why is the pound dropping so fast

Discussion in 'Economics' started by morganist, Dec 10, 2008.

  1. the pound is dropping so fast.

    there are various reasons for this

    1. less people are purchasing pounds i.e. britain is selling less to other countries.

    2. the increase in liquidity is creating a surplus of supply.

    3. people are not investing in britain because they think it is going down the pan.

    what do you think the reason is for such a great decline so fast is it one of the above if so which one and if all which is the main one and is there any other reason.

    thank you for your comments.
  2. I was thinking maybe the oil crash has something to do with it as well.
  3. yes i would agree but oil prices are falling now and have been for a while. i know that the pound has dropped against the dollar due to oil as all oil is bought with dollars so if oil prices fall the amount purchased should increase so the dollar would become stronger however this does not explain the drop in the pound against the euro.
  4. Pound has fallen from 1.90 to 1.48 over the last 4 months and from 2.10 over the last 12 months and NOW you post this.

    The pound has stopped falling recently. I'd be far more interested to know what will happen over the next few months rather than hearing one of a thousand reasons why it has already fallen.
  5. Brutally honest and blunt answer is: Every thing is fucked. Everywhere!
  6. Shaqi


    Interest Rates discounted in price to zero %
  7. People getting fired,house prices collapsing,bills going up,it appears that even the most unlikely people are having to make lifestyle adjustments


    "Does one want fries with that?"
  8. This reminds me of a time I went to a McDonalds where a dumb blonde was taking my order, and I said "I forgot to ask, can you make those fries low calorie?" She replied "Yes I can", she stood at the register for at least 2 minutes looking for the 'low calorie' button. Until she asked her manager and he just smirked at me.

    Come to think of it, I think the name tag of the order taker read "Stock Turder"
  9. I edited the picture for you so that its more clearly depicts the poor ol' McDonalds worker. Click my attachment for enlightenment