Sterling crashing down

[Jool]

Thank you Gordon, I totally agree. Sadly this forum seems to me to only reflect the way of the world where so many of the fortunate lack any kind of genuine empathy or compassion for others............

[katy]

I think some of you misread what DA posted. He pointed out that the Government and people in the UK are not going to worry about currency fluctuations affecting a few ex-pats. That is true. I loath Gordon Brown but a low pound is needed right now. Visitors are flocking in on the ferries etc and spending.

It would have to be someone very rich to not be affected by the fall. Why do many post that we should adopt the Euro If the UK were to enter now we would be locked in forever at 93 pence.

[El Cid]

If the UK were to enter now we would be locked in forever at 93 pence.

What would be really beneficial is if Spain scrapped the Euro.

With the current state of the Spanish economy we would be getting well over 500 pesetas to the pound!

Not a likely scenario though.

Sid

[Scot]

I too feel sorry for people who are struggling to make ends meet. We are in this category too tho I can see a light at the end of the tunnel as there are opportunities available to us in the UK - we did not have this comfort in Spain and I remember feeling the despair and desperation that Jool and many others are experiencing. I live a very simple life wherever I may be and only look for the basics ie food, warmth (now in terms of central heating not sun!) and a cosy bed to sleep in. That's enough to make me happy. However, most of my "friends" in Spain are struggling due to overspending - regular flights back to the UK, lavish Xmas and birthdays, private schooling, drinking and dining out. They have all borrowed heavily and live way above their means. Many are now completely broke, not paying their bills and do not have the means to get back. These "friends" I have no sympathy for.

[Jool]

Hi Scot,

I´m glad you are doing better, I have to say though that I am not in despair or desperate (yet!) just worried. As you know, there is little help here if you have no work, even for the spanish themselves, and few jobs around even though I do speak spanish, and thus I feel rather helpless at forces way beyond my control. Our mortgage will at least go down at the end of this year after a year of paying at a very high rate, dis-proportionate compared to Euribor rates.......

Like you I have never gone for the lavish lifestyle (too many dogs anyway!) or even had a holiday for 4 years now.......and I just hope things improve soon, I have family down south in the UK and they say it is quite depressed down there too.

[katy]

Jool you are very knowledgable about spanish law, taxes etc. why not try offering your service filling out tax forms etc for people from the UK I know someone who does it on the CDS and he drives a newish Bentley. He always seems to be busy, does property transactions too and undercuts Lawyers and gestors....and you would be paid in Euro.

I haven't seen any depression in the South (UK) everything is booming, restaurants etc. I am sure some are personally affected but retail sales were up over 2% last month.

[Jool]

Oh my goodness Katy, what an idea!! Thank you for the thought but the taxman in Spain scares me rigid and I don´t think I would feel confident enough to do it for others, if I got it wrong I would want to compensate them and for that I may need a lottery win!! I know I would not be liable in law but morally I would feel responsible. Your idea is something I will think about some more though, thank you again.

Lovely image of me swanning around in a Bentley though.........lilac or turquoise I think!

[frank]

"What would be really beneficial is if Spain scrapped the Euro."
You´re probably right, Sid, but it´s not really an option. There are mutterings all over about France, Germany etc would all like out, but they are all pretty much stuck with it.

[markwilding]

What would be really beneficial is if Spain scrapped the Euro.

Sid

The problem for Andalucia is that Britain is not in the euro.
Because most other EU countries are, there hasn't been any currency fluctuations between them. Even if Spain didn't use the euro the problem of a high pesata amd low pound would still arise sometime in the future.
You could argue that because house prices and inflation were rising so fast that an independant Spanish bank would have lifted interest rates a 3 or 4 years back forcing the pesata to rise earlier, so Spain being in the euro has kept the exchange rate lower for more years
Whatever your view on the euro the only way for people relying on UK earnings or pensions on a tight budget not to have to suffer during these fluctuations is for both countries to be in the Euro,or in the case of pensions the government paying a bit more now, however, clawing back money if the pound rises, the way my wife was paid by the Spanish government in London. She was always paid the same in pounds even though the salary came from Spain in euros.

If britain had entered the euro when the pound was at it's highest level. It would have made exports expensive forever the only British beneficiaries would be the expats being paid in the UK and living in the euro zone. The same is true now in the opposite direction.
The problems that Andulica have are not problems in all Spain, around the tourist areas many buildings have been built for too few buyers. These houses are 2nd homes for most, which were always going to be the first to suffer in any downturn.
In this part of Spain we aren't suffering so badly from the recession,Here the service industries generally service the people that live here . Those people are still here and will be here whatever the economic climate. of course things aren't going so well as before, but when I go out at the weekend the resturants are busy as are the bars shops etc House prices haven't dropped much and there is movement.

[IreneD]

When I first started joining in on Andalucia.com a year ago, my OH and I were going to retire this Autumn and move to our holiday home in Spain. DA (amongst others) urged caution and I am extremely grateful for the warnings.

