Scottish currency to be worth less than pound.

[BigDoddyKane]

Id guesstimate that real value of the pound is somewhere between 1.4/1..5 at least when UK was still part of EU it would have been.

1.75 was just after euro started so euro was weak and 1.16 is clearly due to the instability that Brexit has created. So most likely will move slowly up a bit anyway as that transition period passes but isnt going to hit 1.75 again unless something happens to the euro.

[SandyCromarty]

The international currency is the US Dollar, recognised everywhere, in trade and business, I've used it in China no problem.

Try that with a pound, even nearer to home.

Edited May 23, 2021 by SandyCromarty

[Detournement]

GBP was down to around 1.10 vs the EUR in 20091-10 but was back up to 1.40 by 2015. All of those changes were largely driven by the UK responding quicker to the recession than the ECB who didn't loosen their monetary policy until 2012.

It's very difficult to say where GBP 'should' be against the EUR given the huge national inequalities within the Eurozone.

 

 

[Terry_Tibbs]

On 22/05/2021 at 14:59, Juanhourjoe said:

Stugeon's doing it on purpose! Deliberately keeping the currency weak to gain an unfair trading advantage.

But one question I have if we had a weaker currency, why would that mean higher prices? It even says in the article

Doesn't this point contradict that?

There would be higher prices because imports would be more expensive. We're heavily dependent on imports.

[Suspect Device]

On 22/05/2021 at 22:49, Salt n Vinegar said:

If those figures are correct, you are being unfair. Using facts to prove a point? You'll get nowhere round here using tactics like that. 

Best to use the figure from around the brexit vote.

 

We've never troubled that value since 2016 but to be fair, the government seem more than happy to have a 'weaker' currency. It boosts exports and increases the value of the FTSE 100 companies which derive a lot of their revenue abroad. 

[Juanhourjoe]

39 minutes ago, Terry_Tibbs said:

There would be higher prices because imports would be more expensive. We're heavily dependent on imports.

Would they really? Considering the highest value of imported goods is from Norway.

China and USA, being 2nd and 3rd. Would we really be in any different a position to the rUK?

[Terry_Tibbs]

6 minutes ago, Juanhourjoe said:

China and USA, being 2nd and 3rd. Would we really be in any different a position to the rUK?

Yes.

[coprolite]

1 hour ago, Terry_Tibbs said:

There would be higher prices because imports would be more expensive. We're heavily dependent on imports.

Makes you wonder why China puts so much effort into keeping the Yuan low. 

[Terry_Tibbs]

2 hours ago, coprolite said:

Makes you wonder why China puts so much effort into keeping the Yuan low. 

You're not seriously comparing Scotland with China? Talk about false equivalence.

[git-intae-thum]

3 hours ago, Terry_Tibbs said:

There would be higher prices because imports would be more expensive. We're heavily dependent on imports.

Wrong again.

Scotland is the only constituent nation of the UK with a positive balance of trade

"International exports and imports from Scotland have increased over the past 20 years. Including oil and gas, experimental statistics(19) show that Scotland has an international trade surplus, with exports consistently higher than imports. In 2016 this trade surplus was estimated to be around £2bn (1.2% of GDP)."

source https://www.gov.scot/publications/scotland-a-trading-nation/7-0-maximising-the-economic-impact-of-exports/7-1-economic-impact-of-exports/#:~:text=International exports and imports from,(1.2% of GDP).

 

At a very simplistic level of understanding then ( for unionists) this means a lower value currency may actually suit Scotland's export economy.

 

 

 

[Terry_Tibbs]

^Figures are misleading. Anything coming into Scotand via England would be considered domestic trade when imported through English ports.

[strichener]

10 minutes ago, git-intae-thum said:

Wrong again.

Scotland is the only constituent nation of the UK with a positive balance of trade

"International exports and imports from Scotland have increased over the past 20 years. Including oil and gas, experimental statistics(19) show that Scotland has an international trade surplus, with exports consistently higher than imports. In 2016 this trade surplus was estimated to be around £2bn (1.2% of GDP)."

source https://www.gov.scot/publications/scotland-a-trading-nation/7-0-maximising-the-economic-impact-of-exports/7-1-economic-impact-of-exports/#:~:text=International exports and imports from,(1.2% of GDP).

 

At a very simplistic level of understanding then ( for unionists) this means a lower value currency may actually suit Scotland's export economy.

 

 

 

 

3 minutes ago, Terry_Tibbs said:

^Figures are misleading. Anything coming into Scotand via England would be considered domestic trade when imported through English ports.

I think that looking at international trade under the Union is misleading.  rUK would need to move into the "International" classification.  Whilst this may not make much difference whilst we are part of the UK, it could well be influenced by whatever trade deal was struck with rUK especially on raw materials.

[coprolite]

10 minutes ago, Terry_Tibbs said:

You're not seriously comparing Scotland with China? Talk about false equivalence.

Ok. False equivalence is a rhetorical device employed to demonstrate a concept by analogy where the situations being compared are unsuited to such an analogy. This device can often be used to frame debates by suggesting inappropriate analogues which may have greater persuasive power than simply referring to the situation at hand. It is often regarded as an argument in bad faith. 

A related rhetorical device is the reductum ad absurdum, whereby one participant takes a point made by another (for example an illustration that there are benefits to "weak" currency) and rebutts the most ridiculous conclusion that could superficially be drawn from the point. This is special case of non sequitur and regarded as both a bad faith argument and a sign of very low levels of cognitive ability. 

You're welcome 

[coprolite]

14 minutes ago, Terry_Tibbs said:

^Figures are misleading. Anything coming into Scotand via England would be considered domestic trade when imported through English ports.

Why? 

Won't there be any ability to transit through england like every other country has? 

[Terry_Tibbs]

1 minute ago, coprolite said:

Ok. False equivalence is a rhetorical device employed to demonstrate a concept by analogy where the situations being compared are unsuited to such an analogy. This device can often be used to frame debates by suggesting inappropriate analogues which may have greater persuasive power than simply referring to the situation at hand. It is often regarded as an argument in bad faith. 

A related rhetorical device is the reductum ad absurdum, whereby one participant takes a point made by another (for example an illustration that there are benefits to "weak" currency) and rebutts the most ridiculous conclusion that could superficially be drawn from the point. This is special case of non sequitur and regarded as both a bad faith argument and a sign of very low levels of cognitive ability. 

You're welcome 

Exactly smart arse. Comparing the Chinese economic model with the Scottish economy is a prime example. 

[coprolite]

Just now, Terry_Tibbs said:

Exactly smart arse. Comparing the Chinese economic model with the Scottish economy is a prime example. 

Who did that Terry? 

[Terry_Tibbs]

3 minutes ago, coprolite said:

Who did that Terry? 

This muppet:

3 hours ago, coprolite said:

Makes you wonder why China puts so much effort into keeping the Yuan low. 

[DublinMagyar]

Lolzers

[The_Kincardine]

4 hours ago, git-intae-thum said:

Wrong again.

Scotland is the only constituent nation of the UK with a positive balance of trade

A while since we saw this hoary old stat.

Never stops making me smile, though, when the Anglophobic cos-playing fantasists trot it out, though.

Edited May 24, 2021 by The_Kincardine

[Wee Bully]

6 hours ago, The_Kincardine said:

A while since we saw this hoary old stat.

Never stops making me smile, though, when the Anglophobic cos-playing fantasists trot it out, though.

It’s 1am, and The_Kincardine has been at the gin again.