I Don't Get It. Why is the Pound greater than the Dollar?!

[vibeke_T]

What's it all mean?

 

[Kaboom]

it means the british economy is stronger than the U.S.'s

 

[vibeke_T]

But why...

I hear all this talk of inflation...but in the long run, isn't inflation bad...

and the U.S. dollar is still a strong reserve currency...so...help meh

 

[Kaboom]

But why...

I hear all this talk of inflation...but in the long run, isn't inflation bad...

and the U.S. dollar is still a strong reserve currency...so...help meh

the u.s. has a strong and stable economy compared to the rest of the world. Thats why its good as a reserve currency. but even our currency isnt based on the gold standard anymore, just our promise to accept it.

inflation has to do with (and i forget the exact name) but lets call it the market basket. it includes thing like eggs, milk, bread, gas...etc. its stable over time. if the market basket is more expensive today then it was yesterday your in a period of inflation.

moreover the market basket translates....if a US market basket costs $10 US dollars and $5 British pounds, that means 1 british pound is worth about 2 U.S. dollars.

so in order to "buy" a pound you need to "spend" two dollars.

thats called the exchange rate.

 

[November Rain]

I remember the days when the naira was just as strong as the pound...

*Sniff*

 

[hippie_hunter]

it means the british economy is stronger than the U.S.'s

What

No it isn't.

 

[Prognosticator]

But why...

I hear all this talk of inflation...but in the long run, isn't inflation bad...

and the U.S. dollar is still a strong reserve currency...so...help meh

It's because London is still the center of trade in the world because of its central (albeit northern & water-based) location.

Also, it's more expensive to import goods & services there b/c obviously they aren't creating everything for the country. And if it costs that much to ship it in, they're going to darn well charge that much more for everything going out.

And London's the NewYork/LA of Europe put together so...are we getting anywhere yet?

 

[Prognosticator]

Because London's such a hotspot, every piece of land is PRIME REAL ESTATE. And the British Isle's aren't getting any bigger so land value will continue to rise in many areas...$$$!

 

[jaguarr]

Ask Gee-Dubyah this question.

jag

 

[black_dust]

Because we love by stuff cheaper from your country Its great buying stuff from America at the moment CHEAP CHEAP!

 

[Kaboom]

Because London's such a hotspot, every piece of land is PRIME REAL ESTATE. And the British Isle's aren't getting any bigger so land value will continue to rise in many areas...$$$!

yes, because in the United States we learned how to make new land a long time ago.

 

[Prognosticator]

Actually, if you look at old maps of NYC in comparrison with current ones, they've significantly expanded land on Long Island for example.

 

[Kaboom]

Actually, if you look at old maps of NYC in comparrison with current ones, they've significantly expanded land on Long Island for example.

you have sealand.

http://en.wikipedia.org/wiki/Sealand

 

[bulok]

yes, because in the United States we learned how to make new land a long time ago.

it's all about the crystals. the resulting EMP is a pain tho

 

[Lackey]

The Answer

 

[Outsiderzedge]

Its about to rise even higher over the dollar once OPEC completely switches to the Euro. When that happens, every central bank in every country in the world will have to flush all of the dollars out it's vaults to buy euros. The international money market becomes glutted with dollars. Their value collapses. Everyone evacuates the New York stock exchange and the U.S. is back, once again, in it's nightmare dustbowl depression of the 1930s. Only this time, we'll be without a strong trade union busting Nazi Germany to invest in.

 

[chamber-music]

Hey its good for Brits and Yanks. It means when we come over we get to buy stuff on the cheap and us spending our money in your country helps your industries and creates job.

Plus our strong pound is the only thing keeping Britain from using the Euro. Which is a lot more stronger than the dollar last time I checked.

 

[Lackey]

Its about to rise even higher over the dollar once OPEC completely switches to the Euro. When that happens, every central bank in every country in the world will have to flush all of the dollars out it's vaults to buy euros. The international money market becomes glutted with dollars. Their value collapses. Everyone evacuates the New York stock exchange and the U.S. is back, once again, in it's nightmare dustbowl depression of the 1930s. Only this time, we'll be without a strong trade union busting Nazi Germany to invest in.

good thing we got all the oil in Iraq to stay on the dollar... funny how that worked out

 

[Super_Child]

What

No it isn't.

Yes it is. You just wait lol.... actually its pretty sad. Sorry for laughing.

 

[Lackey]

hippie is right

 

[vibeke_T]

keep explaining