We do retire imminently (our shop closes on Saturday!) and plan to spend time in both countries, not sure which proportion yet. My OH is going to job share here in the U.K. (a driving job) to supplement our pension - we are far from wealthy (our U.K. 'residence' is a caravan!) and with the awful situation with the euro, we know we won't be able to afford flights, or even pay our bills in Spain to maintain the house there without some extra income to top up our pension.

I'm just waffling really, but I suppose what I'm saying is that DA tells it like it is, but that the situation some ex-Pats are in in Spain is dire and ranging from worrying to catastrophic and that could so easily have been us. As I say, we are a long way from wealthy and our looming retirement (well, semi-retirement for OH) does worry me, but I am glad to have the foothold in the U.K.

[Mydogdylan]

I totally agree with Scotty on this one,when they was getting 1.5 euros to the pound whoopee = dinning out most nights,champange and caviar on the balcony for a nightcap
Now 1.03 Euros to the pound and everyones squealing...Tighten your belts and think back to all the money you wasted.

[Beachcomber]

Use the currency fluctuations to your advantage. Buy sterling low - sell high.

I bought sterling at 1,05 earlier in the year and sold at 1,18. I made far more money than if the money I used had been left in the bank at the current meagre interest rates and as all I was doing was swapping currency between accounts there is no withholding tax.

I'm just waiting for it to hit parity then I shall buy again.

[Jool]

That´s ok Beach if you have money to play with like that......wish I had, good for you.

I hate the way so many people make assumptions or class us all in together with those who have lived irresponsibly..........I have not and never have dined out much (once or twice a fortnight for menu del dia!) or wasted money on champagne or caviar (yuk) ...but thus lumping us all together as the profligate seems to be homogenising us and reduces any possibility of understanding, communication or compassion for those who are struggling and did not waste money before.

[Devils Advocate]

Irene D. You are a different kettle of fish. You've made what you want happen without any gripes, you've forward thought most of the way along never using the "poor me" card and always posted upbeat snippets of where you're up to.

I'll tell you something too. You've done the deed at the worst possible time.................not the best time like a lot did so I've a hunch and I hope things can only get better for you.

I've been accused on this thread of lacking compassion. Not so, I have it in bucketfulls. What I do lack is any sympathy for the "I need help or poor me or what should I do" brigade, who seem never to let up, and who also always seem to have someone or something to blame for their own shortcomings...........never their own fault ever,the world just seems to be full of them at the moment and if you dare mention not everyone shares their personal views you are branded a capitalista

The original post asked for a way to "manage" the crisis, I wonder if Beachys or Katys ideas will be acted upon?

Now surely there's nowt to offend anyone with this post surely

[Jool]

Your "compassion" shines through DA......and yet again you have distorted my original post, I was not seeking info to handle the crisis as you state, merely the latest sudden exchange rate drop - but then I guess you did not read Gordon´s post properly either given your latest submission.

As the author of the original post I was not looking for work but seeking ideas on possible ways of handling the exchange rate problem (not that I really expected there would be any but if you don´t ask you don´t get), nothing more than that, it was you who personalised it and made it much more in your own inimitable way. If my full time job (paying in euros) ceases to pay the same then I am always open to change and appreciate the ideas I can manage (like many others on here gambling on money markets is not one I have the resources to do) so fully appreciate the helpful suggestions from the majority who responded.

[Devils Advocate]

Sorry I've distorted nothing. You asked in your original post how do you "manage" your problem.....what have I distorted

People with compassion as you like it to be called have given you a couple of ideas but in your usual nasty way you said to Beachy "good for you" with regards to his money making suggestion and how it's worked in his case.

Now once more what have I distorted?.................my original reply to you on the first page which upset you is still there after the cull, other people have agreed with it and Admin deemed to leave it there so I assume it offended only you for some unkown reason.

[katy]

I would never gamble on currency, about as stable as putting money on the 3.30 at Kempton Many people don't have the flexibility of having money in 2 currencies either.

BTW did anyone read the article in the Times on Sunday regarding currency exchange brokers? Apparently many are not licensed and your money could be gone overnight...has happened before.

[patchdog]

SSSSSSHHHhhhhhhhhh The pound has stopped falling, but dont tell Mervyn King.

[Devils Advocate]

To be honest Katy, your ISAS,PEPS, Stocks, shares etc. etc. are all gambles with money and currencies at the end of the day, although like you I'd never phsyically buy one currency and sit on it for a while in the hope of making money. However if someone trying to be helpful suggested it to me I would not get stroppy about it

[Beachcomber]

BTW did anyone read the article in the Times on Sunday regarding currency exchange brokers? Apparently many are not licensed and your money could be gone overnight...has happened before.

I didn't use a broker. I have sterling and euro accounts with the same bank and just swap funds between them. No charges, no fees. I know in advance that the exchange rate is one céntimo 'worse' than the published rate.