That was left to the caf to do
Brexited | the worst threads live the longest
- Thread starter Silva
- Start date
That was left to the caf to do
Carney is just a mainstream monetary economist and does what all mainstream monetary economist do. With all its benefits and with all its fault. Yet while Yellen looks like an owl in headlights and Draghi is the evil Goldman banker, he is fairly charismatic.
Having an undervalued/overvalued currency both creates welfare loses. The idea that an undervalued currency is good for a country comes from people who see the trade balance of a country as score-card: Exports are your goals, imports the goals of the opponents and the difference is the score. This view is just bonkers and far outside both the mainstream of economics and common sense. Peter Navarro might believe something like that but he is nuts.
It is true so that the Euro is fairly undervalued at the moment, while the US$ will continue to be strong in the short-term.
Re this post and the other points you make.
I'm not saying the Euro is undervalued, it may be but that is not my point.
I'm saying the value of German production is underpriced because it is inside the Eurozone.
Where would the DMark be against the pound and a German free Euro right now if Germany wasn't in the Euro do you think?
Just because all the countries in the Euro agreed to join the Euro doesn't mean they were right to do so. I think the Greeks have shown that particular line of logic is deeply flawed.
Also, I'm not saying that the entire economy of any country is helped by lower or higher exchange rates but it is the case that holding a lower exchange rate, than the value of your production would otherwise determine in a free market, is a huge advantage in trade while holding an exchange rate higher is detrimental.
That is what the Euro is, a fixed exchange rate which is the Germans biggest advantage in production and trade. No matter how well its economy does the natural balance of a rising currency is negated absolutely within the Eurozone and largely mitigated in trade outside of the Euro. Long term the other countries with weaker economies are screwed and I haven't heard of any mechanism being proposed which would offset this at all.
Finally, rules were put in place on trade surpluses which Germany is breaking and the result is that absolutely nothing will be done about it. Meanwhile, Germany runs a 15 to 18 billion Euro per month trade surplus and if anyone points this out its called propaganda.
Yeah but the pound.....
Freedom of movement.....
And some other things
Freedom of movement.....
And some other things
First of all, a lot of that is true for the Dollar as well. There are vast differences inside the US and by that logic, goods from California also enjoy an undervalued currency.
Second of all, it's not like we are not trying to reduce it, it would actually be better for our economy. It's just not working for various reasons.
The US analogy doesn't work due to the lack of fiscal unity in Europe as well as the practical bar to movement of labour presented by 20+ languages. German industry is doing very well from what is effectively an undervalued Mark.
Germany did pretty damn well pre-Euro as well.
Last edited:
It helps but it's not the only reason Germany is such a success. Japan has a free floating currency and they are doing fine
But Japan's recent model has been QE on steroids.
I am not denigrating the German economy - they have an enviable industrial base and skilled workforce. But that just emphasises that they shouldn't be in a currency bloc with Club Med.
Market wise all will be able to increase prices and may need to if demand from their region goes up. That's how supply and demand naturally works.
For me personally there wouldn't be, aside from tarrifs to the EU I'll be okay. But I'm making a case for the free trade argument. What about the businesses reliant on trade from the EU?
Except the EU market is much much bigger so EU sellers and buyers will generally be hit less hard than UK sellers and buyers. They have much more power in the relationship
Negative balance of payments isn't necessarily a negative thing. For one rightly or wrongly we're a service economy and don't have the infrastructure to manufacture most things (and I'm a manufacturer). For 2, if we're buying goods for £1 and selling for £3, while we produce at £3, we're still making a profitable economy despite the negative balance of payments.
I don't think it's accurate we 'got raw materials for virtually nothing'. In fact we would have had a negative balance of payments with all of our colonies. China we paid for tea, even started a war to open up their borders, India we paid for all kinds of commodities and West Africa we paid for slaves. We became rich of having a negative balance of payments.
I would like to ask all remainers that seem to want whats best for the uk, what parties they voted for that they thought would actually modernise the uk? Bring it into at least the 20th century if not the 21st?
Why are you not focusing your energy on uk infrastructure?
Where have you been all these years?
Britain is a shithole, has been and always will be service wise, being in or out of the eu wont change that.
Why are you not focusing your energy on uk infrastructure?
Where have you been all these years?
Britain is a shithole, has been and always will be service wise, being in or out of the eu wont change that.
Yes, they won the World Cup, but then it all fell apart vs France.
When was the last time you lived in the U.K.?
You could argue the same is true of London and the rest of the UK
Success breeds success and there comes a point where the effect becomes unchangeable by anything the rest of the country or countries can do themselves.
That is the point England is at with regards to London and a few major cities. Is that what the EU is trying to achieve to centralise all economic power in Germany and a few Northern European countries and run everywhere else down to become like Stoke.
No, I don't reckon it's the plan, just the way it is at the moment
When queen Victoria was king.
