The pound is on the brink

[Sprogster]

Both the main UK political parties are currently against joining the Euro, as appears the clear majority of the UK population who in a referendum would almost certainly vote comprehensively against the Lisbon Treaty. As far I am aware it is not even being mooted any longer by the Lib Dems, as to do so would be political suicide.

Can't understand the perception that the UK might join the euro, as it is not even on the radar screens politically anymore and UK sentiment is generally anti any further EU integration. The pro EU sentiment of us Francophiles are not typical of the average UK person!

Current spot rate is 1.09 and going down! 

[Jako]

True, but actually the UK decided 10 years ago to join the Euro. Since then, the UK government has made sure they don't qualify in order not to join. Why a referendum, just choose a government that wants to leave the EU or declare it will never ever join the Euro.

Such a political party does not exist because it would be very damaging to the UK. For the biggest economy in the world ( =the Euro zone, not the US) whatever the UK decides or does is completely irrelevant.

.

 

[dragonrouge]

Dear Quillan of course I am good for the money and for you to question?

Us lawyers as many of your think make lots and lots of money but bluntly for those of my colleagues who live on Legal Aid from HMG they are now carrying huge overdrafts for there are deliberate attempts to delay payments and the like.

Quillan its going nowhere so please let me know where you want the donation sent and it will go immediately

Best wishes

[dragonrouge]

Some days ago we based next years xfers here on 1.10 now it looks a mess and whilst ok we have income and a house here in France and an investment in the UK the thought of parity just does not bear any thought whatsoever.

This is going to be a hard slog and please can I go to sleep and wake up in five years time.

[Quillan]

[quote user="dragonrouge"]Dear Quillan of course I am good for the money and for you to question? Us lawyers as many of your think make lots and lots of money but bluntly for those of my colleagues who live on Legal Aid from HMG they are now carrying huge overdrafts for there are deliberate attempts to delay payments and the like. Quillan its going nowhere so please let me know where you want the donation sent and it will go immediately Best wishes[/quote]

Oh dear [;-)] . I tell you what, next time you see a charity box for British Heart Foundation drop a couple of quid in and we will call it quits you poor hard done lawyer you [;-)] [;-)] .

What I find interesting is that we only look at joining the Euro from our side but what makes us think that Europe actually wants us to have the Euro now. When it was getting off the ground they were very keen for us to join (I was thinking of the word beg but it does not seem appropriate) and very disappointed that we didn't join. Many of my French friends feel that Europe has moved on and that the UK is already left behind. One way it was explained to me is its like a train, all steamed up, everyone on board and the guard is waiting, whistle in mouth, for the UK to turn up. The thing is they can't wait for ever and the train will have to leave with or without the UK. Personally, again for what its worth, I think our future lies very firmly in Europe as history shows and if we opt out or are thrown out we will loose far more than we could ever possibly gain, but thats my thought. Casting our 'lot' with the US is definitely not the way to go especially as they loose their influence within Europe.

[dragonrouge]

Dear Quillan back in the UK next week and will do what we agreed and I have to say that I have a relationship with your Charity! through a very dear friend no longer with us.

It seems very fitting.

[dragonrouge]

Dear Quillan when we bought our first house in Normandie in 2001 the rate was 1.675. Just about thinking about taking early retirement and it was a lovely August in Normandie and the world was wonderful.

Like others my life now is in part is driven by financial considerations as to the relationship between the £ and the euro and however much it seems we have planned been prudent and done all the things one is told to do for one's old age we cannot do anything about it.

Our income is £ driven and I just get so very frustrated that I cannot influence at all our future here in France at least from a financial standpoint.

Last night I was moaning on this very point and my wife asked me the question financially where would we be better off?

I really do wonder at times.

Best wishes

[Quillan]

Getting paid in Sterling is a nightmare at the moment if you live in France. As you know my wife works in the legal 'industry' and is paid in Sterling although fortunately we don't have to draw on the money very often but then the interest rate she is receiving in the UK is really naff unless she wants to lock her money away for a few years.

When we bought our house the rate was not too different from the one you got. Fortunately, as it turned out, I did what some at the time said was stupid and moved all my money to France with the exception of my pension fund. This in the long term has proved to be quite beneficial but it was a gamble at the time and for a while I did wonder if I really had done the right thing.

I think anyone back then thinking the exchange rate would stay at that level and calculated their 'survival' income on that rate was quite frankly nieve (I am trying to be kind). That said, I, like many others, worked on a worse case scenario of 1.40 and thought myself pretty smart. It has turned out I was not as smart as I thought I was but then I was not reliant on a UK income. When somebody asked what would be a good rate to work from some time back on the forum I suggested 1.10 but now as somebody suggested I think parity would be better with every cent you get above that being a bonus.

