
UK FTSE 100 finishes week up 2% - mbgaxyz
http://www.google.com/finance?q=INDEXFTSE%3AUKX&ei=IN1tV4H8KsiwiQLZ3ZyoDg
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lhl
For those interested in a potentially more relevant number, here is the link
to the FTSE 100 priced in USD:
[http://markets.ft.com/research/Markets/Tearsheets/Summary?s=...](http://markets.ft.com/research/Markets/Tearsheets/Summary?s=UKXUSD%2B:FSI)

It is -10.92% this week, and -22.26% for the year. You can add in a comparison
to the FTSE 100 in GBP.

Note: the GBPUSD hit a 31 year low today. The GBPUSD is down about 13% for the
year:
[http://markets.ft.com/research/Markets/Tearsheets/Summary?s=...](http://markets.ft.com/research/Markets/Tearsheets/Summary?s=GBPUSD)

~~~
partiallypro
Europe as a whole has been on a similar track, Europe's economy is a hot mess.
Really, you could argue that the UK was the healthiest economy in the EU (or
at least, the most diverse.) Germany is a powerhouse, but really if the Euro
were to strengthen it would crush their exports, which is really where they
thrive. The Euro is the best thing that has happened to Germany. It
artificially lowers their currency valuation because of poorer member states,
and the EU itself gives Germany immense power over other member states because
they have deeper pockets. Then to top it off, Germany makes the ECB policy
just tight enough (from being a stronger economy) to strangle off the economy
of everyone else.

There's a reason many of the other countries want to leave, not having their
own central bank that can loosen credit or even keep their interest rates at
the market level is murdering their economies. There are other reasons, like
dumb laws and regulations, but a struggling economy and a massive welfare
state is a perfect combination for angst. Especially if you throw in an
immigration crisis caused by external conflicts.

The UK not adopting the Euro imo is one of the best decisions they had ever
made economically. I don't think Brexit is going to sting the UK as much as
it's going to potentially sting Germany if other member states start to think
about exiting.

~~~
mtanski
Without a central bank you can use inflation a means of shedding your debt
burden. And the Germans (a nation of savers) hate inflation.

Getting out of crushing debt burden (if the debt is denominated in local
currency) by inflation is not really a great solution. But in many cases it
the best of bad solutions. Everybody locally suffers from inflation equally
(proportionally).

... With the exception of foreign lenders who lent money in local currency
suffer the most (wrong side of FX). But again that might be the least bad
option. It's the same idea as high hotel and travel taxes (parking, car
rentals, cabs from airport)... Because the best tax is the one you don't have
to pay yourself, instead it's the tax that people who don't live here pay.
And, that's because they don't vote here.

Also, I'm not talking about runaway inflation. But higer the the gold standard
of ~ 2%.

if you look at Greece. They would probably be a good candidate for the
servicing debt via inflation as the least bad option. Except they don't have
that option anymore. Instead the lender countries are going to keep pretending
for the next 10 years that they will see all their money back. And they'll do
that but lending more money to Greece and making it poorer at the same time.
You know, ze Germans.

~~~
ohthehugemanate
So, what's the difference here between Greece and, say, Hawaii? HI is a debt
ridden state with no control over a central bank to help it address the
problem.

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bpodgursky
It's amusing how the weakened pound is being hailed in the media as the End
Times, and yet the weakened pound is the reason British stocks (minus
financials) are actually doing fine -- it's very good for export industries.

If Greece could have just let their currency depreciate, they'd be in a far
better spot than they are now, plausibly even competitive. But it was the
tyranny of the Euro, driven by Germany that kept its currency strong.

~~~
radicaldreamer
That's fine until you realize long term, that common market won't be around
for the UK to export to -- at least nowhere near as open and free as it is
today.

~~~
disordinary
Good for the countries of the Commonwealth who, despite being part of the same
organisation and historical empire, and even all having the same head of state
(the Queen), have been locked out of trade deals with the UK because of the
EU.

What's the bet the UK falls back onto the "empire" that it has so long
ignored.

~~~
gcurt2
Most commonwealth member states don't have the queen as their head of state.
Only 16 of the 53. With the exception of Australia, NZ, Papua New Guinea and
Canada these 16 are almost all small (in many case island) countries. You can
very be sure that Pakistan, India, South Africa and Nigeria along with 33
other countries don't regard Queen Elizabeth II as their head of state.

~~~
disordinary
I should have said Commonwealth Realm then.

------
mediumdeviation
The FTSE 250, which is more representative of domestic companies instead of
large multinationals[1] is still down more than 7%.
[https://www.google.com/finance?q=INDEXFTSE:MCX](https://www.google.com/finance?q=INDEXFTSE:MCX)

[1]: [http://moneyweek.com/ftse-100-v-ftse-250-why-have-they-
diver...](http://moneyweek.com/ftse-100-v-ftse-250-why-have-they-diverged-by-
so-much/)

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radicaldreamer
Not in terms of any currency except the massively devalued GBP

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partiallypro
The pound sterling falling helps British exports by lowering their cost to
international markets.

~~~
SixSigma
I wonder how long it will take to switch from being a net importer

[https://www.uktradeinfo.com/Statistics/OverseasTradeStatisti...](https://www.uktradeinfo.com/Statistics/OverseasTradeStatistics/Pages/OTS.aspx)

~~~
gonvaled
No time, really. This can be achieved practically overnight, thanks to now
being free from the EU hegemon. Now the UK will hapily ssil to its glorious
and deserved destiny!

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LeoPanthera
But only because of a huge fall at the start of the week. It's down 1.3% on
the month.

~~~
rayiner
1.3% on the month! It's the apocalypse.

~~~
colechristensen
GBP/USD is down 7% on the month. We'll round up because we're being
apocalyptic... according to outside investors, the UK economy lost 10% of it's
value overnight.

~~~
rayiner
The value of currency is not a measure of the value of the economy. CAD has
lost 35% versus the dollar since 2011. But the Canadian economy has grown
slightly more (in relative terms) than the US over that period.

~~~
mbgaxyz
And if we were to measure everything against Bitcoin since 2009...

