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Theft
Posted: Thu Oct 31, 2019 9:52 pm
by Mark
Sorry Dominic
Not a political topic, but financial. (He says with a touch of irony)
Brexit, or the process has cost most pensioner expats significant loss of income, with the pound euro rate plummeting to circa 1.10. now back at 1.16, the financial impact of politicians making, or not making decisions ( and effectively stealing our income) has affected us all negatively.
This must also affect the local economy as most pensioners have had less income to spend locally!
People moving to Cyprus have had to cough up more to buy properties.
The variation in exchange rates whilst predictable, has only served to profit speculators, we have been the victims of this speculation.
Theft
Re: Theft
Posted: Fri Nov 01, 2019 6:46 am
by 2QuarterPints
Currency fluctuations happen all the time, and were certainly happening before the Brexit debacle began. Theyv are a sad fact of life.
Re: Theft
Posted: Fri Nov 01, 2019 7:24 am
by Jimgym
2QuarterPints wrote: ↑Fri Nov 01, 2019 6:46 am
Currency fluctuations happen all the time, and were certainly happening before the Brexit debacle began. Theyv are a sad fact of life.
True, and a potential downside to being lucky enough to live in a foreign country. If people accept the currency going up, as it has done, I believe up to around €1.40? then you have to accept it going down.
Re: Theft
Posted: Fri Nov 01, 2019 8:01 am
by Dominic
The politicians didn't vote for Brexit. The general public did.
Personally I am fed up with people blaming politicians for everything. They are just people, like everybody else.
Re: Theft
Posted: Fri Nov 01, 2019 9:53 am
by The Aquila
And if they had joined the Euro zone in the first place then there would have been no fluctuations...
Re: Theft
Posted: Fri Nov 01, 2019 10:11 am
by WHL
I for one cant see the reason, the UK dosnt join the euro. I travel alot in Europe and having one currency, its the best thing thats happened, in my opinion
Re: Theft
Posted: Fri Nov 01, 2019 10:23 am
by Aargent
WHL wrote: ↑Fri Nov 01, 2019 10:11 am
I for one cant see the reason, the UK dosnt join the euro. I travel alot in Europe and having one currency, its the best thing thats happened, in my opinion
It means that you cannot set your own interest rates which is sometimes necessary to keep you out of financial trouble.
Re: Theft
Posted: Fri Nov 01, 2019 10:25 am
by PhotoLady
How about the theft of £47k...
That's effectively how much pension has been stolen from me because I was born in the wrong year.
Re: Theft
Posted: Fri Nov 01, 2019 10:52 am
by WHL
Aargent wrote: ↑Fri Nov 01, 2019 10:23 am
WHL wrote: ↑Fri Nov 01, 2019 10:11 am
I for one cant see the reason, the UK dosnt join the euro. I travel alot in Europe and having one currency, its the best thing thats happened, in my opinion
It means that you cannot set your own interest rates which is sometimes necessary to keep you out of financial trouble.
As a Economics simpleton, this makes sense to me.
https://www.economicshelp.org/europe/benefits-euro/
Re: Theft
Posted: Fri Nov 01, 2019 3:04 pm
by galexinda
Exchange rates do vary and for many reasons, but when I returned to Cyprus in 2013 the rate was £1 = €1.12 and there hasn't been much change in the last 6 years. Unlike the unsustainable rates a few years before then.
Re: Theft
Posted: Fri Nov 01, 2019 3:30 pm
by Aargent
WHL wrote: ↑Fri Nov 01, 2019 10:52 am
Aargent wrote: ↑Fri Nov 01, 2019 10:23 am
WHL wrote: ↑Fri Nov 01, 2019 10:11 am
I for one cant see the reason, the UK dosnt join the euro. I travel alot in Europe and having one currency, its the best thing thats happened, in my opinion
It means that you cannot set your own interest rates which is sometimes necessary to keep you out of financial trouble.
As a Economics simpleton, this makes sense to me.
https://www.economicshelp.org/europe/benefits-euro/
That, of course is a very pro one sided opinion obviously not written by an Italian or a Greek. It does not mention any disadvantages.
With their own national currencies, countries could adjust interest rates to encourage investments and large consumer purchases. The euro makes interest-rate adjustments by individual countries impossible, so this form of recovery is lost. Interest rates for all of Euroland are controlled by the European Central Bank.
They could also devalue their currency in an economic downturn by adjusting their exchange rate. This devaluation would encourage foreign purchases of their goods, which would then help bring the economy back to where it needed to be. Since there is no longer an individual national currency, this method of economic recovery is also lost. There is no exchange-rate fluctuation for individual euro countries.
A third way they could adjust to economic shocks was through adjustments in government spending, such as unemployment and social welfare programs. In times of economic difficulty, when lay-offs increase and more citizens need unemployment benefits and other welfare funding, the government's spending increases to make these payments. This puts money back into the economy and encourages spending, which helps bring the country out of its recession.
Because of the Stability and Growth Pact, governments are restricted to keeping their budget deficits within the requirements of the pact. This limits their freedom in spending during economically difficult times, and limits their effectiveness in pulling the country out of a recession.
There is the Industrial North and the Agricultural South Economies both working on different cycles hence the problems and hence the need to be able to adjust seperately
Re: Theft
Posted: Fri Nov 01, 2019 3:43 pm
by WHL
Aargent wrote: ↑Fri Nov 01, 2019 3:30 pm
That, of course is a very pro one sided opinion obviously not written by an Italian or a Greek. It does not mention any disadvantages.
With their own national currencies, countries could adjust interest rates to encourage investments and large consumer purchases. The euro makes interest-rate adjustments by individual countries impossible, so this form of recovery is lost. Interest rates for all of Euroland are controlled by the European Central Bank.
They could also devalue their currency in an economic downturn by adjusting their exchange rate. This devaluation would encourage foreign purchases of their goods, which would then help bring the economy back to where it needed to be. Since there is no longer an individual national currency, this method of economic recovery is also lost. There is no exchange-rate fluctuation for individual euro countries.
A third way they could adjust to economic shocks was through adjustments in government spending, such as unemployment and social welfare programs. In times of economic difficulty, when lay-offs increase and more citizens need unemployment benefits and other welfare funding, the government's spending increases to make these payments. This puts money back into the economy and encourages spending, which helps bring the country out of its recession.
Because of the Stability and Growth Pact, governments are restricted to keeping their budget deficits within the requirements of the pact. This limits their freedom in spending during economically difficult times, and limits their effectiveness in pulling the country out of a recession.
There is the Industrial North and the Agricultural South Economies both working on different cycles hence the problems and hence the need to be able to adjust seperately
Thank you for your detailed reply, I think I get it
... as I said economics isnt my strong point.