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The Pound takes a hammering ..... again!

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Re: The Pound takes a hammering ..... again!

Postby Paphitis » Wed Oct 05, 2016 6:22 pm

Btw, reducing interest rates is what independent countries like Britain, USA, Kapan and Australia can do when it suits them because they have their own Central Banks making these decisions to control inflation or stimulate a dormant economy.

Non independent countries like Greece and Cyprus don't have that luxury. Germany makes the beds you sleep on my friend. :lol:
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Re: The Pound takes a hammering ..... again!

Postby Paphitis » Wed Oct 05, 2016 6:25 pm

Maximus wrote:No Dude,

Central banks reduce interest rates to encourage loans to make investments, to encourage spending.

Stimulas programs are designed to stimulate the economy. Just like a doctor would try to revive a dead body back to life by stimulating it with electricity.


Yes and the entire planet is in this phase not just Britain.

Britain is not immune.

Every country is reducing interest rates to stimulate the economy and encourage spending. And Britain is responding and performing very well. It's a pretty rock solid economy and one of the best performers globally.

Stimulating the economy and encouraging spending is something Cyprus doesn't have the luxury of being able to do because that impacts Germany's exports.

What you get is austerity instead.
Last edited by Paphitis on Wed Oct 05, 2016 6:27 pm, edited 1 time in total.
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Re: The Pound takes a hammering ..... again!

Postby Maximus » Wed Oct 05, 2016 6:27 pm

Paphitis wrote:
Maximus wrote:No Dude,

Central banks reduce interest rates to encourage loans to make investments, to encourage spending.

Stimulas programs are designed to stimulate the economy. Just like a doctor would try to revive a dead body back to life by stimulating it with electricity.


Yes and the entire planet is in this phase not just Britain.

Britain is not immune.

Every country is reducing interest rates to stimulate the economy and encourage spending. And Britain is responding and performing very well.

Stimulating the economy and encouraging spending is something Cyprus doesn't have the luxury of being able to do because that impacts Germany's exports.


So basically you agree now that the UK economy is not going so great. :?
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Re: The Pound takes a hammering ..... again!

Postby Paphitis » Wed Oct 05, 2016 6:29 pm

Maximus wrote:
Paphitis wrote:
Maximus wrote:No Dude,

Central banks reduce interest rates to encourage loans to make investments, to encourage spending.

Stimulas programs are designed to stimulate the economy. Just like a doctor would try to revive a dead body back to life by stimulating it with electricity.


Yes and the entire planet is in this phase not just Britain.

Britain is not immune.

Every country is reducing interest rates to stimulate the economy and encourage spending. And Britain is responding and performing very well.

Stimulating the economy and encouraging spending is something Cyprus doesn't have the luxury of being able to do because that impacts Germany's exports.


So basically you agree now that the UK economy is not going so great. :?


No. It is doing great with 5.4% unemployment. It's doing very well.

Not many countries that can boast a lower unemployment rate.

Australia has 5.6% unemployment and this is the economy lauded as the best in the OECD.

In other words, they are getting through the GFC headwinds better than anyone.
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Re: The Pound takes a hammering ..... again!

Postby Robin Hood » Wed Oct 05, 2016 6:43 pm

Today you have made 11 posts and in all that waffle you have not once mentioned wealth creation i.e. Jobs and manufacturing industry ! Everything has been based on making money through markets, Investment and speculation.

I agree with much of what you say BUT ....... you still do not understand money! You have related everything to making money i.e. The Financial Economy, you have ignored the most important thing .......... that being the Real Economy.

The banking system you seem to revere so much is on the skids .......it is in chaos and they don't know the way out of it ...... check the news! The EU is in serious trouble in the banking sector that has vast debts that are unsustainable and an economy that is stagnant. Something has to give ...... hear comes the 'Bail-In' that will make Cyprus' haircut seem like an eye brow pluck!!!! :roll: :wink:
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Re: The Pound takes a hammering ..... again!

Postby Maximus » Wed Oct 05, 2016 6:52 pm

You keep referring to unemployment but we have already established that that alone does not tell us the whole story. You have just found one economic indicator that is good and you're hammering it to try to win a debate. Put it in to context, the UK employment figures has not managed to win it for the economy. If it did, Carney would not be doing what he is doing.

