Why is the pound in a state of collapse ?

[Armin Tamzarian]

I agree Drewth that the UK government is not to blame for the global economic recession, but they most certainly ARE to blame for the fact that they have put the UK in the worst position of all major nations to recover from it, according to the IMF (them again!).

The main effect of this mismanagement as far as we are concerned here, has been to destroy the value of the pound, which is exactly why you have made so many posts bitterly complaining about its value against the Euro.

In addition to his nuclear attack on private pensions in 1997 (which has cost everyone who contributed £17,000 on average) he's now managed to substantially reduce the value of those pensions that are left by facilitating the collapse of the Pound.

So, I don't blame Gordon Brown for the world sinking into a fnancial pit. But I do blame him fairly and squarely for digging the UK the biggest hole of all.

[Drewth]

[QUOTE=Warrior;21254]

Quite right Armin and after that the IMF put the shutters up and wouldn´t lend us any more. I haven´t a clue where we´ll get a 100 billion from.
It´s always the same when the Socialists are in power: they know very well how to spend other peoples money, but they don´t have the first bloody idea how to make it.
Why do we have to be governed by a bunch of ignorant jocks anyway, I know nobody voted for the buffoon, but he and his sweaty sock cronies are still there aren´t they?

I vowed not to do this but.....

I don't think the UK Government are to blame for what is, after all, a world crisis

Why is it necessary to call the Scottish people 'ignorant jocks' ? They are not of course, no more than people from elsewhere. In fact, the Scottish education system is widely recognised as being of a much higher standard than the English. They have done much to add to the history and culture of Britain as well as producing the best doctors and by far, the greatest number of inventors. Scotland has also produced the likes of the Carnegies' the worlds richest people and greatest philanthopists. It is the same as calling the English 'arrogant sassenachs'.

Millions of people must have voted Labour and certainly thousands for the current PM as a constituency MP

I am not from Scotland but I have a good many friends who are. Nor am I a voter or supporter of the Labour Party.

I neither agree or disagree with the current policies but I feel it is silly to blame the whole world economic crisis on Gordon Brown. The question is, what would you, operating within the constraints he does, do ? Britain 56 million people, USA 250 million people, Euro Zone around 250 million plus people, China off the scale in terms of population and placing Blighty in the economic shade.

[Warrior]

[QUOTE=Armin Tamzarian;21252]

I agree. People seem to have forgotten what gave rise to the Thatcher years in the first place.

Back then it was Wilson's government who were forced to borrow from the IMF to avoid economic catastrophe as a result of their wholesale mismanagement. But then the country only required a £2 billion bail-out!

Quite right Armin and after that the IMF put the shutters up and wouldn´t lend us any more. I haven´t a clue where we´ll get a 100 billion from.
It´s always the same when the Socialists are in power: they know very well how to spend other peoples money, but they don´t have the first bloody idea how to make it.
Why do we have to be governed by a bunch of ignorant jocks anyway, I know nobody voted for the buffoon, but he and his sweaty sock cronies are still there aren´t they?

[John50]

The number of Brits enjoying a holiday in Spain dropped by 5% during the second quarter of 2008 compared with the same period last year, a new report from the Spanish tourist board has revealed.

Latest numbers indicated that the overall number of international visitors to Spain was also down, by 0.7%.

However, the figures suggested that Spain is still the favoured international holiday destination for Brits, some 12m heading to the Iberian Peninsula in the last 12 months.

The tourist board suggested that the drop in British visitors was due primarily to the current European economic conditions coupled with the strength of the euro against the pound.

Meanwhile, Mallorca-based Sol Melia, Spain's biggest hotel group, has warned that Spanish travel companies might struggle for profitability in 2009, as a result of economic slowdown brought on by the credit crunch.

Spain's INE (National Statistics Institute) warned that hotel stays dropped 2.3% year-on-year in June, despite posting 6.6% growth in May.

[Armin Tamzarian]

[QUOTE=Warrior;21234]

god forbid anybody asking for a return to the period when that HAGG was in charge of the country


At least when that HAG was in charge she didn´t want to borrow 100 billion to sort things out - we´ll be paying it back forever!

Can someone please explain the intricasies of the "Great Leader´s" master plan to me so that I may also: Borrow My Way Out Of Debt.

Financial Genius - Bloody Idiot more like.

I agree. People seem to have forgotten what gave rise to the Thatcher years in the first place.

Back then it was Wilson's government who were forced to borrow from the IMF to avoid economic catastrophe as a result of their wholesale mismanagement. But then the country only required a £2 billion bail-out!

[Drewth]

Opening today:

Euro - 84.5p
Pound - 1.183 Euro

[Warrior]

[QUOTE=benimar_col;21223]god forbid anybody asking for a return to the period when that HAGG was in charge of the country


At least when that HAG was in charge she didn´t want to borrow 100 billion to sort things out - we´ll be paying it back forever!

Can someone please explain the intricasies of the "Great Leader´s" master plan to me so that I may also: Borrow My Way Out Of Debt.

Financial Genius - Bloody Idiot more like.

[benimar_col]

all the doom and gloom, job and home losses on the horizon, those guys who prayed for the return of the thatcher years,
your wish has come true.
sorry just couldnt resist,
kev

god forbid anybody asking for a return to the period when that HAGG was in charge of the country


its not just doom and gloom over there in sunny Spain folks, we are currently getting price wars over here in UK just before Xmas, many pubs,shops,buisnesses are going to the wall, the fall out will come when the prices increase and wages / salarys are stagnant and cant cope up

the price of a barrel of oil was $50 last week, i cant recall it ever being so low, only a few months ago it was $110, the whole world nearly in meltdown

[Warrior]

Pound Rises

I understand that the pound has risen to 2.4



against the Matabele Gumbo Bean!!

