Someone whos got knowledge: Please give me the 411 why £1=$2?
 

I know its the economy and exchange rates and that the $ sucks, but why is it that the dollar sucks.


what causes currencies to get stronger and weaker.

I also know that the euro is fixed, so why on earth dont they "fix" other currencies.


Is there anyway I can get round this problem, for example setting up a USA bank account or something.

How long do you expect this to last?


but if you could just give me a brief summmary in exchange rates, it would help me out alot thanks.
I learnt it all last year in business studies but have forgetten, even though I got a B in the econmy exam

the pound has always been close to 2 to 1 anyway, no huge change

Well, it's very complex, but I'll try to explain. These are the major factors affecting currency fluctuations:
1.Strength of a countrie's economy
2.Authority of the government issued that currency
3.Supply and demand for the currency

Now the example of the US - this country imports much more than exports, it means that the countries which have export orientation depend on the US and its ability to buy goods. The less $ costs in terms of other currencies the less goods the US can buy. The same explaination for other currencies.

When a countrie's economy faces crisis it always reflects on currency exchange rates.

The weak dollar makes a HUGE difference to a lot of us. 1.6 or 1.8 to 1 is VERY different to 2 to 1..

And during this period, Americas economy is pretty much drowning

Euro isn't fixed, Euro was fixed just for participating countries, because without this measure that would be impossible to introduce into practice one currency for all the countries with different states of economy.


LOL...It's impossible to escape exchange rates fluctuation

Don't know much about the current state of American economy, but I'm sure the rates will get higher when the US fixes its major problems

No it's not..

If you know roughly the sort of income your going to have $$ wise going forward and can live with the current rates, find a business bank that will do you a currency swap. It's a derivative where you fix the exchage rate going forward, if the $$ goes lower your swap pays out if it goes higher you pay the difference between the rates. either way you're locked in at the curent exchange rate.

someone with knowledge please :1orglaugh :1orglaugh

thanks i thought it was something to do with exports and imports
Thanks man two great reasoning answers
too much trouble plus im not earning enough to bother with stuff like that :helpme but nice idea.

1.89/1.93 to 1 is where it usually sits

2.00 to 1 is not a huge leap, its a fluctuation you fucking dipshit

what do you mean close to 1:2 are you are fucking moron or something, it hasnt been this bad in about 25 years.


http://finance.yahoo.com/q/bc?s=GBPU...=on&z=l&q=l&c=

take your dipshit remark and shuv it up your own ass :1orglaugh :1orglaugh

1.93 and 2 are not much different you fucking dolt
for god sakes

look at it like this moron
<------------------>1.93
<------------------->2.0045


does that visual aid help?

now if it had been at say 1.50 to 1 and suddenly jumped to 2 to 1 then I would shit, otherwise just breathe somewhat normal

you just proved my point cocksucker

now please kill yourself

It has made just that jump over the last 3-4 years.. It IS a big fucking difference..

I was in London in February 2004 and it was 1.91 to 1

NOT A BIG DIFFERENCE

to go to 2.00 three fucking years later

P.S.

The sky is fucking falling, everyone duck and cover

Month Average GBP/USD

1/2003 1.615722
1/2004 1.820091
1/2005 1.881294
1/2006 1.763238
1/2007 1.958482

And it is just over 2 now.. You don't think a 20% hit in just over 4 years is significant? I can tell you that is matters to quite a few of us who rely on the US dollar for our income..

sell me your sites

get out now while the getting is good

Ha, you don't have anywhere near that kind of money..

especially if you sell in the pound ;)

lol :)
Actually I would prefer it in DKK, then I wouldn't get slapped with the ~8$ exchange fee :)

your a retard shok, please leave this thread, there is no room for retards in this thread, hense the thread title "someone whos got knowledge"

You dont have knowledge.

hammertime.

forget it arguing with u is like arguing with a stick

lol

shut the fuck up cunt

I have officially taken over your thread because you are a cocksucker

deal with your 7 cent spike with a gallon of cough syrup and sleeping pills

no one will miss you

BTW

Im just kidding

This is shitty, especially since Im heading to London on tuesday

I just felt like arguing for awhile before I head to the gym, it pumps me up.

No hard feelings ;)

Are you going Tuesday AM or Tuesday PM?

Just askin'......

A weaker dollar is actually good for the U.S., considering our exports lag our imports by an astronomical amount.

As for the U.S. economy, it is growing a bit slower than the trend rate, but unemployment is very low, inflation is very low, and the stock market is rocking.

People who say our economy is in trouble have no clue what they're talking about.

Okay, here is the short bus explaination:

As the US dollar drops, two things happen:

1) It becomes cheaper to produce things inside the use, and to keep service jobs in the US, because the cost of importing good or sending work offshore goes up

2) As the dollar drops, the stock market indexes in the US tend to rise because of (a) increased employment (see 1 above), (b) increased revenue when expressed in US dollars for American companies that sell overseas, and (c) the combined effect which suggests a more robust economy.

The reality is that a cheap dollar in the short run makes the US economy run, but will likely lead to inflation over time unless things stablize. It does, for the moment anyway, make the current President look like he has a good economy policy, because most people aren't savvy enough to realize that they are losing value relative to the rest of the world.

I disagree with this. The strength or weakness of the dollar has nothing to do with the President or his policies, the money supply and inflation are controlled primarily by the federal reserve.

If the dollar is weaker yet there is no real inflation in the U.S. economy then that would lead one to believe that it's the monetary policies of the other countries that are causing their currency to rise rather than our currency to fall.

Currency exchange rates change because of changes in foreign investments, not imports and exports.

When a US company invests in europe, they sell dollars to buy euros. The supply of dollars is increased and the price of dollars drops to balance the demand.

The opposite happens when US borrows foreign funds. They get a lot of EUR which they then need to sell to get dollars, which creates a demand for dollars, which increases the value of the dollar relative to other currencies.

What complicates this for USA is that a lot of countries, especially china hold dollars as reserve foreign currency. When China sells its American investments like bonds who are in dollars, then it lowers the value of the dollar. Recently China has been lowering its foreign reserve of dollars in favor of euros and yen.

The only thing the US can do is to hike interest rates to attract foreign investment, if they want a stronger dollar.

That will however cause unemployment and slow down the economy.

Of two evils a cheap dollar is better for the US

guys these are great answers, thanks for taking the time for clearly explaining this to me.

this is so 80 years ago

No hard feelings at all

You're welcome. Lets just hope the US will get its act together and fix this mess.