Pumpkin Posted December 30, 2010 Share Posted December 30, 2010 I am not going to disgaree with what your own personal opinion is. I was merely stating my own point of view. Well you said that you think it shouldn't matter to anyone else what the exchange rate is. Not just that it didn't matter to you. So was just trying to explain why it might matter to other people and also the proof of the pudding is in the eating, it *does* matter to people. Otherwise we wouldn't even be discussing it. Link to comment Share on other sites More sharing options...
Parley Posted December 30, 2010 Author Share Posted December 30, 2010 $1 aud + £1.48 Do you mean the other way round £1 = $1.48 ? Link to comment Share on other sites More sharing options...
Parley Posted December 30, 2010 Author Share Posted December 30, 2010 Maybe we need a single world currency, then it all becomes a non issue. Link to comment Share on other sites More sharing options...
sgperry Posted December 30, 2010 Share Posted December 30, 2010 A 40 year old could have worked and saved for 20 years. Hardly a rich retiree, they are also likely to start earning and paying Australian tax and might do so for another 20 or 25 years. Fair point - for those folks i guess its a matter of looking at what you lose when you exchange v what you earn over the next 20 years of working. Tricky decision to make. Link to comment Share on other sites More sharing options...
Guest Tinkertailerdog Posted December 30, 2010 Share Posted December 30, 2010 Once UK interest rates start moving up i'd hope to see a correction in the rate. My prediction is UK interest rates will increase by around 2-2.5% by end 2011 which should see the Aus$ @ 1.85-2.00. Hopefully...... Link to comment Share on other sites More sharing options...
fleabo Posted December 30, 2010 Share Posted December 30, 2010 Well you said that you think it shouldn't matter to anyone else what the exchange rate is. Not just that it didn't matter to you. So was just trying to explain why it might matter to other people and also the proof of the pudding is in the eating, it *does* matter to people. Otherwise we wouldn't even be discussing it. The proof of the pudding is not how many people discuss the exchange rate, but how many people decide not to migrate because of the poor exchange rate. I suspect the proportion is quite low but I have no figures to back that up. I would have migrated had the pound and AUD been at parity. Personal circumstances dictated that. Everyone is different though. I wonder whether folks generally have a threshold exchange rate at which they will sacrifice or put on hold (indefinitely) their migration to Australia. Link to comment Share on other sites More sharing options...
chalkyhill Posted December 30, 2010 Share Posted December 30, 2010 I hope the exchange rates stay at this level or go lower in case our flat doesn't sell in the UK and we have to start sending money back. Link to comment Share on other sites More sharing options...
Life on easy street Posted December 30, 2010 Share Posted December 30, 2010 It will still be $1.51. With the exception of Germany most of the Euro zone is screwed and will continue to be so for many years. Economic growth will all be hapenning in the emerging economies and they may well choose to bypass 'The West'. Though I do take SGPerry's point that most out here view the AUD as being overvalued - they can hardly contain themselves on ABC in the morning when recounting the current AUS-USD rate.' How high is it today?...How high...way hay!' But my view is that the exchange rate should not matter a jot to anyone thinking of migrating here. Why that may be true for some one in the early 20,s with no assets. Some one in the late 40,s / early 50,s that makes a huge difference and can mean the difference Between having the choice of retiring at 60 or earlier and having no choice. Link to comment Share on other sites More sharing options...
fleabo Posted December 30, 2010 Share Posted December 30, 2010 Some one in the late 40,s / early 50,s that makes a huge difference and can mean the difference Between having the choice of retiring at 60 or earlier and having no choice. Do you think that would be enough to stop that someone from migrating? Link to comment Share on other sites More sharing options...
saunders clan Posted December 30, 2010 Share Posted December 30, 2010 We think it'll go up. I'm going to guess at..........1.9ish. To join in the debate of the exchange rate affecting one's choice to migrate, It would certainly change things for us if it does not get better. We will not sell our house in England but rent it out and still emigrate. We have saved a lot of money to take and will lose out considerably with this poor rate. We have humble backgrounds and know that money is certainly not everything but part of emigrating to Oz is for us to use our money as a springboard so we do not have to slog our guts out. We always intend to work and will never sponge, but what's wrong with wanting a better life in this sense? We have within our grasp a life with no mortgage, a house bought and paid for and money in the bank. I am proud of us for having what we have worked hard for and refuse to lose out. It depends what you want and who you are. If it stops you emigrating then that's the right decision for you. If you go ahead regardless then good luck. Link to comment Share on other sites More sharing options...
