The £/$ fall to 1.33 in the wake of the referendum.
Aug 15th 2016, 4:28 am
#226
BE Enthusiast
Joined: Mar 2014
Posts: 429
Re: The £/$ fall to 1.33 in the wake of the referendum.
The purpose of the exercise is to increase the money supply, which stimulates the economy, it also has the effect of weakening the currency.
This whole argument has been completely overblown, at the end of the day trade comes and goes. People need to read the rest of the Lisbon Treaty, not just Article 50. The EU is bound to those principles by law, such as the freedom of movement of people. They can't just cave on the basis that they want to carry on trade.
And various countries have got axes to grind with the UK, for example Spain in relation to Gibraltar. The Germans would be quite happy to take financial business away from the city of London, etc.
This is another argument that is overblown, it implies that everything is sweetness and light in Switzerland. The Swiss had a currency crisis of their own recently because of trying to peg their currency to the Euro, then they abandoned it and that caused turmoil across Europe - if they were in the Euro, that couldn't have happened.
Also, they voted in a referendum a year or so ago to leave the Schengen Area, thereby abrogating their EEA-style agreements with the EU, and they will face all kinds of problems if the vote isn't overturned in the next few months.
The Swiss situation is one of the reasons the EU will take a hard line with the UK, because they can't say to the Swiss you must abide by your agreement on freedom of movement to have free access to European markets and then compromise with the UK. And Switzerland has never been in the EU, so they have more leverage because they might want to join eventually. The UK has zero leverage because it's leaving.
Anyway, as I said I will be completely unsurprised when Sterling drops to $1.20. Not sure if it will go lower than that, depends on how much of a hash job of it David Davis makes.
This whole argument has been completely overblown, at the end of the day trade comes and goes. People need to read the rest of the Lisbon Treaty, not just Article 50. The EU is bound to those principles by law, such as the freedom of movement of people. They can't just cave on the basis that they want to carry on trade.
And various countries have got axes to grind with the UK, for example Spain in relation to Gibraltar. The Germans would be quite happy to take financial business away from the city of London, etc.
This is another argument that is overblown, it implies that everything is sweetness and light in Switzerland. The Swiss had a currency crisis of their own recently because of trying to peg their currency to the Euro, then they abandoned it and that caused turmoil across Europe - if they were in the Euro, that couldn't have happened.
Also, they voted in a referendum a year or so ago to leave the Schengen Area, thereby abrogating their EEA-style agreements with the EU, and they will face all kinds of problems if the vote isn't overturned in the next few months.
The Swiss situation is one of the reasons the EU will take a hard line with the UK, because they can't say to the Swiss you must abide by your agreement on freedom of movement to have free access to European markets and then compromise with the UK. And Switzerland has never been in the EU, so they have more leverage because they might want to join eventually. The UK has zero leverage because it's leaving.
Anyway, as I said I will be completely unsurprised when Sterling drops to $1.20. Not sure if it will go lower than that, depends on how much of a hash job of it David Davis makes.
A good article on UK's trade agreements: Economists not as hot on trade deals as you might think
Oct 4th 2016, 2:04 pm
#227
BE Forum Addict
Thread Starter
Joined: Sep 2003
Location: Grand Rapids, MI
Posts: 4,525
Re: The £/$ fall to 1.33 in the wake of the referendum.
New low $1.27 to the pound great for us as tourists not so good for the UK or people here with pensions etc.
Brexit fears send British pound to new 31-year low - CNN
https://apple.news/ArelTFcWNSrmv_l3Dyxov4g
Brexit fears send British pound to new 31-year low - CNN
https://apple.news/ArelTFcWNSrmv_l3Dyxov4g
Oct 4th 2016, 3:55 pm
#228
Forum Regular
Joined: Feb 2013
Location: Mission Viejo, CA
Posts: 255
Re: The £/$ fall to 1.33 in the wake of the referendum.
Like a Status Quo song... down, down, deeper and down...
Oct 4th 2016, 4:23 pm
#229
Conditional Resident
Joined: Apr 2016
Location: IL
Posts: 184
Re: The £/$ fall to 1.33 in the wake of the referendum.
yep, shoot me now. just when i want to move money out of the UK to USA, hopefully it picks up again as the dollar sinks from Trump being Elected lol (i wish 
)
)
Oct 4th 2016, 4:28 pm
#230
Lost in BE Cyberspace
Joined: Jul 2008
Location: Portlandia Metro
Posts: 7,425
Re: The £/$ fall to 1.33 in the wake of the referendum.
This might be a good time to move money from the UK to the US, especially if the pound is likely to fall further.
It it the 40th anniversary of the IMF bailout this year.
http://bilbo.economicoutlook.net/blog/?p=33617
It it the 40th anniversary of the IMF bailout this year.
http://bilbo.economicoutlook.net/blog/?p=33617
Oct 4th 2016, 5:02 pm
#231
Lost in BE Cyberspace
Joined: Nov 2012
Location: bute
Posts: 9,740
Re: The £/$ fall to 1.33 in the wake of the referendum.
