British pound dumping again, now under $1

[1srelluc]

The pound just plunged to an all-time low against the dollar. Here's why the promise of tax cuts tanked the British currency.​

• The British pound tumbled to an all-time low against the US dollar on Monday.
• It plunged on fears impending tax cuts will worsen inflation and prompt faster interest-rate hikes.
• The UK economy is already battling slower growth and a cost-of-living crisis.

The pound plunged to an all-time low of 1.035 against the US dollar on Monday as traders bet that looming tax cuts could fuel inflation, prompt faster interest-rate hikes, and undermine Britain's already-shaky economy.

The pound just plunged to an all-time low against the dollar. Here's why the promise of tax cuts tanked the British currency.

Strange times.

Edit: It picked back up a bit to $1.07

 

[theHawk]

Wow. The West is falling. Europe is getting wrecked by their own stupidity with Russia.

 

[martybegan]

The pound just plunged to an all-time low against the dollar. Here's why the promise of tax cuts tanked the British currency.​

• The British pound tumbled to an all-time low against the US dollar on Monday.
• It plunged on fears impending tax cuts will worsen inflation and prompt faster interest-rate hikes.
• The UK economy is already battling slower growth and a cost-of-living crisis.

The pound plunged to an all-time low of 1.035 against the US dollar on Monday as traders bet that looming tax cuts could fuel inflation, prompt faster interest-rate hikes, and undermine Britain's already-shaky economy.

The pound just plunged to an all-time low against the dollar. Here's why the promise of tax cuts tanked the British currency.

Strange times.

Edit: It picked back up a bit to $1.07

I'm sure the left wants to blame this on Brexit and Tories being in power, however the Euro is showing the same trending.

https://www.bing.com/search?

So it seems to be more a Europe thing then a GB thing exclusively.




q=euro+vs+usd&cvid=85d4e77f46854e71ac61dd08be83c6b8&aqs=edge.0.0l9j69i11004.2471j0j1&pglt=41&FORM=ANNAB1&PC=U531

 

[Esdraelon]

The pound just plunged to an all-time low against the dollar. Here's why the promise of tax cuts tanked the British currency.​

• The British pound tumbled to an all-time low against the US dollar on Monday.
• It plunged on fears impending tax cuts will worsen inflation and prompt faster interest-rate hikes.
• The UK economy is already battling slower growth and a cost-of-living crisis.

The pound plunged to an all-time low of 1.035 against the US dollar on Monday as traders bet that looming tax cuts could fuel inflation, prompt faster interest-rate hikes, and undermine Britain's already-shaky economy.

The pound just plunged to an all-time low against the dollar. Here's why the promise of tax cuts tanked the British currency.

Strange times.

Edit: It picked back up a bit to $1.07

I think that this is what it looks like when a controlled demolition of the old system is underway. It only gets uglier from here.

 

[alexa]

Wow. The West is falling. Europe is getting wrecked by their own stupidity with Russia.

it isn't Russia. It is Liz Truss's insane economic 'budget'. Even Tories are completely against this.

 

[alexa]

I'm sure the left wants to blame this on Brexit and Tories being in power, however the Euro is showing the same trending.

https://www.bing.com/search?

So it seems to be more a Europe thing then a GB thing exclusively.




q=euro+vs+usd&cvid=85d4e77f46854e71ac61dd08be83c6b8&aqs=edge.0.0l9j69i11004.2471j0j1&pglt=41&FORM=ANNAB1&PC=U531

Regardless we know what has caused the current decline and what was happening is not a Europe thing.

 

[martybegan]

Regardless we know what has caused the current decline and what was happening is not a Europe thing.

Both currencies are falling against the dollar, even with our own inflation issues.

The Pound is acting like the Euro, but you would rather make it a Brexit thing and not the real reason, bullshit green policies leading to an energy crisis in ALL of Europe.

The greens can never be wrong I guess to SJW lefty hacks.

 

[shockedcanadian]

The British, who exported their system to Canada (thankfully, the U.S influenced us also, so we did adopt some capitalism, though we lack the spirit and the freedom needed); are learning a vital lesson in global economic in 2022. To be honest the desire to devalue the pound might even be intentional to drive and encourage foeign investment in their dismal manufacturing sectors, I don't know. I am surprised she is going to heavily borrow and "stimulate" while also deeply cutting taxes.

