Raleigh are increasing prices by 10% as from August 1.

[Benjahmin]

One wonders whether a cheap £ is intentional government policy.
KudosDave

Absolutely, for sure, with no doubt.
Succesive governments (of whatever stripe) have indulged in deficit spending, to make themselves popular. They even borrow (thats to say create) money in order to pay off debt that is coming to term, bonds etc. The debt is now so huge that even a small move in interest rates would take a huge slice of GDP in order to just pay said interest, not touching the principle. In fact that's what's been happening for years. So they have two options:
1 Open Default and become an international pariah that no-one wants to lend to.
2 Inflation so paying back debt with pounds that are worth less. A million today does not buy what a million 10 years ago bought. So lower pound = back room boys going,'whoopee'. Let's have some more.
Trouble is, every country in the world is in exactly the same position, so they're all trying to do the same thing. It's a race to the bottom. Which will be the first major currency to hit the wall?
So £/$ or pound /euro, doesn't really matter long term, they will rebalance.
What really matters is that the drive for inflation is robbing the wealth of anyone who is a saver (for old age or whatever). £1000 held for 10 years isn't going to buy much after that time. Inflation figures may not seem high but it is compound. The BofE's target is 2%, that can rob you of a life's savings quicker than you think.

 

[The Cornishman]

We have the likes of KTM Col - a bike guy - in regular contact with a broker and checking exchange rates.

Ludicrous - you are supposed to be entrepreneurs, not currency speculators.

Anyone who is manufacturing goods that rely on imported components has to be on top of the currency situation.
Nothing wrong with following the markets either. For years Porsche made more that way than they did from whatever it is that their main concern does.

 

[Crockers]

Anyone who is manufacturing goods that rely on imported components has to be on top of the currency situation.
Nothing wrong with following the markets either. For years Porsche made more that way than they did from whatever it is that their main concern does.

True....but then they took their eye off the ball, speculated against VW, made a bid and are now owned by VW.

 

[Wisper Bikes]

David (Miall).....wishing for your old public school days,hehe...
KudosDave

Ahhhhhh...... if I could spell I'd be dangerous!

 

[Timbo]

I'm a UK ex-pat living in Euroland. I didn't get a vote, so I can't be blamed. (I lost my UK vote after 15 years away. However, if you have certain UK income, the Revenue won't let you have it until they've taxed it - whatever happened to ' no taxation without representation'? Perhaps I should be tipping bales of tea into a harbour somewhere...although I gather that plans are afoot to change this. Anyway....) I consider myself to be European. However, having worked for many years in close contact with the European Commission, I believe that there's a huge democratic deficit at the heart of Europe. The Commission is only the Civil Service, and Junker is just its titular head. How long would the head of the UK civil service last were he/she to get up and start making political statements criticising the government and people of another sovereign country as he does? Clear desk by the end of the day, I imagine. Given the sort of hostile and threatening statements from that and other quarters in Europe, my question would be - is this a club you would want to be a member of? You can't hold a union together with fear. Anyway, as I say, I didn't get a vote, so I have no opinion....

 

[trex]

I'd say yes. All political structures have some degree of democratic deficit otherwise it's chaos. The EU is a much better supranational structure than for example the UN, NATO and WTO that we are part of.

 

[flecc]

I believe that there's a huge democratic deficit at the heart of Europe. The Commission is only the Civil Service, and Junker is just its titular head.

This is clearly both intentional and necessary to achieve union.

The principle is that the eventual benefit of union as one country is so great that it should be pursued by the necessary means. Since union could never be achieved by democratic negotiation between multiple countries, a degree of dictatorship is necessary.

There is a degree of safeguard, the EU parliament does have powers over what the EU commission can approve as a result of the increased powers it gained from the 2009 Treaty of Lisbon.

Effectively the Parliament and Commission are co-decision bodies, with the European Council a distinct and separate body.
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