Euro / Pound currency prediction thread

[littleredrooster]

Originally Posted by Stravinsky

Aren't they two of the most expensive to live in?
I've been to both, and the cost of things defies belief!

True they are both rich which is why they did not wish to share it or subsidise poorer EU countries.
Norway has its oil and vast fishing resources,not limited with EU red tape, and only a small population. The Swiss have their banks (say no more).
Both have a bit of a reputation for being a touch stingy or careful with money.
When I travel through Norway I often wonder where their money goes, as the housing,road maintenance etc appear nothing special and in places are poor.
However both companies and individuals from Norway do make many wise investments in other countries including here in Sweden.

[Stravinsky]

Originally Posted by littleredrooster

True they are both rich which is why they did not wish to share it or subsidise poorer EU countries.
Norway has its oil and vast fishing resources,not limited with EU red tape, and only a small population. The Swiss have their banks (say no more).
Both have a bit of a reputation for being a touch stingy or careful with money.
When I travel through Norway I often wonder where their money goes, as the housing,road maintenance etc appear nothing special and in places are poor.
However both companies and individuals from Norway do make many wise investments in other countries including here in Sweden.

In Norway the Health system is second to none. Apparantly there are no waiting lists. Tax though is close to 50% according to someone I know there.

[chris(madrid)]

Originally Posted by littleredrooster

When I travel through Norway I often wonder where their money goes, as the housing,road maintenance etc appear nothing special and in places are poor.

Travel WAY North?. When I was there residents up in the far north (Lofoten Islands UP) got MASSIVE tax rebates on anything related to staying alive. iirc Warm clothing is TAX free - but up North so was fuel.

The Swiss I know are by no means RICH. Whilst there is MONEY in Switzerland it's NOT distributed wealth. Food was horribly expensive. I know a couple of well paid professionals - They live well imo - but not as maybe one would expect. I lived at the time better in Germany.

For a LONG time the country with the HIGHEST per capita spending power was Luxembourg. This is what matters to most folk. But every time I travelled through there (UK->Germany) I was struck by the fact it felt, well, poor. Nices cars often though.

The Euro has done one indisputable thing. Affect how Banks make money. Ask a Foreign Exchange dealer.

The Euro-dollar has to some extent united mainland European states in the same way the Dollar united the American States. The level of salary and taxation varies HUGELY ime from State to State - the same as in Euro-states. Rich US states DO subside to some extent POOR US states. I used to travel a lot to one of the more heavily taxed US states. But within reason they all speak one language too.

The big difference is that here they're still sovereign states. This allows the control of revenue and exchequer more closely. Two major factors affecting Euro-states cross border business is how VAT is applied and language.

For a while I was running a business and dealt a fair amount with Germany (And Romania but they had a German account). It's a JOY to travel somewhere on business(or pleasure) and know you don't need to change currency or even plan it. For those NON-BRITs in Europe - this is a HUGE PLUS. I am aware of the exodus from Spain of certain Euro groups - BUT (I'm told) due to a change in their taxation systems.

iirc The pound was(still is?) held STRONG for a long time by two major factors. Financial Services and OIL. The UK has supported the US financial presence in Europe for years. With a weak dollar this is not necessarily a solid foundation.

Germany has taken a strong position within the Euro sector for financial services and Spains Banks are no slouches either. When the UKs oil runs out............

The UK joined the EEC for a reason. Expats (esp pension) income was not high on the list.

[littleredrooster]

Originally Posted by Stravinsky

In Norway the Health system is second to none. Apparantly there are no waiting lists. Tax though is close to 50% according to someone I know there.