If you do not innovate, develop, create and manufacturer consumer products, you are producing very little value in the economy. The British have basically been a big bank and trading centre. America, Japan, Germany and now China are nations that innovate (even as some innovate through theft and reverse engineering), while the British have refused to adapt. You can't just print money and reward the same, old boys club and expect success, nor a strong currency.

They also have some brain drain though not nearly as high as in Canada police state. Regardless, when you stifle talent and reward, old, unimpressive people whose only contribution is shifting money around, you deserve the expected outcome. See Canada over the last 40 years.

 

[alexa]

Both currencies are falling against the dollar, even with our own inflation issues.

The Pound is acting like the Euro, but you would rather make it a Brexit thing and not the real reason, bullshit green policies leading to an energy crisis in ALL of Europe.

The greens can never be wrong I guess to SJW lefty hacks.

Well everyone in the UK is putting it down to the mini budget on Friday because it started then and nobody expects it to do anything other than destroy us economically though some people believe it may give a short burst of money then it will be downhill completely. We are in a financially dreadful position anyway and to some extent that could be said to be to do with the war with Russia - though with the UK not because of Russian gas as in the main we use our own. Fuel Prices have of course gone up enormously and instead of demanding a windfall tax from those who are making an insane profit, the government has said the British people will need to pay no more than roughly twice last years. Tha.t for a lot of people will be too much and the people of the UK are then going to have to repay this which possibly comes from a mistake of the Tories anyway. Then food prices have gone up I would say about 20 or even thirty percent -a lot of people are finding it hard to get enough food and do not want anything except what they can put in the microwave. In this the Chancellor decides to stop the top rate of tax. This will only help the 1% but will be billions which people's children will need to pay off. Interest rates are expected to go up significantly which will make a lot of people homeless as they will be unable to pay their mortgages. So the pound dropped. Some could certainly be to do with Brexit where they failed to make a deal and where for a time no other than Liz Truss was in charge of so doing. I have heard people suggesting that in this decade the UK standard of living will be lower than poor Eastern European ones and we have discovered we may not even get loans but assuming we do they will be very expensive.

 

[martybegan]

Well everyone in the UK is putting it down to the mini budget on Friday because it started then and nobody expects it to do anything other than destroy us economically though some people believe it may give a short burst of money then it will be downhill completely. We are in a financially dreadful position anyway and to some extent that could be said to be to do with the war with Russia - though with the UK not because of Russian gas as in the main we use our own. Fuel Prices have of course gone up enormously and instead of demanding a windfall tax from those who are making an insane profit, the government has said the British people will need to pay no more than roughly twice last years. Tha.t for a lot of people will be too much and the people of the UK are then going to have to repay this which possibly comes from a mistake of the Tories anyway. Then food prices have gone up I would say about 20 or even thirty percent -a lot of people are finding it hard to get enough food and do not want anything except what they can put in the microwave. In this the Chancellor decides to stop the top rate of tax. This will only help the 1% but will be billions which people's children will need to pay off. Interest rates are expected to go up significantly which will make a lot of people homeless as they will be unable to pay their mortgages. So the pound dropped. Some could certainly be to do with Brexit where they failed to make a deal and where for a time no other than Liz Truss was in charge of so doing. I have heard people suggesting that in this decade the UK standard of living will be lower than poor Eastern European ones and we have discovered we may not even get loans but assuming we do they will be very expensive.

What "insane profits"?

 

[alexa]

What "insane profits"?

OK we do not get our Gas from Russia so that is not our problem. However our Gas has been going up just like Europes so we have to question why that is. I'm unsure who I heard this from. It could have been Martin Lewis but it easily might not. The Government had been telling people to become involved in the energy market, telling us that this would result in lower prices which it didn't.