[Drewth]

An excellent article has appeared in the Independent about this very issue and the effect it is having on a lot of us here in the Torrevieja area:

Costa lot: Expats forced to tighten their belts - Europe, World - The Independent


I am no expert on tourism but the Round Town News article which Armin disagrees with is reproduced here:

Written by David Mills

Thursday, 20 November 2008

British Tourism Downturn

The devaluation of the pound sterling against the euro in the last six months has caused an estimated 20 per cent increase in the price of holidays for British tourists choosing the Costa Blanca as a holiday destination!

According to the hotel employer’s association Hosbec in Benidorm, the negative affect is thought to have been caused by the worldwide economic crisis that threatens the whole tourist infrastructure in Spain. They said the exchange rate is making other destinations away from the Mediterranean such as Turkey or Egypt, more viable options for cash-strapped Brits.

The euro was changing hands for 67 pence in June however; yesterday the same euro was costing 81 pence. The US dollar was static at 67 pence the same amount as the euro six months ago due to the pound being very strong against the euro.

Greater effort

In order to fight this negative downturn, the local Spanish companies demanded action from the National, Regional, Provincial and local tourist administration to invest a greater effort in marketing the Costa Blanca in general and Benidorm in particular in Great Britain. HOSBEC have also called for a ‘joined up and concerted effort’ by all businesses big and small to protect their investment.

The weakening of the pound and the economic crisis that is affecting the UK has already caused alarm in the tourist sector of the Costa Blanca that relies heavily on British tourism comprising around 54 per cent (2.5 million people) of the total. The reduction in the numbers is a reflection of deep cutbacks in expenditure by people in the United Kingdom. Thomas Cook announced at the end of September they anticipated a 15 per cent reduction in business during the summer of 2009.

The ‘knock-on’ effects of these economic cuts and losses have been reflected in the activities of the airline company Easyjet. This week they announced their annual profits for the fiscal year September to September were 98.3 million euros down on last year, a drop of 45 per cent! The airline attributed the reduction in profits to the scarcity and relatively high price of fuel, especially in the UK. Easyjet connects Alicante’s El Altet airport with 12 UK airports as well as Basel and Dortmund.

Liverpool and Birmingham

The Benidorm Councillor for Tourism, Angelica Such, will head to the UK next week as part of a ‘First Direct’ sponsored tourist promotion. The team will try to attract more tourism in the north of England, in particular in Liverpool and Birmingham, home to nearly seven million people. Numerous street activities are planned including giving away ‘goody bags’ with trinkets and teasers to encourage more holidaymakers here.


I wouldn't say this was a badly written or researched article.

[Armin Tamzarian]

John 50 - several articles in today's Round Town News to support exactly what you have been saying. EasyJet's profits are down and the Spanish are very worried about the drop in tourism and Benidorm hoteliers are extremely concerned. Worth a read if you are in to tourism. One person commented that there are better and cheaper places to go now than Spain which echoes what someone posted here.

Surely you're not relying on getting your information from the Round Town News, Drewth?

Let's get realistic. Easyjet's profits were down because of the high price of fuel earlier in the year. They actually carried 17% MORE passengers in that period.

Ryanair's profits suffered for the same reason even though their passenger volumes in the 2nd quarter this year were UP by 20%.

Both airlines say they expect good results if the oil price stays at its current level and Easyjet reported bookings for the first quarter of 2009 "slightly ahead of last year".

Did RTN report this as well?

(edit) Passenger numbers through Alicante airport October 2008: 872,294 (from UK 428,079) 2008 total : 9,683,377 (UK 4,139,13

Passenger numbers through Alicante airport October 2007: 866,221 (from UK 431,290) 2007 total : 9,029,206 (UK 3,939,900)

So, last month UK visitors through this aiport were very slightly down month-month by 0.7%, but this year there have been 5% more visitors here than in 2007. They must be staying somewhere?

Also, the Alicante airport figures show big increases (both in October and for the year) in the numbers of Germans, Belgians and Swedes coming here.

[Drewth]

John 50 - several articles in today's Round Town News to support exactly what you have been saying. EasyJet's profits are down and the Spanish are very worried about the drop in tourism and Benidorm hoteliers are extremely concerned. Worth a read if you are in to tourism. One person commented that there are better and cheaper places to go now than Spain which echoes what someone posted here.

Anyway, Pound all over the place today and at one time I thought it was slowly crawling up again but no blast it, its now at Euro = 84.6 pence to buy/£1 =1.182 Euros so its lost all its gains as it seems to most Fridays.


PS. is it me or have loads of subject threads disappeared again ?

[Drewth]

Good article in today's Guardian about the fall of Sterling:

Larry Elliott: Don't fear for the pound | Comment is free | The Guardian

Opening today £1 = 1.187 Euro/Euro = 84.3 pence

[Drewth]

The Pound started the day looking a little more positive but has now dropped back again unfortunately and looks as though it will settle on 1.179 Euros meaning a Euro costs 84.8 pence.

[John50]

I believe the tourist industry here are living in dream land. What I have written is based on many years experience in the industry and also backed up by what independent observers have written. This area has survived on low prices and sunshine. Bar that, and without wishing to sound unkind, there isn't much going for it. Better quality and even more economical holidays are to be had elsewhere. One sure thing, businesses here will continue to close and time will tell on the tourism front. Cheap flights and sandwiches made up from food items purchased in Lidls and consumed on the beach and accommodation in someone's primary or second home or paying undeclared rental to a property owner does not represent a tourist industry. Maybe you are one of those Spanish who know best ? Well, as I say, time will tell. I'm retired from it now.