OCMan

I see today that the GBP/Euro rate is 1.258 - 79.5 p I have been a houseowner in Spain (Alicante) now since 1999 and have seen the GB Pound steadily decline in value against the Euro.

Anyone out there ever see it gaining in value again ?

bigglesworth

No is the short answer.

And unfortunately it could get substantially worse fast. This moronic Government is proposing to remedy the problems caused by indulging in a debt fuelled binge for 10 years by.......


borrowing more

(and slashing interest rates so that the cost to the Exchequer will be reduced by lower interest rates. Just imagine what that will do to the pound!).

If anyone could enlighten me as to how continuing the self same idiocies that got us into the mess is any kind of solution, they deserve the Nobel prize - but whether that is for Economics or Fiction I leave to you.

Fred James

It's not a new idea - it is classic Keynesian economic theory which has been used in similar situations before. It was "invented" in 1936.

http://en.wikipedia.org/wiki/Keynesian_economics

Whether it is going to work this time is anyone's guess!

debandsie

unfortunately i think that eventually the pound will have the same value as the euro, and when that happens no doubt the uk will adopt the euro.

bigglesworth

Keynes advocated spending on public works. I am not sure he would have advocated employing thousands of neighbourhood outreach officers as a useful way of creating employment

rationalfreeman

although the gbp/eur rate is low at the moment speculation suggests the rate will hit the 1.3 mark in the near future. it was trading at the 1.23 at the beginning of the week and has now strengthened to almost 1.26 today. not a bad gain in 48 hours.

Sarleon

Like the post above, my guess is that eventually we will join the Euro zone becuause of the slow slide in value of the pound...

pete_l

But this is what the likes of Ocean Finance have been telling us all to do
for years Does this mean that the insanity of managing your debts by
borrowing more money is gradually getting through? Hopefully the lesson won't
be forgotten

poshnbucks

Check it out below. Note the big dips when Brown or The Gov Bank of England open their mouths.


http://newsvote.bbc.co.uk/2/shared/f.../one_month.stm

lic

IMHO the U.K. will not join the Eurozone. There was a time when I thought it would be good for us, but only when the £-E rate was good.
If we were to join on a £1 to 1E rate that would mean disaster for the UK. (for that you can read Politicians and Bankers)
How much money do you think the money people would lose by not having exchange rates. The banks have lost more than enough money already!
Every country that has joined the eurozone has had an initial period high inflation, which good old Gordy is against.

Bri and Katee

Closing price as shown on sky news is 1.2721, so yes it is rising again, thank God, we have to pay our mortgage in euros on friday

bigglesworth

Good old Gordy Loves inflation. All debtors do!! Then they can sucker us into losing money financing their debts

bobd22

Who knows last week up 1.29 yesterday 1.23 today back to 1.27 I wonder if Gordo and the Bank of England to be hosnest are not making these rash (or not so rash) statements in order to force the pound down in particular agains the dollar. not great with a euro mortgage especially as when my direct debit for transfer goes to be exchanged to euros it allways seems to take a nosedive.
I think you would be a wealthy person if you could predict what it will be in 12 months
Bob

steviedeluxe

As the pound goes down you'll see more British companies bought out by foreign companies - we've seen Santander flex its financial muscle, and the French power industry is very active in the UK aquisition market. Today BMI announced it was being bought out by Lufthansa. Is this a good or a bad thing?

rachelk

Oh the irony, when we clung on to sterling to protect our sovereignty!