Looks like the media are beginning to soften us up...

...for another round of quantative easing. Exporters are, apparently, beginning to whinge about the 'inexorable rise" in the pound against the dollar and the Euro etc as the poor dears will soon have to "do something about their pricing" and it will affect profits. Sorry but whichever way you slice it, and you can come up with all the fancy Economic theory you want but if UK ltd is a NET IMPORTER then surely a strong pound means overall we, as an economy, gain.
Furthermore many of these manufactures omit to say that the cost of the raw materials and parts used (plus energy and fuel), many sourced from abroad become cheaper for the same reason. It is disingenuous to claim that a 10% increase in the pound is reflected by a similar amount in a fall in profits. The retail sector benefits since imported produce is cheaper. Since manufacturing involving exports is proportionately lower across the economy, whilst there are winners and losers we are surely better off with a stronger currency (within reason). Businesses always find something to moan about! Rant over

 

I think what you have to ask there, Tekktyke is does this government want us all to benefit from cheaper imports or does it want it's business chums to do better? As a clue to that, you only have to look at the steady erosion of employment rights and the measures taken to make it more difficult to enforce them. This is a very divisive government, and the divisiveness has been masked by having a coalition partner which has very rarely used it's effective veto.

 

Spot on Tekky. A strong pound means we get loads more foreign stuff in return for our English stuff. That's a great deal.

 

Businesses have short memories, conveniently for them.

A few years ago the pound was above €1.60 and we all thought that was normal. Then it went down to almost parity and beer in Austrian après-ski bars got really expensive.

Now it's €1.26, nowhere near its former value. They want everything, poor dears.

 

I remember the days before the Euro when the Deutschmark was at 3.4 to the pound or so - that's equivalent to a Euro rate of €1.70. As you say it's all relative and evens itself out over time. However, since beer is by far the largest component of overseas holiday expenditure, any fall in the value of the pound can have a devastating effect.

 

Agreed. I love snow.