19 replies to this topic

[bulveye]

http://www.bbc.co.uk...siness-17988159


So what does this mean to me living in the UK? I sometimes get the option of paying for items in Euros rather then £'s.

[questionmark]

bulveye, on 08 May 2012 - 10:16 AM, said:

http://www.bbc.co.uk...siness-17988159


So what does this mean to me living in the UK? I sometimes get the option of paying for items in Euros rather then £'s.

It means that goods from Euro countries will get cheaper in Britain. And that is not good for the job market.

[stevewinn]

bulveye, on 08 May 2012 - 10:16 AM, said:

http://www.bbc.co.uk...siness-17988159


So what does this mean to me living in the UK? I sometimes get the option of paying for items in Euros rather then £'s.

it means - the same as it did two and a half years ago. makes shopping in europe cheaper for us  get more for our money. but its the US dollar and the Australian dollar i favour. i buy a fair bit from the sates and Oz, its only the stupid Euorpean import tax that makes it less of a saving. thanks to the EU protectionism for charging on importing goods from outside the EU.

[keithisco]

Bottom Line?

Eurozone exports will increase substantially, to non-eurozone countries (an almost 10% discount from a month ago). Non - eurozone countries will be hit in their Balance of Trade figures (fewer exports to the Eurozone as the USD and PoundST rises).

In short - the much lauded inability of individual Eurozone countries to devalue their National Currency has been greatly assisted by its apparent weakness on the money markets, such that the entire Eurozone will benefit, at the expense of those outside.

For me it makes no difference because I buy probably 99% of my goods within the Eurozone anyway - it's only those goods with a high content of imported materials that might get more expensive. Having said that, I last week bought a 42" LED 3D tv for just 399 euros! An Asian Import

Edited by keithisco, 08 May 2012 - 06:20 PM.

[itsnotoutthere]

It means my spending money will go a lot further when I go to Greece at the end of July.

[stevewinn]

itsnotoutthere, on 08 May 2012 - 06:32 PM, said:

It means my spending money will go a lot further when I go to Greece at the end of July.

if you play your cards right by the time you go to Greece you may be able to buy the country.

it looks increasingly like greece will not be able to pay back the money we've loaned. but deep down we all knew when we handed the money over we was waving it goodbye. and still the greeks still dont get it ' kick them out'

[itsnotoutthere]

stevewinn, on 09 May 2012 - 09:49 AM, said:

if you play your cards right by the time you go to Greece you may be able to buy the country.

it looks increasingly like greece will not be able to pay back the money we've loaned. but deep down we all knew when we handed the money over we was waving it goodbye. and still the greeks still dont get it ' kick them out'

Shortly to be followed by France it would seem.

[keithisco]

The only problem with the euro is that it was introduced without Political Union ocurring first.

A monetary zone consisting of 17 Sovereign Nations that are unable to deflate the currency in accordance with local economic imperitives, is always going to have tensions and stress internally.

For Germany it is a Godsend - because it could never find a way to devalue its currency based on the strength of its Industrial Output. So with Greece, France, Spain, Portugal, and Ireland, all giving the Money Markets the "Jitters" the rest of the World has handed , on a plate, exactly what Germany wants. Just watch its exports soar!

[questionmark]

keithisco, on 10 May 2012 - 04:15 PM, said:

The only problem with the euro is that it was introduced without Political Union ocurring first.

A monetary zone consisting of 17 Sovereign Nations that are unable to deflate the currency in accordance with local economic imperitives, is always going to have tensions and stress internally.

For Germany it is a Godsend - because it could never find a way to devalue its currency based on the strength of its Industrial Output. So with Greece, France, Spain, Portugal, and Ireland, all giving the Money Markets the "Jitters" the rest of the World has handed , on a plate, exactly what Germany wants. Just watch its exports soar!

But with Sterling going up France and Italy will soon join the growth gang

[keithisco]

Oh yes, I forgot about that... So non eurozone countries will suffer because they have stronger currencies

[skookum]

itsnotoutthere, on 08 May 2012 - 06:32 PM, said:

It means my spending money will go a lot further when I go to Greece at the end of July.

Probably be the Drachma by then,

[itsnotoutthere]

skookum, on 11 May 2012 - 10:50 AM, said:

Probably be the Drachma by then,

Might be worth holding on to those old holiday pesetas & lira too.

[stevewinn]

questionmark, on 10 May 2012 - 05:45 PM, said:

But with Sterling going up France and Italy will soon join the growth gang

First the EU needs to get its house in order, you have the productive northern EU members and the none productive southern members. look at, just look at that a worrying divide that will cripple the north one day you mark my words thats why we've already heard the rumors of the two tier euro zone. never mind the growth gang, what of the shrinking gang or the ant hill mob for that matter.

while the southern members are struggling, battling to keep their heads above the waves the northern members are sitting in the life boats, throwing the odd life ring but never offering the hand, the hand of pulling them in the life boats, what a marvelous union the EU is.

[bulveye]

It was my understanding that Greece need bail out money to pay government employed staff, everything from paper pushers in offices to police and doctors. If they do not receive bailout money then they cant pay wages and people won't turn up for work. Few police and many people with no food mean the crime rate will go up by a massive percentage and eventually plunge the county into anarchy.

[TheLastLazyGun]

questionmark, on 08 May 2012 - 10:29 AM, said:

It means that goods from Euro countries will get cheaper in Britain. And that is not good for the job market.

It makes the backward Eurozone countries cheaper for British holidaymakers.  And that can be considered good news for Spain because if it wasn't for all that money it receives from British holidaymakers its economy would crash and burn.

It makes imports to Britain cheaper.

http://www.economist.com/node/21554205

Of course, the whole reason why Britain's currency is doing well is because we aren't a part of the Eurozone, the Sick Man of the World.

It also suggests that the British economy performed better than expected in the fourth quarter.

Edited by TheLastLazyGun, 14 May 2012 - 01:47 PM.