GBP - How low will it go?

[JohntheBike]

But we are not in the pre-EU times anymore... The investment to, all of a sudden, create an entire industry to build those components would be enormous!

Sent from my ONEPLUS A6000 using Contractor UK Forum mobile app

OK, but it took time to get to this position as members of the EU, so it will take time to get to a different position.

Anyway, we've all drifted way off the original subject about the £ exchange rates. Generally the UK populace is much better off now than when £1 = $4. So my contention is that exchange rates in the long term are not that important. In the short term yes, because individuals and companies may suffer as a result of sharp spikes. This country hasn't become bankrupt because the £ is only = $1.2 now.

[WTFH]

OK, but it took time to get to this position as members of the EU, so it will take time to get to a different position.

Anyway, we've all drifted way off the original subject about the £ exchange rates. Generally the UK populace is much better off now than when £1 = $4. So my contention is that exchange rates in the long term are not that important. In the short term yes, because individuals and companies may suffer as a result of sharp spikes. This country hasn't become bankrupt because the £ is only = $1.2 now.

You’re the one who takes everything off topic, then when you’ve lost your argument/the plot, you slip back to your old argument.

You remember before oil went up 2.3x, and since then you suggest that it’s the fault of the EU, such as the 29% inflation you remember, that never happened.

And since you keep repeating £1 = $4, can you tell me when that was the exchange rate, providing a link to evidence.

[BrilloPad]

You’re the one who takes everything off topic, then when you’ve lost your argument/the plot, you slip back to your old argument.

You remember before oil went up 2.3x, and since then you suggest that it’s the fault of the EU, such as the 29% inflation you remember, that never happened.

And since you keep repeating £1 = $4, can you tell me when that was the exchange rate, providing a link to evidence.

Save

So about 1948.

I wish Zeity was around to tell us about 1860 when £1 would buy you $10. I bet he visited DisneyWorld.....

[WTFH]

GBP - How low will it go?

Save

So about 1948.

I wish Zeity was around to tell us about 1860 when £1 would buy you $10. I bet he visited DisneyWorld..... [emoji57]

Thanks. So from 1949 until 1971, the pound had a pegged rate of $2.80.
Before 1949 for a while it was pegged at $4.03, which was unsustainable, hence why it was devalued in 1949.
After 1971, it was not a pegged rate.

But it has never been $4 in the last 70 years. I “suggest” that it’s not the EU’s fault that JtB’s memory is faulty and his ability to form a valid logical argument is extremely flawed.

[JohntheBike]

Thanks. So from 1949 until 1971, the pound had a pegged rate of $2.80.
Before 1949 for a while it was pegged at $4.03, which was unsustainable, hence why it was devalued in 1949.
After 1971, it was not a pegged rate.

But it has never been $4 in the last 70 years. I “suggest” that it’s not the EU’s fault that JtB’s memory is faulty and his ability to form a valid logical argument is extremely flawed.

So, would you say that we are more or less better off than when £1 = $2.80?

[northernladyuk]

Thanks. So from 1949 until 1971, the pound had a pegged rate of $2.80.
Before 1949 for a while it was pegged at $4.03, which was unsustainable, hence why it was devalued in 1949.
After 1971, it was not a pegged rate.

But it has never been $4 in the last 70 years. I “suggest” that it’s not the EU’s fault that JtB’s memory is faulty and his ability to form a valid logical argument is extremely flawed.

The old man has a pegged rate of $4.

[JohntheBike]

The old man has a pegged rate of $4.

for some considerable time, well before I suspect you were born, 2 shillings and sixpence, i.e. half a crown, was colloquially referred to as half a dollar.

However, irrespective of the actual rate, and when exactly it was, we are much better of now with £1 = $1.2 than we were then. So I repeat that in the long term, exchange rates are not that relevant. What is relevant is that we compare actual values based on a known criteria, such as how long does it take based on average wages to buy any particular article now as compared with any previous time. Clearly if you apply those criteria to say a TV, then the answer would be that it costs less in real terms now to buy a TV than it did in 1960 for example. I would suggest though that it costs more in real terms now to buy a house than it did in 1960.

[CryingSheep]

So, would you say that we are more or less better off than when £1 = $2.80?

That's like asking if we are not better now that pollution is at record levels!!!

Btw by the same logic I guess that you are a supporter of staying in the EU, since it's clear we are way (way, wayyyy) better off now than before joining the EU!? It's a very simplistic conclusion, but based on your (very, very simple logic) makes sense...

[CryingSheep]

for some considerable time, well before I suspect you were born, 2 shillings and sixpence, i.e. half a crown, was colloquially referred to as half a dollar.

However, irrespective of the actual rate, and when exactly it was, we are much better of now with £1 = $1.2 than we were then. So I repeat that in the long term, exchange rates are not that relevant. What is relevant is that we compare actual values based on a known criteria, such as how long does it take based on average wages to buy any particular article now as compared with any previous time. Clearly if you apply those criteria to say a TV, then the answer would be that it costs less in real terms now to buy a TV than it did in 1960 for example. I would suggest though that it costs more in real terms now to buy a house than it did in 1960.

I give up!!!

Next you gonna give as an example that cost less to take a flight to the US today than in the 60's

[JohntheBike]

I give up!!!

Next you gonna give as an example that cost less to take a flight to the US today than in the 60's

well, you can answer that question yourself. Fine out what the average wage was in 1960 and relate that to the cost of a transatlantic ticket and do the same for today.