Sinking your currency is not merely marginally different than having a floating currency.Originally Posted by RandBlade
Sinking your currency is not merely marginally different than having a floating currency.
Congratulations America
I'm not talking about sinking our currency. The pound/euro exchange rate is still higher than it was for most of late 2008 to late 2013.
What I mean is that you want gradual adjustments, not 10% drops in a matter of days.
Congratulations America
A one off step change especially if it is in response to a one off shock can be safer than perpetual decline. A 2% fall every year for five years may be more gradual than an overnight shock but if it is permanently like that then it isn't very healthy.
We will see, the scary thing for a Brit should be is that the BoE pretty much has no amunition left to react to any follow up crisis.
Congratulations America
I don't really follow the exchange rates, but wasn't the EU economy and the euro also hurt by the referendum? Not really the best ratio to look at then.
Keep on keepin' the beat alive!
Whereas the dollar is appreciating globally due to its own economy and rising interest rates and interest rate expectations, so not really the best comparison either.
The Euro is falling for a long times compared to $ and CHF. If a falling currency is as troubling as Hazir says, there must be something terribly, terribly wrong with the Euro.
"Wer Visionen hat, sollte zum Arzt gehen." - Helmut Schmidt
Just came across this quote by the new leader of the post-factual faction of the Conservative Party:
Was there a single honest Leave campaigner?In April 2013 at the Hansard Society’s annual parliamentary affairs lecture, Leadsom warned against the UK leaving the European Union, stating that "I think it would be a disaster for our economy and it would lead to a decade of economic and political uncertainty at a time when the tectonic plates of global success are moving.
Hope is the denial of reality
The point was that a collapsing currency is a bad thing, just like a too rapid rise is doing no country a favour.The Euro is falling for a long times compared to $ and CHF. If a falling currency is as troubling as Hazir says, there must be something terribly, terribly wrong with the Euro.
Congratulations America
And my point is that the Euro is going for a long time as well.
"Wer Visionen hat, sollte zum Arzt gehen." - Helmut Schmidt
If you're looking at the CHF-EU rate yes, but the relevant benchmark is the USD. Also, the Swiss franc would be a nice example of how detrimental it is to see your currency jump.
Congratulations America
Erm, no:
The dollar being stable to the CHF was one of the reason to drop the Euro. The other was Maria Dragi.
"Wer Visionen hat, sollte zum Arzt gehen." - Helmut Schmidt
Whatever, have fun with your reactions to something I did not say or imply in the first place.
Congratulations America
I would have said something very similar in 2013. A number of facts changed since then.
You won't hear me deny that the euro zone's economy has issues, too.The Euro is falling for a long times compared to $ and CHF. If a falling currency is as troubling as Hazir says, there must be something terribly, terribly wrong with the Euro.
Keep on keepin' the beat alive!
Understatement of the year LOL
I just find it - let's say - amusing that you point your finger at the falling pound, while the Euro does the same thing. Against the dollar!
"Wer Visionen hat, sollte zum Arzt gehen." - Helmut Schmidt
A currency plummeting like that is both a cause for concern in and of itself as well as a sign of underlying problems. If we agree that sudden plunges are mostly bad (although gradual decline may be more okay) then yeah, it was bad that the euro plummeted like that a couple of years ago.
The reasons for the drop and the consequences for the Eurozone are not necessarily the same as in the case of the UK and the pound. If we're interested in having this discussion then it would be better to go deeper rather than to just make broad generalizations that may or may not be accurate in these specific cases.
"One day, we shall die. All the other days, we shall live."
Really? Which facts changed that would make Brexit cause an economic collapse in 2013 but not 2016?
Hope is the denial of reality
A lot of very related facts, firstly the risks of leaving have fallen considerably:
1: All figures for every year until 2011 (not sure if 2012 figures had been released yet) was that the clear majority of exports were always going to the EU. That has turned on its head now and that proportion has been falling fast.
2: The Eurocrisis was supposed to be ending, instead Eurosclerosis has become ever more embedded. There is no clear end to the problems in Europe.
3: Related to both of the above the vast, vast majority of export growth in recent years has gone to nations outside of the EU.
The costs of membership have gone up:
4: In 2014 the UK was ordered to pay £1.7 billion extra to the EU because our growth has been outperforming the EU's growth.
5: Since then every year we have continued to grow considerably better than the permanently mired in depression Eurozone, this will inevitably cause a repeat of 4 next time there's a review.
The potential has gone away:
6: We were going to have serious and fundamental reform of the EU and our relationship of it in a renegotiation that was ongoing from our PM with the EU.
7: The renegotiation result was a massive slap in the face and a message of "screw you" we're not changing and we don't take you seriously.
So that's seven key facts that changed just for starters. The risks of leaving are less, the costs of staying is more and the principles are different. Point 7 is why every politically interested Tory I know in the north who previously supported Remain changed their mind and switched to Leave. There's simply no point continuing a relationship with someone that isn't interested in what you want.
http://www.nytimes.com/2016/07/10/wo...ritain-eu.html Nothing to see here. Continue making England great again.
Hope is the denial of reality
"One day, we shall die. All the other days, we shall live."
England already is great and will continue to be. Xenophobia has always existed and needs fighting not excusing like you're doing.
FFS that's not racism or xenophobia. The Euros are on, cars flying twin England flags appear every two years at this time of year as regular as clockwork.In a street lined with Eastern European shops, a car was recently parked with two English flags fluttering from its side mirrors.
Modern journalism at its best. Not even knowing that it's Euro 2016.
"Wer Visionen hat, sollte zum Arzt gehen." - Helmut Schmidt
Weren't they already out?
Congratulations America
Not during the vote, and plenty of people leave it on for some time after.
And even if it isn't, funny that an american newspaper complains about it, not like Americans are known for flag waving...
Keep on keepin' the beat alive!
What's funny is that, of all the things in that article one could choose to focus on, people choose to focus on the least important and least interesting aspect. #notallflags
I like the idea of fighting xenophobes by placating them and giving in to their xenophobic demands. Very Sun-Tzu, it'll totally psych 'em out.
"One day, we shall die. All the other days, we shall live."
And I like fighting xenophobes by vanning flags during football. Like some young Greens in Germany demanded
"Wer Visionen hat, sollte zum Arzt gehen." - Helmut Schmidt
#notallflags #crazyyounggreens
"One day, we shall die. All the other days, we shall live."
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