Its still the same. Im sure some where near you someone has been repairing a pothole in the road for 3 months causing chaos with traffic
Yes, we hear that a lot, but how so? Say we traded in currency X, and that currency X was double as valuable as the current Euro, what would change? German companies would charge half as much of currency X for their products... and pay half as much of currency X for their imports. Germany has literally no noteworthy natural resources anymore (where an undervalued currency would help). It would damage Germany by not being in the same currency as it's neighbors anymore, and would cause the administrative headache of changing currency... but I still don't see how it would be an disadvantage compared to the US/UK.
There is absolutely no way of knowing... What if the Germans voted in 'Die Linke' and they make one of theirs president of the Bundesbank? We might get inflation on steroids. Or we might vote in the AfD and they do whatever they tell themselves would be good for the D-Mark. After all the talk from the US and UK about us manipulating our currency we might just figure to do exactly that... once we do have our own back. A lot easier for Germany to manipulate a German DMark trading price then Europe's Euro, no?
True enough. But those countries who would have been better off not joining still get there say in today's Euro... Mario Draghi would hardly be ECB president if all the talk about Germany dictating Euro policy were true.
It can only be described as a fixed exchange rate within the Euro though, a fixed exchange rate within a common market largely governed by the same (and if not at least compatible) laws. There is no such thing as a 'natural balance of a rising currency' as the strength of an economy is only one factor in the value of that economy's currency... Many rising economies have and continue to inflate their own currencies... some are hit by inflation without wanting it. The weaker economies within the the eurozone benefit from a stable currency... It's far from perfect, and won't by itself bring anybody prosperity, but please inform me of the mechanisms being proposed to prop up Blackpool, Coventry, Detroit or Flint? Would they be better off just dropping out of the Pound and Dollar?
To point out facts isn't. To claim that "Germany abuses the Euro to take advantage of everyone else", which is being done, is though. It's a blatant lie used for political reasons, what would you call it?
Edit: Sorry for taking this thread off topic, but living near the french/german border and visiting France almost weekly in the summertime is enough to make me touchy on the subject
The Euro is of huge practical value to me, and hugely beneficial to this entire region on both sides of the border. Not to speak of the advantages my employer has by not having to deal with a separate currency for every country they do business in (It's not a huge business, and the deals themselves aren't huge, so any costs that come with having separate floating currencies might always potentially be a deal breaker...). But let me be clear on one thing: German goods aren't irreplaceable at all... from all the major economies they are probably the easiest to replace. Which is precisely why Germany needs stability nationally and internationally to continue to be prosperous... A stability we see as being under threat by those using the 'propaganda' I just described.
Last edited:
Report about British expats (obviously not foreigners, Britons can only be expats) in Spain and Brexit:
Some of those mindsets are just hilarious
Some of those mindsets are just hilarious
Article 50 - Wednesday 29th of March it is.
On 30th March will wages soar, holidays be doubled, unemployment be at 0.1%, exports rise by 25% and so on ?
On 30th March will wages soar, holidays be doubled, unemployment be at 0.1%, exports rise by 25% and so on ?
So you're really going ahead with it it.
Feck you, Britain, feck you.
Feck you, Britain, feck you.
The Conservative and Unionist partyNumber of applications from EU nurses to the NHS drops by 90% since Brexit and record numbers are quitting.
https://www.theguardian.com/society/2017/mar/18/nhs-eu-nurses-quit-record-numbers
But it's ok, Hunt is going to deal with the nursing crisis by imposing new language tests on foreign NHS workers, yay!
https://www.theguardian.com/society/2017/mar/18/nhs-eu-nurses-quit-record-numbers
But it's ok, Hunt is going to deal with the nursing crisis by imposing new language tests on foreign NHS workers, yay!
I genuinely don't understand the world anymore. How does anyone see this stuff and thing its logical or ok? I just had a scan of the comments section of the Express version of this article, and it was like a Viz parody.
Aah, but if there are less nurses, the salary bill will be less.....are you following....saving money....
I think that's fair enough tbh. NHS workers should know some basic English
If you've got an hour to kill, it worth giving this a listen.
Interesting take on the potential awfulness that could follow after the UK leaves. Also it's a bit of a laugh.
Apparently it's good because we can go back to good British nurses led by matron, and all the British kids would love to be nurses but they're not allowed by the EU. Oh and apparently nurses going to university is stupid, because it's a vocation not a career and they just need a caring manner and some good British common sense.
And I really wish I was making this stuff up...
PS is the express for real? I always thought it a comedy paper, were people buy it to have a laugh. Jeez its the UK version of saturday night live that one
And you think a time when every hospital in the U.K. is suffering a chronic shortage of staff is the wisest time to implement this new test? Which according to some EU nurses isn't a basic test, but requires quite a high level of language skills.
Yep it is.
Communication is key especially in diagnosing a person's condition quickly. I am anti brexit, I never voted for the Capitalist party and I am not a big fan of radical right issues myself but on that regard he's right
Contradiction in terms
These rules already exist, this is posturing
There are already people in hospital beds going unfed and uncleaned, because of a lack of nursing staff. This really isn't the time to start putting barriers in front of recruitment and certainly not testing existing staff.
Shock horror, 2 tory pms in a row stick to promises
You live in a different universe.
Your not including Cameron are you?
Nobody cares about that. They just want less Johnny Foreigners on the street.