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1.93's A$ to the Pound!!!

1.93's A$ to the Pound!!!

Old Feb 24th 2010, 1:39 pm
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Angry Re: 1.93's A$ to the Pound!!!

Much as I hate to admit it I find myself in basic agreement with Freebo---suffer now or suffer considerably more in a year or so.Perhaps I can think up some substantial arguement to counter his views--I hope so,because the consequences will be truly terrible[a new 1930's???].To use Jennigee's expression we all find ourselves between a rock and a very hard place and with precious little turning room.Any world wide economic recovery is so weak as to be none existent and china will soon turn down with its bloated property market etc.
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Old Feb 24th 2010, 8:26 pm
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Default The STUPID countries

First we had the PIIGS and now we have the STUPID countries. This is the acronym that economic commentators and traders are now using to refer to Spain, Turkey, United Kingdom, Portugal, Italy and Dubai. These economies are suffering from high fiscal and current account deficits.

The UK has a fiscal deficit of 13% of GDP which is higher than Greece, but its current account deficit is much lower thanks to a floating (or should I say sinking) currency. Thank God the UK didn't join the Euro and the wilting pound is allowing it to keep some competitiveness.

http://www.telegraph.co.uk/finance/b...be-STUPID.html
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Old Feb 24th 2010, 8:32 pm
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Default Re: 1.93's A$ to the Pound!!!

Originally Posted by danjones1
I'd seriously think again if I was going to sell up in the UK to go to Australia. Seems pointless heading out there to be poor and hot!
The more I look at it, letting the UK property out seems to be the way to go because it provides heaps of options with no compelling push to make any "best of the worst" decisions. Selling up now seems to be where most of the rocks and hard places are. In time (probably 5 years plus) things will bounce back. If the pound doesn't return to it's former glory then the house prices will adjust to compensate.
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Old Feb 24th 2010, 8:34 pm
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Default $US 1.05 to the Pound

Here's something to scare holders of Pound denominated assets:

http://www.telegraph.co.uk/finance/c...UBS-warns.html

I guess that would equate to 1.15 A$ to the Pound!
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Old Feb 24th 2010, 8:41 pm
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Default Re: $US 1.05 to the Pound

Originally Posted by Budawang
Here's something to scare holders of Pound denominated assets:

http://www.telegraph.co.uk/finance/c...UBS-warns.html

I guess that would equate to 1.15 A$ to the Pound!
So they're saying that if the UK stops its huge money printing/borrowing and spending the £ will go down further, some mistake surely?

Meanwhile the Swiss central bank are actively trying to devalue their own currency, maybe we are too.

Last edited by freebo; Feb 24th 2010 at 8:52 pm.
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Old Feb 24th 2010, 8:51 pm
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Default Re: 1.93's A$ to the Pound!!!

Originally Posted by freebo
No guarantees of anything and nothing on the horizon to suggest either of these things will happen, meantime you stand to loose 5 years plus of Australian interest @ 6% plus.
And that's a very valid argument as well. There's unfortunately no 100% perfect answers to this dilemma.
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Old Feb 24th 2010, 8:53 pm
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Default Re: 1.93's A$ to the Pound!!!

Originally Posted by paulry
The more I look at it, letting the UK property out seems to be the way to go because it provides heaps of options with no compelling push to make any "best of the worst" decisions. Selling up now seems to be where most of the rocks and hard places are. In time (probably 5 years plus) things will bounce back. If the pound doesn't return to it's former glory then the house prices will adjust to compensate.
we agree as long as you have enough cash to get you there, plus a chunk to settle in with say £10 to £20,000 then who cares about the pound or house prices as the rent will be coming in & left in uk bank. you will be earning in oz so just wait till things are right then sell. I do realise that some need to sell to fund move.
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Old Feb 24th 2010, 9:02 pm
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Default Re: 1.93's A$ to the Pound!!!