KIRK AND CO Posted December 30, 2010 Share Posted December 30, 2010 I hope the exchange rates stay at this level or go lower in case our flat doesn't sell in the UK and we have to start sending money back. And you could lose that way as well its a deal or no deal situation. You could look at it as buying shares when they are at there highest you have greater chance of loseing. The dollar may drop more but over the long term the £ will return. The winners will be the ones who can sit it out in the uk still earning good money & can pick there moment. Link to comment Share on other sites More sharing options...
fleabo Posted December 30, 2010 Share Posted December 30, 2010 We think it'll go up. I'm going to guess at..........1.9ish. To join in the debate of the exchange rate affecting one's choice to migrate, It would certainly change things for us if it does not get better. We will not sell our house in England but rent it out and still emigrate. We have saved a lot of money to take and will lose out considerably with this poor rate. We have humble backgrounds and know that money is certainly not everything but part of emigrating to Oz is for us to use our money as a springboard so we do not have to slog our guts out. We always intend to work and will never sponge, but what's wrong with wanting a better life in this sense? We have within our grasp a life with no mortgage, a house bought and paid for and money in the bank. I am proud of us for having what we have worked hard for and refuse to lose out. It depends what you want and who you are. If it stops you emigrating then that's the right decision for you. If you go ahead regardless then good luck. That is a great post and you should be proud of what you have achieved. You have captured the main thrust of my arguement and that is that you still plan to migrate, even though the exchange rate is so poor and shows no sign of improving (and some would say quite the opposite at this time). The exchange rate (or more precisely, your prediction of what the exchange rate will do in the next few years) does have an impact on how you manage your assets, but the fundamental decision of whether to migrate or not has not been affected. (But please tell me if I have misunderstood your post?) Cheers and good luck! Link to comment Share on other sites More sharing options...
Guest chris955 Posted December 30, 2010 Share Posted December 30, 2010 Seeing as the this year saw the lowest number of people leaving the UK permanently in something like 10 years I wonder if the rate has influenced that ? I think most people see through the Daily Mail doom and gloom headlines but the exchange rate would also have an effect I would imagine. Link to comment Share on other sites More sharing options...
Guest guest32776 Posted December 30, 2010 Share Posted December 30, 2010 I love the way the Aussies see their strong currency as evidence of a kind of macho sporting-style prowess - may be they were chanting FOREX quotes as they sloped off the pitch after losing the Ashes. It's almost as if they don't see the correlation between the fact tourism has dried up and there are virtually no sellable exports and unemployment is extreme in any towns not dependent on some sort of mining/mining support. A weak currency is deliberate - the UK government would be happy if it were at parity - it is the standard technique to boost exports and lift a country from recession... What do they care if a few poms wanting to migrate to Oz suffer a bit!! Link to comment Share on other sites More sharing options...
Parley Posted December 30, 2010 Author Share Posted December 30, 2010 I love the way the Aussies see their strong currency as evidence of a kind of macho sporting-style prowess ! I like it. Aussie Aussie Dollar...... Oi, Oi, Oi. Not sure it will catch on. Link to comment Share on other sites More sharing options...
Guest chris955 Posted December 30, 2010 Share Posted December 30, 2010 Yes you are spot on, the strong currency is viewed as a fantastic thing for the country when in fact the total opposite is the truth of the matter. As you say the UK Government will be in no hurry to see the value of the pound rise. It doesn't help when some members on here keep on endlessly about the country being bankrupt and being no good for the country etc. Link to comment Share on other sites More sharing options...
pablo Posted December 30, 2010 Share Posted December 30, 2010 Yes you are spot on, the strong currency is viewed as a fantastic thing for the country when in fact the total opposite is the truth of the matter. As you say the UK Government will be in no hurry to see the value of the pound rise. It doesn't help when some members on here keep on endlessly about it. Like you do about wanting it to be $=£ because it would suit you yer mean?:radar: Link to comment Share on other sites More sharing options...