I am considering several options with my pension fund which includes moving it to France under the QROPS scheme. It seems that I could actually get some interest on my 'pot' where as I lost money last year and anticipate loosing even more this year if I keep it in the UK. It's a big 'pot' and to be honest I am scared. It seems for everyone that tells you its a good idea there is somebody who tells you the opposite and its a lot of money to mess around with. The problem is compounded by the fact that like many the day I will need to use is getting closer and closer so for people to say 'but you must look at all investments as long term' is not really relevant as I simply don't really have the time. I was never any good at betting on horses (my Grand National choice for 1989 still has not passed the post [;-)]) and to take a gamble, for thats how I view it, with my pension frightens me to death.

There is an article HERE which gives basic information from which you can research things in more detail, I don't know if it relevant or helpful to you (or others in a similar boat).

As for the charity I chose, my mum died of heart disease which she inherited and I have inherited it from her which is why I have chosen it. I am sure they will be very pleased to accept your gift although in a way its unfortunate (and not something I really gloat about) that they are getting it because of this particular bet (the first one I have probably ever won).

[dragonrouge]

Thanks Quillan just a week ago I did the arithmetic and at a worse case scenario suggested 1.10 I also built in a contingency of 15% but never thought we would be working our way towards parity.

My pension pot has been activated as has my wifes plus AVC's plus during my later working life buying extra 40th's 45th's and the like and then share option schemes with my then employer. When I used some of these shares to buy a new car they were £15 they are now £1.30.

Still we are living in a wonderful country but it too has some problems so nowhere is perfect.

My State Retirement Pension has now cut in and it is quite good after 44 years working and having contracted out for a substantial period.

However my main pension is based upon RPI and the rate last December was .9% so we had pennies increase in our pension.

However one can only do what you can and as it is outside our control I suppose the argument is like the weather you cannot do anything about it.

So get on and enjoy life

I have enjoyed the exchanges

regards

[NormanH]

The problem is most acute for those who put all their eggs in one basket such as a single large propery, neither investing part of their capital in something that could provide a revenue, nor working.   I have always made sure I have a very modest income in both currencies, and that option has usually been available.

[bigears]

Its going down...down...down.

plus high prices in france,  its not funny.

 

[Megan le Fey]

[quote user="bigears"]

Its going down...down...down.

plus high prices in france,  its not funny.

[/quote]

Indeed it is.  Yesterday, thanks to said high prices, I had to move some of our tiny squirrelled away nestegg from the UK bank and it was at 1.02 euros to the pound.  Add around 20 quid charges and probably a few euros charged by the French bank and the bit I moved almost certainly comes out at one to one or perhaps even less.  The last time I brought cash in, back in June,  it was at 1.12 euros to the pound so yet another 10 percent loss.

[Martin963]

It does seem that the wretched Brown and the wretched King are deliberately engaged in what used to be called a "beggar thy neighbour" currency policy.

Personally I look on it as "cheating" pure and simple (as I imagine the members of the € zone do),  and in the long term I think it will come back to haunt Britain.   I certainly hope it comes back to haunt history's view of Brown.

It certainly influences the way I shall be voting in the 2010 General Election.

As a PS,  last night the BBC Parliament channel showed the very first edition of "Question Time" to co-incide with the 30th anniversary of its start in autumn 1979.    And there was the wretched idiotic Foot criticising the (at the time) modest cuts that the new Conservative government were having to introduce to try to balance the books after the catastrophic Labour government's five years in office from 1974 - 1979,  when -  let it be remembered -  the IMF had to bail us out.

The parallels were eerie.

[NormanH]

"Under the impact of what it saw as the Thatcherite

economic revival, New Labour since 1997 swallowed the ideology, or

rather the theology, of global free-market fundamentalism whole.In their

economic policies both Tony Blair and (until October 2008) Gordon Brown

could be described without real exaggeration as Thatcher in trousers.

Britain deregulated its markets, sold its industries to the highest

bidder, stopped making things to export (unlike Germany, France and

Switzerland) and put its money on becoming the global centre of

financial services and therefore a paradise for zillionaire

money-launderers. That is why the impact of the world crisis on the

pound and the British economy today is likely to be more catastrophic

than on any other major western economy - and full recovery may well be

harder."

Eric Hobsbawm...and I agree.

