How come the pound is so strong?

**threaded** · 3 March 2006, 15:11

roflmfao

**ALM** · 3 March 2006, 15:36

Originally posted by Mailman

Especially when this country produces nothing the rest of the world wants?

Whats up with that?

Mailman

Ah Mailman! I admire the interest you continue to show in economics despite knowing absolutely feck all about it!

We may not be a major exporter of manufactured goods but being one of the financial centres of the world, London sells hundreds of billions of pounds of financial services to the world each year. Simple as that.

**Mailman** · 3 March 2006, 15:38

Yeah but you see...that kind of thing can be done anywhere these days...and as we all know anything that is remotely near London suddenly becomes bloated, much like your understanding of economics ALM

Actually...seeing as 90% of all things worth anything have already been outsourced to India its only a matter of time before the banks wake up and realise they can do the same job of creating money in India for a fraction of the cost of doing that here in Blighty

Mailman

**ALM** · 3 March 2006, 15:46

Originally posted by Mailman

Actually...seeing as 90% of all things worth anything have already been outsourced to India its only a matter of time before the banks wake up and realise they can do the same job of creating money in India for a fraction of the cost of doing that here in Blighty

Yes, that might very well be true but that would affect the value of the pound in the FUTURE Mailman. You asked why the British Pound is so strong TODAY. The answer is because Britain exports £billions of financial goods and services. Is any of this getting through or would you like to make some more irrelevant comments?!

**sunnysan** · 3 March 2006, 16:07

Outsourcing

MM

I think one thing you have to realise about outsourcing is that with comes a loss on intellectual capital.

If you outsource to China,India or EE its only a matter of time before you have been ripped off and your ex janitor now has a company which will put you out of business using your own intellectual Capital

The banks have invested billions in the best brains to work out the financial models they use to make money. I wouldnt imagine that for a reduced operating cost they would trade the security of their intellectual capital.

The other aspect is security. The UK is expensive but it is also secure and stable, no regime changes, idealist goverments who will tax the sh!t out of them or nationalise them etc. They know what they are going to get here and thats why they stay.

IMHO anyway

**sonu** · 3 March 2006, 17:51

Heard of quite a few out-sourced IT projects that have failed by placing them abroad. It's all about effective communication and knowledge base.

**threaded** · 3 March 2006, 18:36

It's all about effective communication and knowledge base.

And having people who can code and not just say yes with a dumb-ass smile.

**DodgyAgent** · 3 March 2006, 18:41

Originally posted by threaded

And having people who can code and not just say yes with a dumb-ass smile.

And having agents who can sort the wheat from the chuff

**Skeptical** · 3 March 2006, 18:43

the chaff

your local grammar police

How come the pound is so strong?