Euro-pound parity consequences



Jack O Neill

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I think you are rather hard on Hammer calling him a waffler. He just likes to big up any jobs coming.

I agree with you re the hassle and redtape involved in setting up and running a business. Far too many hoops, far too much bumf and boxes to be ticked.
you need to do a quick course on wafflers , hammer is a paid part time spin merchant for Fianna Gael and full time waffler , i doubt if anyone takes him too seriously
 

The Old Woman

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That's pretty scandalous, do you have a link?
I asked the Revenue ..... mind you I had to ask quite a number before I found there is a vat policy section in Dublin Castle and there I found that this is a process ... permitted ...... note it is a process thus it is Revenue's interpretation of how the vat directive works....

My issue is it is a process operated by the Revenue that they have never been questioned on or forced to detail publicly the counter consequences on.......

Only a tiny portion of accountants understand this process and many of them work for big business...... I fine it distasteful that our own Revenue act on behalf of foreign business to the harm of small Irish SME's and are enabling foreign business generate profit to the harm of competitive pricing for the Irish consumer

No Irish distributor or agency contract can work given this process ... thus over the years we have seen supply moving off shore to the UK ( thanks to the Revenue..). one would be forgiven for thinking they work for the British exchequer....

It is easy to understand why the Uk government provided a loan to the Irish government at the start of the bailout ..... had our economy "tanked" the level of UK business interest securing substantial profits here and which would have been material harmed would have sent a huge shock wave through the British economy...
 

ON THE ONE ROAD

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lads ... do you never listen ....

The price difference is arising because the Revenue provide MNC with a profit before profit invoicing arrangement.....,.


An UK supplier is "allowed" to ship goods into Ireland on behalf of an UK MNC to its Irish stores and to invoice those goods exempt of vat and quoting an Irish vat number....( cash flow saving). The MNC in the UK is then allowed to onward invoice these goods to its Irish operations having charged an so called cost ( essentially this is an paper profit transaction provided by the Revenue process).

This results in higher cost prices coming into the Irish stores and of course higher vat costs .....

The Revenue have serious questions to answer here .......


if you can back your claim up maybe use an identifiable product as an example, help your observation gain traction by making it relatable in lay man terms.
 

Voluntary

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BoE shots blanks to stop pound slump? Will it work longer term?

https://www.rte.ie/news/business/2017/1004/909657-s-p-on-uk-economy/

The ratings agency said that comments from the Bank of England that a hike might be nearing seemed designed to push up sterling and cool inflation.

"Overall, we believe the Bank and Mark Carney's recent statements are primarily aimed at propping up sterling to reduce imported inflation pressures," S&P analysts said in a report.
 

Tribal

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Raising interest rates would probably tip many heavily indebted brits into bankruptcy.

The populace seem inured to rising prices so absorbing rising import costs through shrinkflation is probably the path of least resistance, it's worked so many times in the past that the GBP current devaluation can be fobbed off as nothing to do with Brexit.
 

Voluntary

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I guess it's tought for BoE. The rising inflation suggests the interest rates should increase, decreasing investments suggest the interest rates should decreas or at least stay where they are.

The economic term describing economies with high inflation and low growth is Stagflation.
" It raises a dilemma for economic policy, since actions designed to lower inflation may exacerbate unemployment, and vice versa."
 

Voluntary

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It's funny how GBP appreciated awaiting BOE decision on interest rates and how quickly it gave back the gains on actual interest rate rise. Pound is back in line with the trend, moving towards EUR parity.

Buy rumors, sell facts.
 

Voluntary

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1 year later. GBP/EUR 1.1
Shops in Newry should soon start accepting EUR for GBP 1:1 as they did in the Big Crisis.
 


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