03-04-2017, 04:14 AM
31
Re: The Sinking £
Originally Posted by swimfeeders
->
HiI disagree.
We have not yet left the EU, there is no guarantee that we will have free trade with with the EU, France in particular is out to punish the UK, along with others.
We need to make the UK a very attractive place to invest.
We need to attract foreign firms to invest here, which means low interest rates and low Corporation Tax.
We will soon be in competition with the EU, we need to flourish.
Our higher than world average interest rates have been holding our dollar uncomfortably high for years now as foreign currency pours into the country.
UK bank rate 0.25% - Australia 1.5%
Where would you borrow and where would you invest?
03-04-2017, 05:28 AM
32
Re: The Sinking £
Originally Posted by Bruce
->
You've got it arse about. Low interest rates do not attract foreign investments, they are attracted by higher interest rates. ie they borrow money where there is low interest rates and invest where interest rates are high.Our higher than world average interest rates have been holding our dollar uncomfortably high for years now as foreign currency pours into the country.
UK bank rate 0.25% - Australia 1.5%
Where would you borrow and where would you invest?
If you are setting up a new factory and needed to borrow the money you would invest in the UK, not Australia.
That is why the UK has vast amounts of inward investment in job creation, far more than Australia.
03-04-2017, 08:17 AM
34
Re: The Sinking £
Originally Posted by M.P.R. Ashford
->
The GBP went up quite a lot last week!!
It still has a long way to go to get back to where it was pre referendum, which, as a major importer, is the reason why inflation is rising so much.
03-04-2017, 08:38 AM
36
Re: The Sinking £
Originally Posted by Julie1962
->
Main reason prices are rising is people have an excuse to put them up. Companies jumping on the band wagon IMO 
We will have to disagree on that one Julie.
Oil and Gas is priced in dollars, so we are paying 15% more for energy costs.
Some companies are jumping on the bandwagon, Apple for example, many others are not.
03-04-2017, 09:02 AM
38
Re: The Sinking £
We don't want it to go back where it was. Before the 'vote' the GBP was too high and had been holding the UK back for a couple of years as I remember. That's one of the reasons why our economy went ahead after the vote. 1.24 or even 1.2350 against the $ is OK for us in the long run.
03-04-2017, 02:26 PM
39
Re: The Sinking £
The weak pound is encouraging foreign investors to buy up what is left of UK industry.Pretty soon th UK will be owned entirely by China, France and Qatar.
In addition to the 30% of so of empty London properties owned by overseas investors (and keeping property process up ) there is now a rush to buy in while the city is going cheap. So instead of MORE affordable homes being available there will be fewer.
and with austerity set to continue (says your chancellor) until 2020, wages not going up and benefits frozen, who would be a jam now??? More like IN a jam.
Well done!
|
|
