The Thread of BREXIT

[Strontium Dog]

The UK will enter EU re-negotiations from "a position of strength", Chancellor Philip Hammond said today, after the economy grew at 0.5pc in the third quarter.

http://www.telegraph.co.uk/business/201 ... res-to-sh/

It has only grown in terms of a devalued Pound.

Newsflash. Europeans measure the UK economy in Euros, and it has shrunk.

Great minds think alike, I was making this very point to Brazis on another forum earlier.

Calling 0.5% growth "growth" is ludicrous when the currency you're measuring in has plummeted 20% in value.

[pErvinalia]

The UK will enter EU re-negotiations from "a position of strength", Chancellor Philip Hammond said today, after the economy grew at 0.5pc in the third quarter.

http://www.telegraph.co.uk/business/201 ... res-to-sh/

It has only grown in terms of a devalued Pound.

Newsflash. Europeans measure the UK economy in Euros, and it has shrunk.

I'm not sure of the logic in that. Different exchange rates can't turn growth into loss. It can only change the amount of either growth or loss.

[rainbow]

The UK will enter EU re-negotiations from "a position of strength", Chancellor Philip Hammond said today, after the economy grew at 0.5pc in the third quarter.

http://www.telegraph.co.uk/business/201 ... res-to-sh/

It has only grown in terms of a devalued Pound.

Newsflash. Europeans measure the UK economy in Euros, and it has shrunk.

I'm not sure of the logic in that. Different exchange rates can't turn growth into loss. It can only change the amount of either growth or loss.

This "growth" is illusory. A GDP can be expressed in the country's currency, or it can be expressed in another major currency. Usually the US$. When dealing with the Europeans they will evaluate the UK economy in Euros, and if you do this, it has shrunk by 10% post Brexit.

You can do the calculations yourself.

Why do people in the UK not feel 10% poorer after Brexit?
The loss in value of the pound has not yet translated into general inflation, but it will. The Marmite Wars are the start.

[pErvinalia]

Ok, I can see how exchange rate differences from one year to the next could change the growth to a loss from the view of another currency, but that doesn't make the growth not growth. It depends on what money consumers are spending in the economy. For the growth/loss rate to be relevant in Euro's the poms would have to be using Euro's. I thought they used the GBP in Britain.

[rainbow]

For the growth/loss rate to be relevant in Euro's the poms would have to be using Euro's. I thought they used the GBP in Britain.

Use the context of the quote:

The UK will enter EU re-negotiations from "a position of strength", Chancellor Philip Hammond said today, after the economy grew at 0.5pc in the third quarter.

I can see the Germans rolling eyes.
The Spanish saying "que?"
The French making rude sounds
The Italians gesticulating

[pErvinalia]

It's nonsensical to talk about GDP in a different currency. GDP applies specifically to the currency of the country in which it is measured.

[pErvinalia]

Having said that, the concept of the UK being in a position of strength is laughable regardless of their GDP.

[cronus]

Difficult to know fully what the future will hold. The UK has some issues but also got a lead on Europe in some areas like genetic engineering which is about to explode economically with this CRISPR technology. Dumb money will do its thing but if you want to know why the house of cards is still standing in the storm watch the smart money?

[rainbow]

It's nonsensical to talk about GDP in a different currency. GDP applies specifically to the currency of the country in which it is measured.

Maybe you should tell the World Bank.

[pErvinalia]

I'll fucken tell em what for!

[pErvinalia]

By the way, that's not the world bank. It's Trading Economics which is an interactive graphing site. The world bank didn't state UK GDP in US dollars. You, or whoever selected $US in that particular graph, did. It's using world bank data, which would be in either GBP and/or PPI dollars.

[Hermit]

By the way, that's not the world bank. It's Trading Economics which is an interactive graphing site. The world bank didn't state UK GDP in US dollars. You, or whoever selected $US in that particular graph, did. It's using world bank data, which would be in either GBP and/or PPI dollars.

True. Trading Economics or the World Bank has probably just converted the pound to the momentary dollar equivalent.

Still, GDP is inextricably linked with exchange rates. A devalued currency makes the products and services of that nation cheaper. In this instance British cars become more price competitive and Great Britain becomes more affordable as a tourist destination, for example. The US has been yammering about China's alleged manipulations to keep the yen's rate artificially low in order to enhance exports, which of course accounts for its burgeoning GDP growth for decades.

[pErvinalia]

Absolutely.

[rainbow]

By the way, that's not the world bank. It's Trading Economics which is an interactive graphing site. The world bank didn't state UK GDP in US dollars.

http://data.worldbank.org/indicator/NY.GDP.MKTP.CD

I think you'll find that the World Bank does indeed state the UK GDP in US$. They do this for every country. That is how they can compare them.

[pErvinalia]

No they don't. http://data.worldbank.org/indicator/NY. ... view=chart

Again, you've selected $US.