You have people all of whom are selling energy. They are not the oil firms. They do not own the energy and they got out of pocket last year when the price rose leading to a lot of them having to sell out. They were taken over by the ones who were there first who have plenty of money. Since then the price of energy has stabilised but we are being sold it at these very high prices which makes the firms have enormous profits

That is as good as I can give on the mechanics of things. We seem to be paying for our own gas. "Yanis" Varoufaki thinks it is all a scam. Energy companies making massive profit on sale of energy at much higher price than it takes to produce. People cannot afford this and the Government is suggested it give them a 'windfall tax' which was done before. Government won't so needs the borrow the money to pay for that and tax cuts for the 1%

 

[martybegan]

OK we do not get our Gas from Russia so that is not our problem. However our Gas has been going up just like Europes so we have to question why that is. I'm unsure who I heard this from. It could have been Martin Lewis but it easily might not. The Government had been telling people to become involved in the energy market, telling us that this would result in lower prices which it didn't.

You have people all of whom are selling energy. They are not the oil firms. They do not own the energy and they got out of pocket last year when the price rose leading to a lot of them having to sell out. They were taken over by the ones who were there first who have plenty of money. Since then the price of energy has stabilised but we are being sold it at these very high prices which makes the firms have enormous profits

That is as good as I can give on the mechanics of things. We seem to be paying for our own gas. "Yanis" Varoufaki thinks it is all a scam. Energy companies making massive profit on sale of energy at much higher price than it takes to produce. People cannot afford this and the Government is suggested it give them a 'windfall tax' which was done before. Government won't so needs the borrow the money to pay for that and tax cuts for the 1%

Since gas is a global market and is fungible, lack of supply in one area stresses out the entire system if the rest of the producers can't replace said suppy.

 

[alexa]

Since gas is a global market and is fungible, lack of supply in one area stresses out the entire system if the rest of the producers can't replace said suppy.

let me just give you a link to an article on our gas suppliers and how much money they have made while the price has been rising for all kinds of reasons

How well are energy companies doing?​

The headlines have been dominated by Shell, BP and British Gas owner Centrica as they have announced bumper financial results.

Last week, BP revealed second-quarter profits more than trebled to a 14-year high. The oil giant reported underlying replacement cost profits – its preferred measure – jumping to a far better-than-expected £6.9 billion for the three months to June 30, up from £2.3 billion a year ago.

A week earlier, Centrica’s half-year profits soared five-fold to £1.3 billion, while Shell achieved a record second quarter result as adjusted earnings hit nearly £9.5 billion.

These are multi-faceted companies where selling energy to consumers is only a small part of the business.
he UK’s other big energy suppliers include:

E.on UK: In the first six months of the year the business made adjusted earnings before interest and tax (Ebit) of £245 million in the UK, up 77% on the year before.

EDF Energy: The company made earnings before interest, tax, depreciation and amortisation (Ebitda) of £728 million in the UK in the first six months of this year.

It was a rise of more than 200% compared to the £226 million in the same period a year ago.

Most of this was because EDF produced more electricity from its nuclear plants in the country. It was partly helped by higher prices of the energy it sold to businesses, but was weighed on by the sale of energy to households.

Octopus Energy: The company’s last set of numbers shows it managed to halve operating losses from £63 million to £31 million in the year ending April 30, 2021. It took a £150 million hit to help customers through the energy crisis.

ScottishPower: In the first six months of 2022 the business made an Ebitda of £924.6 million – a rise of 2.6%. Most of that was thanks to a jump in the money its wind turbines and other renewable generation made from selling electricity.

The company’s retail business, which sells energy to customers, made £54.3 million in Ebitda over the period, a reduction of 60%.

Why Are Energy Bills Rising When Suppliers Are Making Record Profits?

The contrast between the pain felt by consumers and the record earnings of oil and gas giants explained.

www.huffingtonpost.co.uk

 

[martybegan]

let me just give you a link to an article on our gas suppliers and how much money they have made while the price has been rising for all kinds of reasons

Why Are Energy Bills Rising When Suppliers Are Making Record Profits?

The contrast between the pain felt by consumers and the record earnings of oil and gas giants explained.

www.huffingtonpost.co.uk

LOL hufflepuffle.

I looked up Exxons profits in 2021, and they were around 6% gross revenue. Not excessive at all.

 

[theHawk]

it isn't Russia. It is Liz Truss's insane economic 'budget'. Even Tories are completely against this.

What a joke. A budget dispute in the government does not effect the pound in such ways. Europe and UK’s economies are being destroyed because everyone has to spend so much more on energy bills, so there is no spending on anything else. Total disaster, all because you idiots wanted to listen to a girl screaming about climate hoax.