Those people who have lost their jobs were higher rate taxpayers, and the jobs in the UK, which replaced them, were in the expansion in Call Centre staff and Supermarket expansion, so they did not become part of the jobless statistics. This has led to a reduction of tax revenue and therefore a loss of public services.
Now I know that these exchange rate fluctuations are a bad thing, I cannot offer any alternative solution but hope you understand my argument
Jonboy
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stripeysydney
- Posts: 1254
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Re: The US $ , fall Is this a bloody Good thing ?
Over here in dear old blighty i thought oil was priced in dollars, so how come the price of a gallon has'nt gone down yet!