Pound forecast to tumble on 'insane' spending cuts

[scooterscot]

Oh goody


Pound forecast to tumble on 'insane' spending cuts - Telegraph

[AtW]

If the dirty spekulant is correct and GBP falls to 1.40 against USD, then it would only be 10% drop, hardly a disaster.

[MarillionFan]

If the dirty spekulant is correct and GBP falls to 1.40 against USD, then it would only be 10% drop, hardly a disaster.

As the UK imports 99.9999995% of everything it consumes and as everything is purchased in dollars, the knock on effect is huge. Add to it a move 17.5 - 20.0% in VAT on the New Year and the cost of everything, including Thai Tat goes through the roof.

I for one think next year is going to be horrendous, and on that basis I am closing the doors on my retail business in the New Year for good and going to do something more profitable instead.

[swamp]

There will be lots of tourists in London though.

[RichardCranium]

There will be lots of tourists in London though.

It just goes from bad to worse.

[AtW]

going to do something more profitable instead.

If you have an Xmas firesale of sockies then let me know

[AtW]

As the UK imports 99.9999995% of everything it consumes and as everything is purchased in dollars, the knock on effect is huge. Add to it a move 17.5 - 20.0% in VAT on the New Year and the cost of everything, including Thai Tat goes through the roof.

OMFG, prices will go up by 3%, disaster!!! Buy 3% less tat and it's all even.

The great irony is that if dollar gets weaker then oil goes up, so petrol prices in UK go up, and if dollars goes stronger then due to weakness in GBP petrol prices go up again (or don't drop), ffs.

[TimberWolf]

Surely the £ and the $ will tumble?

[MarillionFan]

OMFG, prices will go up by 3%, disaster!!! Buy 3% less tat and it's all even.

The great irony is that if dollar gets weaker then oil goes up, so petrol prices in UK go up, and if dollars goes stronger then due to weakness in GBP petrol prices go up again (or don't drop), ffs.

Actually thats where you are talking out of your arse!

In the last 18 months my supplier costs have gone up between 20-50% on different lines. The same dining table & chairs I was buying 18 months ago for £249 exc vat to sell at £599 inc vat (which I would sell at £499) is now £359 exc vat to retail at £799. Thats based on a US Dollar rate of £1.55. If that changes to £1.40, that table becomes £880. Then add 2.5%, you have a £900 pound dining table and chairs which 18 months ago was £500!!! So people aint gonna buy, businesses will go bust, spiral economics.

There's a large fan over there, it's spinning fast and something large, brown & smelly is heading towards it.

[Green Mango]

Surely the £ and the $ will tumble?

$ is predicted to rally. It certainly has against £ over last few days.

There may some difficult days for the £ again, but at least this country
is tackling it's debt, if we leave it to grow we are just storing up an even
bigger problem for the future.