Rentahamster
Rodent Whores
Rest assured, I'm the terriblest you'll ever find.
But please tell me, how is wanting to spend money at local London business and doing what I can to inject some cash into their economy morally questionable?
The British Pound is now trading at its third lowest value to USD since 1791
- Thread starter WedgeX
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Rest assured, I'm the terriblest you'll ever find.
But please tell me, how is wanting to spend money at local London business and doing what I can to inject some cash into their economy morally questionable?
FleckSplat
Member
Why not just say lowest since actual year instead of third lowest since farther back year? Sensationalistic headlines are lame.
SwiftDeath
Member
I think it hit 1.31 $/GBP today.
Sitting at 1.32 $/GBP right now.
Very close to hitting lower than the All-time low in 1985 of 1.3 $/GBP
Sitting at 1.32 $/GBP right now.
Very close to hitting lower than the All-time low in 1985 of 1.3 $/GBP
NeOak
Member
Lovely Salsa
Banned
We need it to go down little more. Then we can start purchasing real estate in London
SwiftDeath
Member
It's quite ironic that a lot of the reasoning for Brexit Leave voters was immigrants/refugees xenophobia and their direct actions to leave the EU is killing the GBP which makes foreign investment in real estate in their country more and more attractive.
Russian oligarchs are going to own blocks and blocks each in london at this rate.
Bam Bam Baklava
Member
Someone could probably write a 2000 page textbook about ways in which this was either directly counter intuitive to their goal or just self-damaging for no reason.
NeOak
Member
SwiftDeath
Member
It really is something. Leave voters just seemed like they voted out of anger/frustration without a real plan of action on how it would actually benefit them
Yeah, I'm sure you're right that a lot of the wealthy Chinese trying to get their money out of China before that bubble truly bursts will now go ham in London. Still think Russian oligarchs will also be increasing their investment too though as they already own a lot of the good residences already.
foxuzamaki
Doesn't read OPs, especially not his own
Does that mean japan can get back on top again like the 90s and early 2000s?
The Russians already do.
campfireweekend
Member
Nah, a strong yen is making the Bank of Japan seriously sweat. This is the last thing their economy needs.
Bruce Springsteen
Member
I need to go to London soon, going be one hell of an exchange rate
Link
The Autumn Wind
But Russians are white, so it's cool.
No, Japan's been trying to devalue their currency. The value of the yen going up actually hurts japan's economy, ironically, which is why the Nikkei crashed the moment Brexit happened.
Principate
Saint Titanfall
Yen is an export economy not an import one, it's better for them to have a weak yen, which is why they're shutting bricks and stopped trading last week.
foxuzamaki
Doesn't read OPs, especially not his own
so are poles. we're back to discriminating between good and bad whites in the uk.
Stocks are crashing so investors move their money into bonds, thereby increasing the value of the yen, thereby causing stocks prices to crash. The same thing is happening in American stock markets except that their stock values are less tied to the value of the dollar.
Come to Brixton, we'll take all of your dollars.
NeOak
Member
Your export goods become cheaper to stronger currencies, so more are bought and more money enters the country.
NeOak
Member
This made me laugh out loud. Holy shit.
They rely on exports.
So they would want a weak currency at home vs. the world where their products are sold. So if they can make a product for 10 yen and sell it in the US for 10 dollars, bringing home those 10 dollars at 1:1 would yield 10 yen and no profit, but at 5:1 exchange rate they can bring home 50 yen and a near 400% profit. The weaker the yen (vs the target currency) the better.
The reverse works for a country relying on imports. And of course it all varies on internal cost of living and salaries and so forth. Ideally you have an economy that exports high end goods (cars, computers) but does not import basics (food/fuel). Thus you get home grown "cheap" necessities for the population, and have high quality education, jobs and make high quality export products.
campfireweekend
Member
Weak currencies are beneficial to major exporters. This is one of the major reasons the euro is so beneficial to Germany, as it as a currency is much lower than a theoretical German mark would be, allowing Germany to be an exporting powerhouse off the backs the less advanced European countries.
The reason Japan's economy stalled is complicated, but with that stalling came deflation, which means their currency kept appreciating in value. This is bad, because if your currency keeps appreciating, people are just gonna save their money, because why spend money that's gonna be worth more tomorrow. This glut in consumer spending led to the lost decade, and their current troubles.
Recently, the BoJ has been trying to depreciate the yen, through various measures, such as negative interest rates and quantitative easing. This seemed to be sort of working, but not really. The BoJ at this point has pretty much used every tool in their arsenal to spur inflation. Now this exogenous shock occurs. The yen is appreciating, and there's nothing they can do to stop it, unless they want to make interest rates even more negative, and who knows if that'd even work.
foxuzamaki
Doesn't read OPs, especially not his own
Thanks for the explanation guys, im guessing they didnt always have this economy? Since in the 1800s they shut themselves off from the rest of the world.
campfireweekend
Member
Opening up their economy is what allowed they to become the economic superpower that they still are. I mean, they're still the third largest economy in the world, and that's damn impressive considering their population and lack of resources.
Really, Japan is on the forefront of what many advanced economies may go through one day due to changing demographics. Germany has a lower fertility rate than Japan, the only reason it's more problematic in the latter is due to an unwillingness to welcome immigration.
show me your skeleton
Member
japan has the oldest population in the world too, right? they've just a whole host of problems that will make the place implode in a few generations.
The forecast from today was that it would stableise at around 1.2. Not sure if that included the credit downgrade as it was released before that.
campfireweekend
Member
It's actually third after Monaco and Germany, in terms of highest median age.
They could solve so much by simply increasing immigration.
Ah, I figured it was another hit of less confidence that would affect both the markets then the currency again. Fun time all round whichever way.
perfectchaos007
Member
Remember when the US dollar was considered weak? Never thought the GBP and even Euro would stoop to the greenbacks level
excelsiorlef
Member
Bwhahaha. The one time I'll accept heartless, opportunistic advertising because that's hillarious.
I feel sick
yes, this sucks for the UK right now, and i'm sure its going to be a prolonged adjustment period. Its killed my portfolio/401k as an American right now as well, but to be honest, if the pound being in the 1.2-1.3 range lasts through the whole brexit proceedings i will definitely be taking a trip over to the UK
That makes it sound like it might have been lower prior to the 1980s which would not be correct. Its factual and straightforward.
Ether_Snake
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Absolutely, Japan is at the forefront of what many advanced economies will go through, but the low birth rate is part of their society adapting, not a flaw. It's only a flaw in the immediate term, but Japan is still significantly overpopulated. They are the country that is most likely to to be on the cutting edge of automation and the implications that come with it, and they are quite well prepared culturally for it, and with the falling population count are becoming increasingly well adapted demographically for that change.
People don't want to accept that the future economies will require less people, not more, because they associate that with anti-immigration ideas and due to the fear of having a demographic catastrophe on their hands, but it's just inevitable. Japan will be well adapted to this future not as a result of careful planning, but that doesn't matter once the benefits come through and fog clears up to reveal what the future holds. They'll be better adapted than most developed countries, and will be in a rather enviable position.
brekt.
Astral Dog
Member
this is stupid, everything about this is offensively stupid 
You're right, but you mean 1,000¥ instead of 10¥. 100¥ is Japan's "$1".
campfireweekend
Member
wat
I have difficulty telling if people who make this sort of comments in these ads are joking are just terrible people.
Well....I just booked a flight in the fall. We've been meaning to go visit for a while now.
That's actually a pretty good deal lol
can't knock the hustle
Edit: Sorry about that.
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