KIRK AND CO Posted December 31, 2010 Share Posted December 31, 2010 Like you do about wanting it to be $=£ because it would suit you yer mean?:radar: I think I will bow out of this one LOL Link to comment Share on other sites More sharing options...
pablo Posted December 31, 2010 Share Posted December 31, 2010 Explain this to a financial idiot pls.........i understand a weak £ means better exports yes,so what level should we let it drop to,,,,,,,,,,,,,,,,,,,,£1=$5 will that make us better off again?!! There MUST be downsides to a weak £,or is there?whats the beneficial weak £ cut off point then?just taking the weak £ exchange rate to the extremes+asking:cute::wubclub: Link to comment Share on other sites More sharing options...
pablo Posted December 31, 2010 Share Posted December 31, 2010 I think I will bow out of this one LOL Right tho kirk isnt it?chris is forever saying he hopes the £ drops even more,yet OTHER members keep on ENDLESSLY about it:no:,im only telling the truth:cute: Link to comment Share on other sites More sharing options...
pablo Posted December 31, 2010 Share Posted December 31, 2010 :angel_happy_face_ha:wink: Link to comment Share on other sites More sharing options...
Parley Posted December 31, 2010 Author Share Posted December 31, 2010 I think whatever the rate is there are winners and losers. What may be good for exporters is obviously no good for importers. Swings and roundabouts. Obviously low rate is bad for people leaving UK but good for people going to UK. Winners and Losers... Link to comment Share on other sites More sharing options...
pablo Posted December 31, 2010 Share Posted December 31, 2010 I think whatever the rate is there are winners and losers.What may be good for exporters is obviously no good for importers. Swings and roundabouts. Obviously low rate is bad for people leaving UK but good for people going to UK. Winners and Losers... More on here GOING to oz than coming BACK tho ,so im being pragmatic and coming down in fav of the majority:cute: Link to comment Share on other sites More sharing options...
Alan Collett Posted December 31, 2010 Share Posted December 31, 2010 Explain this to a financial idiot pls.........i understand a weak £ means better exports yes,so what level should we let it drop to,,,,,,,,,,,,,,,,,,,,£1=$5 will that make us better off again?!!There MUST be downsides to a weak £,or is there?whats the beneficial weak £ cut off point then?just taking the weak £ exchange rate to the extremes+asking:cute::wubclub: Downside is more expensive imports - eg price of petrol, imported food, etc. Up goes inflation. Up goes interest rates. Up goes unemployment. In a nutshell ... from a non economist ... Happy twenty-11! Link to comment Share on other sites More sharing options...
Guest guest32776 Posted December 31, 2010 Share Posted December 31, 2010 Explain this to a financial idiot pls.........i understand a weak £ means better exports yes,so what level should we let it drop to,,,,,,,,,,,,,,,,,,,,£1=$5 will that make us better off again?!!There MUST be downsides to a weak £,or is there?whats the beneficial weak £ cut off point then?just taking the weak £ exchange rate to the extremes+asking:cute::wubclub: Basically Pabster - when a currency is so weak that every other country is buying their exports and its inhabitants only buy locally prices rise as people get wealthier and this liquid cash finds its home in property and other assets driving up their prices. Interest rates then have to go up to prevent these assets becoming bubbles - with a constant amount of buying required in order to prevent a collapse. Compulsory items that have to be imported such as fuel must also be factored in as this prevents prices falling to rock bottom as there is no point producing if there is no financial benefit ( factor in loan interest, cost of making people redundant, sunk costs in assets etc) ...Once interest rates have risen to remove some cash from the money supply and slow an economy down the value of said currency will rise anyway as investors buy into it. See me after the lesson for extra homework. Link to comment Share on other sites More sharing options...
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