UK Politics (19 Viewers)
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The long (depending) will require an econ degree from Oxford.
I'll post some general information, or, you can ask @Bjerknes He and I have MBAs, I have a BS in finance and a minor in economics. He has a much more narrowed degree, if I recall, but follows markets and such more closely than I do.
That aside, in short there is a widespread issue of inflation, I'm sure you're aware. That essentially stems from a whip effect in economics wherein whatever x factor happens as the front end of supply there is a 10 fold issue at the consumer or manufacturing level. So, remember when oil futures were negative in 2020? That's because no-one was driving. The market essentially said, "we are at an equilibrium for X demand and Y supply." Where exact production and exact demand/consumption are equal. There, now you have an Econs minor. I say Econs because we are going to talk about Brits and they say Maths which makes no sense without an apostrophe; you would think they would know, as they founded the fucking language.
Okay, so, the world slowly wakes up from this 14 to 24 month slumber, depending on your area, and you have the opposite effect. Demand outpaces supply. Demand for almost everything outpaces the ramp-up in supply for almost everything. Hyper-inflation. Inflation is good and necessary because at a base level you need inflation. You want your 1 of X currency worth less tomorrow than it is today because that encourages purchasing. It drives spend, (M1 and M2 if you want to get super into it) but if there was zero inflation, then you would stuff your mattress with money and wait until a dollar or yen, or fucking gold tooth was worth more tomorrow than today. That discourages consumption, which discourages buying, which causes job loss, which causes blah blah.
To more directly answer your question.
The United States is seen as a "full solution" in the sense that we kind of are grossly independent of the world. Sure we manufacture a lot in China, have a lot of call centers with Vikrams named John and shit, but that's to save money. We could do all that shit here, but we don't want to pay $40 for a gallon of Orange Juice in February.
The big thing is we are essentially energy independent, which makes the dollar a safe buy when shit gets weird because while speculative investors might jump ship to do their 3-2-1-butt crack spread (It's really called a crack spread, but it is real) we can source all of our own X commodity. Oil, gas, etc.
The UK produces about dick. Like nothing. Their coal is Irish and Scottish, and that's old news. Their energy is brought in from foreign countries. They have a lot of financial institutions, but those only last as long as they are backed by other EU commodities and such which are "easy" buys because they remain desirable. There is a reason why Light Sweet Crude's demonym is the USD.
Part of the reason the GBP has taken a tank is people are jumping ship from investing in the currency and hedging risk in USD-backed securities which have less risk.
You also have to remember there isn't "one" reason. Russia and energy play a big part, but there are a lot of "smaller" issues combined in this. The British tax cuts, the cost of exports vs imports for 15 different countries, Brexit, the UK being fucking gay, this all plays a part.
That's about my general knowledge of it without going into super weird and gay territory, I'll paste and link some stuff below:
https://en.wikipedia.org/wiki/Bullwhip_effect
https://www.cnn.com/2022/09/25/business/british-pound-drops-record-low-intl-hnk/index.html
https://www.cnbc.com/2022/09/26/ste...-as-other-asia-pacific-currencies-weaken.html
I'll post some general information, or, you can ask @Bjerknes He and I have MBAs, I have a BS in finance and a minor in economics. He has a much more narrowed degree, if I recall, but follows markets and such more closely than I do.
That aside, in short there is a widespread issue of inflation, I'm sure you're aware. That essentially stems from a whip effect in economics wherein whatever x factor happens as the front end of supply there is a 10 fold issue at the consumer or manufacturing level. So, remember when oil futures were negative in 2020? That's because no-one was driving. The market essentially said, "we are at an equilibrium for X demand and Y supply." Where exact production and exact demand/consumption are equal. There, now you have an Econs minor. I say Econs because we are going to talk about Brits and they say Maths which makes no sense without an apostrophe; you would think they would know, as they founded the fucking language.
Okay, so, the world slowly wakes up from this 14 to 24 month slumber, depending on your area, and you have the opposite effect. Demand outpaces supply. Demand for almost everything outpaces the ramp-up in supply for almost everything. Hyper-inflation. Inflation is good and necessary because at a base level you need inflation. You want your 1 of X currency worth less tomorrow than it is today because that encourages purchasing. It drives spend, (M1 and M2 if you want to get super into it) but if there was zero inflation, then you would stuff your mattress with money and wait until a dollar or yen, or fucking gold tooth was worth more tomorrow than today. That discourages consumption, which discourages buying, which causes job loss, which causes blah blah.
To more directly answer your question.
The United States is seen as a "full solution" in the sense that we kind of are grossly independent of the world. Sure we manufacture a lot in China, have a lot of call centers with Vikrams named John and shit, but that's to save money. We could do all that shit here, but we don't want to pay $40 for a gallon of Orange Juice in February.
The big thing is we are essentially energy independent, which makes the dollar a safe buy when shit gets weird because while speculative investors might jump ship to do their 3-2-1-butt crack spread (It's really called a crack spread, but it is real) we can source all of our own X commodity. Oil, gas, etc.
The UK produces about dick. Like nothing. Their coal is Irish and Scottish, and that's old news. Their energy is brought in from foreign countries. They have a lot of financial institutions, but those only last as long as they are backed by other EU commodities and such which are "easy" buys because they remain desirable. There is a reason why Light Sweet Crude's demonym is the USD.
Part of the reason the GBP has taken a tank is people are jumping ship from investing in the currency and hedging risk in USD-backed securities which have less risk.
You also have to remember there isn't "one" reason. Russia and energy play a big part, but there are a lot of "smaller" issues combined in this. The British tax cuts, the cost of exports vs imports for 15 different countries, Brexit, the UK being fucking gay, this all plays a part.
That's about my general knowledge of it without going into super weird and gay territory, I'll paste and link some stuff below:
https://en.wikipedia.org/wiki/Bullwhip_effect
https://www.cnn.com/2022/09/25/business/british-pound-drops-record-low-intl-hnk/index.html
https://www.cnbc.com/2022/09/26/ste...-as-other-asia-pacific-currencies-weaken.html
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