Unemployment has been falling but the UK's current account deficient has been widening. What does that tell you?
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Re: The Pound takes a hammering ..... again!

Postby Robin Hood » Wed Oct 05, 2016 7:51 pm

Maximus wrote:You keep referring to unemployment but we have already established that that alone does not tell us the whole story. You have just found one economic indicator that is good and you're hammering it to try to win a debate. Put it in to context, the UK employment figures has not managed to win it for the economy. If it did, Carney would not be doing what he is doing.

Unemployment has been falling but the UK's current account deficient has been widening. What does that tell you?


Just 'figures' regarding employment mean nothing. If you are replacing lost jobs in industry and manufacturing with service jobs or in retail, then although there maybe fewer unemployed the pay and skill level is lower.

Carney is or has already pumped another £70bn into QE. I believe this has been given to the banks on the condition that most of it will go to SME's and start-ups. Some how I think that is wishful thinking.

Paphitis has explained how the financial system can be used to make money but, it is far more important that the UK rebuilds its industrial and manufacturing sector to be more internally sustainable and starts people spending into the economy.

IMO: The banks and financial sector create very little wealth. Some say the Government makes a lot of money from them in taxes? Maybe so but, that money has never been in the economy! It is taken out before it can be spent and used to repay loans to the banks!

The UK will come out of this much stronger in the long run and the pound will recover but I think we will see this happen not so much because the UK becomes a power house like Germany but because the whole global economy seems to be in a mess and we have already started to build our defences up ..... because we are leaving the sinking ship against The Captains wishes ! :roll:
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Re: The Pound takes a hammering ..... again!

Postby miltiades » Wed Oct 05, 2016 8:36 pm

Robin:
"we are leaving the sinking ship against The Captains wishes ! "
Indeed we ...are, we jump in the dark seas and we drown. Robin, the dire consequences of the decision by the little Englanders and the geriatrics on June 23rd will haunt us for years to come.

The pound is tumbling, many small businesses , such as mine, are feeling the effects already. Sooner or later big businesses will also feel the pinch.
I'm involved in business daily, 6 days a week, I can see how similar small businesses, the backbone of the British industry are suffering. Well at least out NHS is now ....better off to the tune of bullocks per week. :lol:
By the way how is your pension money, are you happy receiving almost 15% less euros than before the geriatrics voted out.
Mate, this is by far the worst decision taken by the nation in a generation, the repercussions will be severe in the not too distant future.
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Re: The Pound takes a hammering ..... again!

Postby GreekIslandGirl » Wed Oct 05, 2016 8:48 pm

Every day, more and more iron bars go up. Brits are trapped in and "others" are trapped out.

Meanwhile slave labour continues to rise as the biggest form of employment (1 Million and rising are the modish ZERO hour contracts, yeah) leaving the average household beholden to borrowing from banks (yipee) to survive or scrounging from (ever increasing) food banks to sustain their families (tralala).

Never mind - British soldiers can now kill at will and will be exempt from 'human rights" dilemmas (wowee) and get off Scott free whatever they do abroad (phew!).

And finally, if you're a foreign student expecting to pay good money for some much-touted British education - Theresa May says FUCK OFF FOREIGNER!

Poor, poor Brits! Will no one come to save them from the fascist regime ....
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Re: The Pound takes a hammering ..... again!

Postby Paphitis » Wed Oct 05, 2016 10:01 pm

Robin Hood wrote:Today you have made 11 posts and in all that waffle you have not once mentioned wealth creation i.e. Jobs and manufacturing industry ! Everything has been based on making money through markets, Investment and speculation.

I agree with much of what you say BUT ....... you still do not understand money! You have related everything to making money i.e. The Financial Economy, you have ignored the most important thing .......... that being the Real Economy.

The banking system you seem to revere so much is on the skids .......it is in chaos and they don't know the way out of it ...... check the news! The EU is in serious trouble in the banking sector that has vast debts that are unsustainable and an economy that is stagnant. Something has to give ...... hear comes the 'Bail-In' that will make Cyprus' haircut seem like an eye brow pluck!!!! :roll: :wink:


Understand money? What is there to understand other than the fact that money is a commodity. It doesn't have to exist as long as the Banks can maintain their ratios and keep up with money supply. That is the bottom line.

It's a rational system and it is that which has created substantial wealth creation and jobs.

That is it!
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