OK you brains out there, a fiscal question.

1) We were told we are the 4th largest economy in the world.
2) We are told there is a mighty big recession in the States, that Germany and France etc. are in recession with most of the rest of the world.

They why, is the Pound sinking against the Dollar, the Mexican Peso and even the Euro (which is backed by no end of dubious economies)?

 

Another financial question

How does Israel make all the money it spends on military matters ? what is the basis of their economy ??? does it have oil ?

 

RE: Another financial question

Thats easy, money from the USA and I believe the UK also contributes.</p>

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RE: OK . another one to throw into the pot.....

How does a weak pound help us? the TV News Economic experts keep telling us how it helps UK 'exports' The problem there is that under queen bitch...err sorry....Maggie Thatcher... the UK sacrificed industry and manufacturing by putting all our eggs in one basket and building up the financial sector thus boosting invisible earnings. Even before the financial sector meltdown, we were net importers of goods. Now the financial sector has collapsed, we have little manufacturing base, and even where we do we import most of our raw materials. Within the Eurozone most of the household stuff we buy in the UK is Italian or German. Much of the rest comes from the Far East.

So I say again, how does a weak pound help? Are we screwed or what?!!

 

No Electronics Manufacture in the UK???

That's funny, I wonder where I have been working all these years. The company I work for has been designing, manufacturing, selling, marketing and creating jobs in Barnsley for over 25 years.

I presume you mean large electronic manufacturers. There's hundreds of small electronic manufacturing companies in the UK.

 

We must be one of the exceptions then!

http://www.abielectronics.co.uk/CEM/index.php

I know of a few others but as you say a lot outsource to Asia.

 

RE: No Electronics Manufacture in the UK???

I'd be interesting to know how many components i.e. Semi conductors, ICs etc. are sourced in the UK. I bet most of those raw materials come from the far east.
I agree we do have innovative creative small companies in the UK but given our current education system (how many Journalists and Media Graduates do we REALLY need?) and the amount of GDP the emerging countries and China are putting into their education systems, particularly around sciences, how much longer will that last?

 

Don't get me started on the education system.

Almost agree, but the courses ARE there for people to study engineering if they want to. As I understand it though the subject is not fashionable so few people choose them, and (IMHO) the courses often churn out so-called "engineers" who are, bluntly, useless. I've met many graduates, some with more degrees than a thermometer, who have had little to offer in the way of creative design.

Anyway it's New Years Day so don't want to rant on about this all afternoon! Happy New Year everybody!

 

RE: Because

Now,Thats what i call,a zero,zero,
Happy New year

 

We make thousands of cars

I know its via foreign companies but they are made here and should assist their export. Buying in VW,BMW, Mercs, Porcsh KIA, Mazda, is massively dearer and although car sales are down the higher cost may persuade people to buy British manufactured cars as their price could be reduced.

Sure there are other areas like Holidays, might sway a lot to spend them in UK and that money will stay here.

 

As farnham said, it is mainly due to interest rates - because ours are lower than most, large scale banking investment from overseas is drying up, and so, to put it simply, if people aren't using their dollars, yen, euros, or whatever to buy sterling and stick it in a british bank because of the crap interest rates on offer then, according to the standard 'law' of supply and demand, if demand for anything falls, without a corresponding fall in supply, the price falls.

Another reason why overseas investment in the country is drying up is that overseas institutions are nervous about the prospects for the british economy in comparison with others so they worry that the pound will sink further, eating up the investment returns they would make if they were to buy sterling and stick it over here.

vicious circle and all that.

 

But both Japan and the US have near zero percent inflation rates