THERE ARE NO BRAKES ON THE TRAIN TO POUND TOWN

Nude_Bikergirl
Nude_Bikergirl

THERE ARE NO BRAKES ON THE TRAIN TO POUND TOWN

PackManBrainlure
PackManBrainlure

It's like ethereum for grown ups!

Supergrass
Supergrass

What's so horrible about a lower pound anyway?

BlogWobbles
BlogWobbles

@Supergrass

just Veeky Forums being wannabe economists, havin no logic and immediately assume a lower pound always = bad.

StonedTime
StonedTime

@BlogWobbles
the fucking world is assuming that atm. this low pound can only be good for british industry

TechHater
TechHater

From the thumbnail I thought this was an ETH thread.

Illusionz
Illusionz

@Nude_Bikergirl
i-i-i-i-*BOOM*

King_Martha
King_Martha

@StonedTime
muh exports

People forget that most of our manufacturing industry relies on imported raw materials which are now a lot more expensive. And we import more than we export.

Inmate
Inmate

@Supergrass
New lows in exchange rates affect the economy in many ways.

Wish I held onto my GBPJPY position, too scared to rejoin

kizzmybutt
kizzmybutt

Buy volatility etfs, niggas

Deadlyinx
Deadlyinx

@kizzmybutt
such as?

Methnerd
Methnerd

@Deadlyinx
Tvix

Methshot
Methshot

@TechHater
lmao same

DeathDog
DeathDog

I bet the globalists did this

Spazyfool
Spazyfool

@StonedTime
the world is making these retarded assumption, just trust Veeky Forums, user
buy ETH, user
Trumpcoin is going to the moon, user

RavySnake
RavySnake

@DeathDog
It was actually

King_Martha
King_Martha

@Inmate
I feel you

Garbage Can Lid
Garbage Can Lid

The Pound is already over inflated, and has been for years.

And isn't it hilarious how you goys scream about this, yet ignore the Euro's massive collapse that happened a few years ago which still hasn't recovered?

takes2long
takes2long

f

Lord_Tryzalot
Lord_Tryzalot

@Garbage Can Lid
ignore the Euro's massive collapse that happened a few years ago
because nobody cares about Greece anymore

Emberfire
Emberfire

Try playing $SPX options on expiration. Just look at that joocy delta.

RumChicken
RumChicken

@StonedTime
This.

If anything, they will want to keep it low for a few years. High GBP would fuck them up the arse at this point. just look at the japs if you want a reference.

askme
askme

@King_Martha
Steel so cheap that the domestic industry doesn't exist anymore.

Socially the UK is a third world country but they have enough money to deal with the lower value.

RavySnake
RavySnake

For some retarded reason everyone is assuming that a cheap pound is great for the UK, which begs the question: Why didn't they artificially depreciate it if it's so good?

On the one side, a cheap pound is good for British exporters because cheaper exports means more people will buy the exports. This is especially good because the pound has deprecated more against the US dollar than against other currencies, and the US is the UK's largest export target. The account deficit could be ameliorated on account of more people wanting to buy a cheaper pound. Furthermore, the Bank might slash interest rates, allowing an attractive opportunity for the government to borrow and invest in infrastructure prospects.

On the other hand, the UK imports more than it exports, by about $191 billion. This trade gap is actually the largest it's been in some time, which is bad because of the depreciating value of the pound. Cheaper pound means more costly imports, after all. This is further compounded by the fact that, even to EU trading partners, the UK imports more than it exports, by about 7.1 billion pounds, and 9 of its top 15 import partners are EU members. Also, the weakness of the sterling and the now essentially flat yields is going to make international investors skeptical and even scared of the UK, with most people expecting the country to enter a recession soon thanks to this Brexit vote.

Until new trade deals are negotiated, I don't think the cheaper pound is good for the UK. Thanks to its status as a net importer, it will be feeling some pain for a while.

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