[Alan Zoff]

It has long been a worry to me, this notion that London will always remain supreme, enabling the British economy to rely on financial services, with English as the international language of commerce. Anything is transportable.  Whether English will remain the global language is open to debate, but in any event, Johnny Foreigner has proved to be adept at learning other peoples' tongues.  

[Quillan]

[quote user="Alan Zoff"]It has long been a worry to me, this notion that London will always remain supreme, enabling the British economy to rely on financial services, with English as the international language of commerce. Anything is transportable.  Whether English will remain the global language is open to debate, but in any event, Johnny Foreigner has proved to be adept at learning other peoples' tongues.  [/quote]

Now look here young fellow me lad theres no need to go round taking that sort of attitude, dear me no. Lets not forget Great Britain is the mother of democracy and has given the world so much. We rule the seas (providing we can borrow some diesel to get our ships going) and we rule the skies (forget about the poultry £401M loss's of BA and the fact we have grounded or mothballed most of our military aircraft) AND we have 'Flash' Gordon (Brown) savior of the universe and in particular the world economy. Any more of that sort of thing and we will send gunboat over and sort those 'Johnny Foreigners' out.

Joking aside, and sadly, thats how some of them think. They need to remember that the UK has lost most of its greatness and needs to learn its place in the global way of things before it becomes (more of) a laughing stock of Europe. Perhaps then it could look at and address some of the problems that the public there are more concerned with like education, health and jobs. Whats the saying, charity begins at home, the UK should look after its self first then anything left over it can give to the poorer nations.

[Gastines]

As Quillan states"Charity begins at home".I expect the Civil List Brigade are very pleased about that. I understand they won't have to tighten their belts like the rest of the population. One day,hopefully, someone will drag the UK into the 21st century and realize that the country doesn't need the whole tribe and the hundreds of flunkies and pandering fops.

[Jazzer]

[quote user="NormanH"]"Under the impact of what it saw as the Thatcherite

economic revival, New Labour since 1997 swallowed the ideology, or

rather the theology, of global free-market fundamentalism whole.In their

economic policies both Tony Blair and (until October 2008) Gordon Brown

could be described without real exaggeration as Thatcher in trousers.

Britain deregulated its markets, sold its industries to the highest

bidder, stopped making things to export (unlike Germany, France and

Switzerland) and put its money on becoming the global centre of

financial services and therefore a paradise for zillionaire

money-launderers. That is why the impact of the world crisis on the

pound and the British economy today is likely to be more catastrophic

than on any other major western economy - and full recovery may well be

harder."

Eric Hobsbawm...and I agree.

[/quote]

As someone else has already said, what we are seeing with the whole financial crisis are the last vestiges of the Reagan/Thatcher era

[NormanH]

Gastines: look at the article I posted in the thread on 'The Late Queen Mother'

[Russethouse]

[quote user="Gastines"]As Quillan states"Charity begins at home".I expect the Civil List Brigade are very pleased about that. I understand they won't have to tighten their belts like the rest of the population. One day,hopefully, someone will drag the UK into the 21st century and realize that the country doesn't need the whole tribe and the hundreds of flunkies and pandering fops.[/quote]

Yes, lets give back the Crown Estates and abolish the Civil list [:D][:D] http://en.wikipedia.org/wiki/Civil_list

[Thebiga]

Dont Panic! Dont Panic!  They don't like it upum you know....[:D]

[Jonzjob]

Blimey RH! 190 million £ to the tax office and then taking £7.9 million out for the the Civil List sounds like a bit of a good earner for Clown Brown and his cronies to likkle awd me?

 

[Russethouse]

Quite ![:)]

And that doesn't even begin to take into account the benefit to our tourist industry....

[NormanH]

[quote user="Jonzjob"]

Blimey RH! 190 million £ to the tax office and then taking £7.9 million out for the the Civil List sounds like a bit of a good earner for Clown Brown and his cronies to likkle awd me?

 

[/quote]

Why?

Do you get supported at the country's expense, just because you are rich enough to pay a lot of taxes?

You feel it is right to give a tax rebate to people who have no need of it?

The £7.9 million is an unnecessary expense which could be saved if the Royal family lived off the considerable wealth that results in the tax bill.

As for "sounds like a bit of a good earner for Clown Brown and his cronies", in what sense is this true?

Don't the taxes paid by the Royal Family go into the same pot as those paid by the rest of us?

In what sense is this an 'earner' for particular politicians?

Your insinuation sounds dangerously close to being actionable to me, unless you can justify it.

I would suggest that the Moderators look carefully at this post.

[Jonzjob]

Oh dear RH?[blink]

I would think that anyone with an once of sense would take 'Clown Brown and his cronies' to be the 'government'!