miltiades wrote:Paphitis wrote:miltiades wrote:Currencies have been and always will be the barometer of a nations economic prospects. Its a fact.
You couldn't get anymore stupid!
If that is indeed the case, Cyprus should have been the best economy in the world when it had the Pound which was one of the dearest currencies in the world.
That was not the case. USA, Australia, Germany, NZ, Canada and I could name dozens more, had stronger economies, higher GDP, and more trade.
Currencies ARE NOT A BAROMETER.
Australia's AUD is currently sliding but it's GDP still growing. Maybe for not too much longer but its growing. When it goes into negative territory, it won't ever be as bad as the EU which was already in negative territory before Coronavirus.
The barometers are:
1) GDP growth
2) current account deficit/surplus
3) Job market growth
4) unemployment rate
All the things you choose to ignore because the figures don't suit your agenda.
If you took the above things into consideration, then you couldn't slander BREXIT.
All the factors you stated are relevant to a nations currency . The analogy you offered for Cyprus is laughable !!
The UK was the world's 5th largest economy but that was before Brexit. A week currency will inevitably increase the cost of our imports, and we import more than we export, therefore prices will increase especially our food imports.
No it isn't laughable at all.
And to top it all off, there are third world countries and other developing countries with Pesos and yet they are growing up to 8%. Ergo, a healthy and expanding economy.
And no, currency has absolutely zero to do with the economy and many countries like China, Japan and Australia regularly devalue it to make their products more competitive on the international stage.
And you as always are only looking at one side of the equation. Yes it well make imports more expensive. But it also makes their exports cheaper, thus offering a boon to exporters, and manufacturers which is exactly the reason WHY some countries like to devalue their currency.
For example, the USA would friggin implode if the USD was the same value as the Cyprus Pound was, so their Federal Reserve found their little happy place where imports are not too expensive and at the same time they can sell their exports overseas. It's also very helpful to the tourism and hospitality industry. Not that many people will be traveling now but normally it would be good for tourism. It also discourages Brits from holidaying overseas and instead holiday in the UK, thus assisting their local economy.
What is the catch all indicator once again, is GDP Growth, and employment and job statistics as well as wage growth and inflation. Yet you ignore all of that and only look at the value of the currency during these very uncertain times.
