BBC NEWS | Business | Pound close to $2 exchange level — It’s the Iraq war causing this problem. We are slipping into third world nation status.
Sterling hit a 14-year record against the US dollar and Japanese yen as high UK interest rates attracted investors.
The pound rose above $1.99 on currency exchanges, almost breaking the key $2 rate. Against the yen it hit 241.42, a level not seen since September 1992.
Analysts said the shock interest rate rise by the Bank of England had seen many investors shift into the pound and sterling-denominated assets.
Under most circumstances this would be great for exports, but we are a net importing nation meaning it hurts us even more.
Thanks to Ethan Beaman for tip
but we are a net importing nation meaning it hurts us even more. Hurts you maybe. If you work for a manufacturing company that has to compete with cheap overseas cheap, it’s a blessing.
Bush and the conservatives ran on “making America strong” but their insane fiscal irresponsibility has made us more vulnerable than ever.
#19 – That two-class economic system is a transition currently in progress, reflected by the growing income gap. Here in Mexico there is already a well established two-class economic system and the people have come to terms with it pretty well. The difference may be that in Mexico there’s an established aristocracy with a sense of duty toward the mass of people who don’t live like princes. Corporations have no loyalty or responsibility to anyone or anything. They just play the appropriate tunes to manipulate people’s sentiments. “Do people care? People do,” intones the caring, fatherly voice on TV… pimping for Chevron.
One other difference. In Mexico, at least in boom areas like Baja California, there is a growing middle class and the feel you get from people in the neighborhoods is optimistic. They believe, as people in the U.S. used to believe, that their children will have better lives than they have had themselves. The loss of that belief in the corporate U.S. is, well, it’s just sad. See http://tinyurl.com/33osrr (goes to Pew Research findings from poll in May, 2006).
#19 said; ” One other difference. In Mexico, at least in boom areas like Baja California, there is a growing middle class and the feel you get from people in the neighborhoods is optimistic”
Don’t ever show them a picture of Lopez Obrador.
How do you know it’s the Iraq war? You’re starting to sound like a lazy reporter John. And haven’t you already posted that this is because of the deficit, spending, Socual Security, ans trade deficit?