That is because, in their opinion, growth supports the value of a currency. For once, they are likely to be right. If growth increases either the value of trade from a jurisdiction or productivity within it, then the value of its currency invariably increases.
The UK exports more than it used to, hte UK economy is larger than it used to be. The £ is worth less than it used to.
Proof is, therefore, somewhat lacking for this contention.
“value of its currency invariably increases” – against what? same with your assertion the pound is worth less than it used to… compared to the dollar, yes, compared to the Euro, yes. Compared to the price of a TV? compared to a holiday?
Both statements are able to be true, the pound is worth more compared to a loaf of bread and also worth less compared to the dollar… all that means is that our productivity has increased but it has increased less than other countries productivities…
Maybe he thinks that: yesterday £1 bought one bottle of French Red, today £2 buys one bottle of French Red, that means the pound is more valuable. See, the number’s gone up. It’s now *two* pounds.
‘Relative’ is the word missing from Spuds statement. Relative growth increases your currency, as all currencies are now valued in relationship to each other. If you consistently grow at 3% while your peers grow at 2% then yes, your currency will rise. Ask the West Germans how it works.
Remember the “scientific method”. Work out what you want to achieve, then produce a scientific explanation, however unlikely, that achieves it. Discarding any other explanation.
Doesn’t he mean price? The value of a currency is the quantity of goods & services it can be exchanged for. And since inflation, he’s talking obvious bollocks.
The value of a currency is inversely proportional to how much you print of it.
Obviously.
1. Never argue from a price change.
2. Currency valuations are usually a matter of who sucks less.
If anyone doubts this retard is as close to pure evil as you can find head over to ‘Funding the Future’ and read his post on ‘Wes Streeting needs to talk about COVID’
The bastard wants compulsory masks and lockdowns brought back. Surely he has to be killed off?
Also Tim you are missing the big issue:
We might end up with a tradeoff, which is, will we have enough water for the world so that people can drink?
Will we have enough water for the world so that people have enough food?
Or will we have AI?
And that’s a tradeoff that I don’t think is being discussed as yet.
And I think it needs to be.
Presented without comment
This one is even more interesting I find – he wants the Libel laws changed so he can make accusations of corruption without any need to prove them:
As anybody who’s ever published a YouTube video, put something on TikTok, written a blog post, let alone been a journalist knows, in this country there are exceptionally penal libel laws.
You have to be able to prove what you say is right in the UK. A person who complains about what you’ve said does not have to prove that you’re wrong, you have to prove you are right.
The consequence is exceedingly draconian. In the UK, it is very hard to call out corruption because unless you have emphatic proof that somebody is doing something wrong, you can’t even speculate on whether that might be happening or not. People quite literally get away with, well, not quite blue murder, but most certainly with things that should not happen as a result of the libel laws in the UK being far too weighted in favour of those with wealth and power who can go to court and bring libel actions against people who are trying to call out what is wrong in society.
Perhaps someone should alert him to factors such as relative interest and inflation rates in different countries. Perhaps it is too early to tell him about the state of the current account and public finances. They might be too advanced for a sub-entry-level student
Growth in a trade surplus, usually, helps support the value of a currency but not just unspecified “growth”.
Growth in money supply in excess in growth in GDP usually *reduces* the value of the currency.
Growth in imports in excess of growth in exports also tends to depress the exchange rate.
Of course one needs to *think* in order to realise that simple growth is not, of itself, a sufficient condition for support of a currency
If growth increases either the value of trade from a jurisdiction or productivity within it, then the value of its currency invariably increases.
If I’d written a paper in my junior year Macro Economics class asserting the above, I’d have received a charitable “D” and a whole lot of scorn.
I wonder what could have inspired his rant about the libel laws. https://pressgazette.co.uk/publishers/digital-journalism/tory-chief-lord-ashcroft-settles-website-libel-claim/
Is he still bitter from the last time he got taken to court for libel. I seem to recall he lost despite being defended by one of the country’s finest legal minds (himself)
He called trump a rapist last week so does he care about the rules or is he more worried about people closer to home who might actually sue him
@ Van Patten
Truth is almost invariably an adequate defence against a libel suit, so is “Public Interest” and “Fair Comment”, but I doubt that Murphy would recognise fairness if it accosted him immediately after the Ghost of Christmas Past.
@ Dennis
An increase in Productivity creates growth rather than vice versa, so Yeah.
Intersting for a man to want the libel laws to be relaxed at the same time also to support the Nazis in the SNP whose respect for free speech is nil.
Actually, I might just raise a hate crime complaint against the cvnt.