Originally Posted by eugene43
we agree as long as you have enough cash to get you there, plus a chunk to settle in with say £10 to £20,000 then who cares about the pound or house prices as the rent will be coming in & left in uk bank. you will be earning in oz so just wait till things are right then sell. I do realise that some need to sell to fund move.
I can access money to fund the move without selling. If arranged sensibly the "letting the house out" option might work out best. I have in mind a kind of 50/50 option to split the risk.

...Time to pull out the pros and cons lists
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Old Feb 24th 2010, 9:03 pm
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Default Re: 1.93's A$ to the Pound!!!

Originally Posted by paulry
And that's a very valid argument as well. There's unfortunately no 100% perfect answers to this dilemma.
Sorry, while you where replying I deleted my response - I was just thinking I have no idea how things will be in 5 years (or 5 months for that matter ) and I'm in a very similar boat

Last edited by freebo; Feb 24th 2010 at 9:07 pm.
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Old Feb 24th 2010, 9:10 pm
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Default Re: $US 1.05 to the Pound

Originally Posted by freebo
So they're saying that if the UK stops its huge money printing/borrowing and spending the £ will go down further, some mistake surely?

Meanwhile the Swiss central bank are actively trying to devalue their own currency, maybe we are too.
The Swiss Franc is still very strong as Switzerland is seen as a safe haven. Unlike the UK, their banks were much more conservative than The City and they weathered the GFC quite well. No comparison with the UK.

Given the weakness of the UK economy, sweeping cuts to government spending could push the UK back into recession which would lead to further downward pressure on the pound.
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Old Feb 24th 2010, 9:10 pm
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Default Re: 1.93's A$ to the Pound!!!

Originally Posted by paulry
I can access money to fund the move without selling. If arranged sensibly the "letting the house out" option might work out best. I have in mind a kind of 50/50 option to split the risk.

...Time to pull out the pros and cons lists
sounds like we are the lucky ones who have planed our move properly & have no need to sell our house to fund it.
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Old Feb 24th 2010, 9:16 pm
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Default Re: $US 1.05 to the Pound

Originally Posted by Budawang
The Swiss Franc is still very strong as Switzerland is seen as a safe haven. Unlike the UK, their banks were much more conservative than The City and they weathered the GFC quite well. No comparison with the UK.

Given the weakness of the UK economy, sweeping cuts to government spending could push the UK back into recession which would lead to further downward pressure on the pound.
I wasn't trying to say the Swiss economy was weak but that their CB was involved in deliberately weakening their currency.

I don't agree with the notion that cuts in govt spending would weaken the pound, quite the reverse in fact, in simple terms the UK govt is spending money they don't have, how can curtailing this be bad for their "credit rating", and contrary to popular belief govt "stimulus" is an inefficient way to revive the economy.

http://online.wsj.com/article/SB124655626360387195.html

http://www.gata.org/node/8300

http://www.sharechat.co.nz/article/e...ervention.html

Last edited by freebo; Feb 24th 2010 at 9:24 pm.
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Old Feb 24th 2010, 9:23 pm
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Default Re: 1.93's A$ to the Pound!!!

Originally Posted by freebo
Sorry, while you where replying I deleted my response - I was just thinking I have no idea how things will be in 5 years (or 5 months for that matter ) and I'm in a very similar boat
No worries . We are all trying to navigate the same choppy seas to find the best way forward

Last edited by paulry; Feb 24th 2010 at 9:42 pm.
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Old Feb 24th 2010, 9:53 pm
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Default Re: 1.93's A$ to the Pound!!!

Originally Posted by eugene43
sounds like we are the lucky ones who have planed our move properly & have no need to sell our house to fund it.
No, we're just old gits!
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Old Feb 24th 2010, 9:53 pm
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Default Re: 1.93's A$ to the Pound!!!

Originally Posted by JenniGee
In the UK, we have significant savings from the sale of our properties, which are devaluing by the day...interest rates in real terms are in the minus figures thanks to inflation & increasing taxation.
Buy gold.
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