I was in the tourist centre of Oslo last Summer and the place was a mess with druggies laid about all over the place,dirty seedy side street bars and the roads and pavements an absolute disgrace, yet crazy prices even for a snack in a grubby-looking cafe.
Close to the Swedish border things are better and prices not so bad.
Despite it being Non EU to EU there are no border controls anywhere and have not been for very many years.
Its easy for people in this area to pick up most of their supplies in Sweden where prices in general are now much in line with UK and Spain. Cigs and petrol cheaper and only spirits and wine any dearer.
Worst thing for residents here in Sweden are the taxes which when all added together come to about 50% of the average income.
They even charge taxes on taxes can you believe?
Although not rich in natural resources the economy has held up and the Sw.kroner done very well over the years since they opted out of the Euro.
House prices have gone up quite a lot over the last 6 year or so but still some bargains.
When I bought 6 year ago the trend was still for people to move nearer towns for their work but that has now reversed.
Picked up a nice place back then for less than 30,000 uk, 5 beds,2 large living rooms,3 full bathrooms,sauna,4 terraces,large kitchen,storerooms etc,all triple glazed,large garage,all recent build plus good plot of land with timber in a quiet pretty spot in the dales.
It is however much more expensive on the pretty west coast close to Norway or closer to the biggest cities.

[SunnySpain]

Originally Posted by littleredrooster

I
House prices have gone up quite a lot over the last 6 year or so but still some bargains.
When I bought 6 year ago the trend was still for people to move nearer towns for their work but that has now reversed.
Picked up a nice place back then for less than 30,000 uk, 5 beds,2 large living rooms,3 full bathrooms,sauna,4 terraces,large kitchen,storerooms etc,all triple glazed,large garage,all recent build plus good plot of land with timber in a quiet pretty spot in the dales.
It is however much more expensive on the pretty west coast close to Norway or closer to the biggest cities.

Norway is expensive for just about everything including property and that goes for the South also. Try property hunting in Stavanger and see what prices are like.

Regards, Dave

[Stravinsky]

Originally Posted by SunnySpain

Norway is expensive for just about everything including property and that goes for the South also. Try property hunting in Stavanger and see what prices are like.

Regards, Dave

Ive spent some time a long while ago in Bergen and that was financially frightening

[jojo]

Well the pounds not looking good this morning!

Jo

[SunnySpain]

Originally Posted by jojo

Well the pounds not looking good this morning!

Jo

Yes, its true. However, the dollar lost ground on the Euro and the Pound before bouncing back strong, so I much expect the same or similar to happen with the pound, although not so much against the dollar this time, but against the Euro, which I strongly suspect is the next currency to be hit.

"He who laughs last, laughs loudest"
"the economy / currency to be hit last, will be hit the worst"

Well thats my prediction for today anyway - lol

[jojo]

Originally Posted by SunnySpain

Yes, its true. However, the dollar lost ground on the Euro and the Pound before bouncing back strong, so I much expect the same or similar to happen with the pound, although not so much against the dollar this time, but against the Euro, which I strongly suspect is the next currency to be hit.

"He who laughs last, laughs loudest"
"the economy / currency to be hit last, will be hit the worst"

Well thats my prediction for today anyway - lol

So whats gonna happen if, as predicted the UK interest rate is lowered????

Jo

[crookesey]

Originally Posted by jojo

So whats gonna happen if, as predicted the UK interest rate is lowered????

Jo

If inflation continues to increase it is more likely to go up than down. If however GB instructs them to throw caution to the wind, as happened in the USA months ago with the Fed rate cut to 2%, then we might stand half a chance of coming out of this. Unfortunately the government have squandered the taxpayers money, they even flogged off our gold reserves at a knock down price of $200 an ounce. I would be very surprised to see more than a 0.25% drop in the BOEBR.

The pound falling sharply comes from the chancellor making a public statement to the effect that the electorate were p----d off with the government and that we were in our worst financial crisis for 60 years. I was 14 months old 60 years ago but know that most folk post war had ****** all to lose, it was a completely different world. So you can thank Mr Darling for making your pounds worth even less against the euro.

Might I suggest Jo that you pour yourself a large glass of wine and go outside and relax in the late afternoon sun, not forgetting to give Mr Brown and Mr Darling the customary salute?