What Would Thatcher's Government Have Done About the Plunging £

Why does anyone need the pound? Surely the pound is just a brand, like HBOS, or Britishness.

New Labour will always use whatever brand will get stupid punters to vote for them.

Nothing!

As the lady said "You can't buck the market"

Under the present circumstances, how would a strong pound help?

Look at Ireland.

We know what Norman Lamont did to try and prop up the pound, and it was a disaster. That's why NuLab is doing nothing, it is about the only thing they've got right.

On Mon, 08 Dec 2008 18:00:03 +0000 'Maria' wrote this on uk.politics.misc:

The normal action is to raise interest rates and possibly cut spending to reinstate confidence in the markets.

With interest rates being slashed and spending rising, it had to be the pound. Something had to take the strain...

The next thing to look out for is more inflation...

Brown's desire to impoverish people is on course.

On Mon, 8 Dec 2008 11:35:20 -0800 (PST) 'Mel Rowing' wrote this on uk.politics.misc:

There is NEVER a time when a weak currency is beneficial.

It encourages poor productivity and raises inflation, at the possible benefit of reducing export prices.

No thanks.

Well, considering there are a number of well respected economists out there who are saying something which amounts to 'there's nothing you can do, the market has to correct itself', I would hazard a guess that there's nothing politicans can do, irrespective of their political allegiance.

once you've shot your rabbit......skinned it and cooked it...

it gets a bit difficult to get it to frolic in the meadow...

all socialist 'new' labour is built on blather...there is no substance never has been never will be....

snake oil salesmen

regards

Under normal circumstances perhaps.

We are in recession a consequence of which is that productive capacity is under used (there's surely nothing less productive than that) This under use of capacity should take care of both these problems during the downturn phase.

Come the recovery, interest rates will have to rise again and this will strengthen sterling towards former levels.

The alternative is to raise interest rates and force up export prices to make goods and services we will have difficulty in selling anyway harder to sell still.

Well as the UK is a net importing country it should.

Indeed, but we aren't in a normal situation

Yes because the 'recovery' accent is being put on spending and borrowing easily. Not sure its a good idea myself but we'll see. In the meantime the pound can go hang if you like; it'll mean more expensive imports so if people do spend they'll be more inclined to buy British

Why?

Poppycock.

Are there any 'well respected economists' these days? In most people's eyes they were the ones, finally, who created the shit that has just hit the fan.

So you're a member then?

you still don't understand the differences between monetary policy, politics and reality

incredible....can't you even work that out for yourself

shame that's the very best you can manage

Neither, it seems, do economists...

unfortunately that is often true

So to be a net importer is a desirable situation to be in?

You just don't get it do you?

It doesn't seem automatically undesirable to me, in a complex world. More neutral than anything.