Will we never see it at £1 = $4.80 again ? Can we have the Empire back ?
Oct 4th 2016, 5:09 pm
#232
Sasstronaut
Joined: Aug 2016
Location: Manhattan, NYC
Posts: 1,304
Re: The £/$ fall to 1.33 in the wake of the referendum.
I did a semester of university in the U.S when the pound was riding at almost $2.00. It was glorious... I could afford the 'fancy' ramen noodles, and even an ipod (that I still use). Went out the window returning to the UK though (my 'lavish' lifestyle... not the ipod).
Last edited by livinginnyc; Oct 4th 2016 at 5:13 pm.
Oct 4th 2016, 6:00 pm
#233
Heading for Poppyland
Joined: Jul 2007
Location: North Norfolk and northern New York State
Posts: 14,547
Oct 4th 2016, 6:33 pm
#235
Account Closed
Joined: Jan 2006
Posts: 0
Re: The £/$ fall to 1.33 in the wake of the referendum.
Move to Canada and exchange for CAD$, still a decent rate if exchanging for Canadian....😉
Oct 4th 2016, 6:42 pm
#236
I have a comma problem
Joined: Feb 2009
Location: Fox Lake, IL (from Carrickfergus NI)
Posts: 49,598
Re: The £/$ fall to 1.33 in the wake of the referendum.
Made it way too easy to go mental on my debit card though. Also, CAD$30+ for a 12 pack of beer - WTF is that all about???
Oct 4th 2016, 6:45 pm
#237
Account Closed
Joined: Jan 2006
Posts: 0
Re: The £/$ fall to 1.33 in the wake of the referendum.
Booze is heavily taxed and a revenue generator for the provincial governments.
Some provinces like BC also control the distribution of booze so even if there are private liquor stores they have to buy the booze from the govt at inflated prices.
Canada us very backwards when it comes to alcohol and it's pricey for sure.
Home brewing is pretty popular because of the cost of buying beer in stores.
Some provinces like BC also control the distribution of booze so even if there are private liquor stores they have to buy the booze from the govt at inflated prices.
Canada us very backwards when it comes to alcohol and it's pricey for sure.
Home brewing is pretty popular because of the cost of buying beer in stores.
Last edited by scrubbedexpat091; Oct 4th 2016 at 6:50 pm.
Oct 4th 2016, 6:58 pm
#238
I have a comma problem
Joined: Feb 2009
Location: Fox Lake, IL (from Carrickfergus NI)
Posts: 49,598
Re: The £/$ fall to 1.33 in the wake of the referendum.
Booze is heavily taxed and a revenue generator for the provincial governments.
Some provinces like BC also control the distribution of booze so even if there are private liquor stores they have to buy the booze from the govt at inflated prices.
Canada us very backwards when it comes to alcohol and it's pricey for sure.
Home brewing is pretty popular because of the cost of buying beer in stores.
Some provinces like BC also control the distribution of booze so even if there are private liquor stores they have to buy the booze from the govt at inflated prices.
Canada us very backwards when it comes to alcohol and it's pricey for sure.
Home brewing is pretty popular because of the cost of buying beer in stores.
It was only Molson as well, nothing fancy
Oct 4th 2016, 9:15 pm
#239
Grumpy Know-it-all
Joined: Jul 2010
Location: Calgary, Alberta
Posts: 8,928
Re: The £/$ fall to 1.33 in the wake of the referendum.
It's a holdover from Prohibition. There is only one wholesaler licenced by the province in Alberta. It's even more expensive back east because it's still owned by the LCB in those provinces.
You can't even legally move alcohol interprovincially except in small quantities, some guy in New Brunswick is challenging it in court after he got busted bringing back a carload of booze from Québec.
Personally I quite like it because you don't have alcoholism like you do in Montana, not to the same extent anyway and you don't have teenagers puking all over the place on the weekend like you do in the UK.
You can't even legally move alcohol interprovincially except in small quantities, some guy in New Brunswick is challenging it in court after he got busted bringing back a carload of booze from Québec.
Personally I quite like it because you don't have alcoholism like you do in Montana, not to the same extent anyway and you don't have teenagers puking all over the place on the weekend like you do in the UK.
Oct 4th 2016, 9:17 pm
#240
Grumpy Know-it-all
Joined: Jul 2010
Location: Calgary, Alberta
Posts: 8,928
Re: The £/$ fall to 1.33 in the wake of the referendum.
New low $1.27 to the pound great for us as tourists not so good for the UK or people here with pensions etc.
Brexit fears send British pound to new 31-year low - CNN
https://apple.news/ArelTFcWNSrmv_l3Dyxov4g
Brexit fears send British pound to new 31-year low - CNN
https://apple.news/ArelTFcWNSrmv_l3Dyxov4g