Archive for April 9th, 2008

We’ve been devalued

But not only us, but the US as well.

None of the “pundits” are saying a word about it are they? Perhaps they are ignorant? Or have their ordersss?

But those in the computer business where prices for software are given in Dollars, Sterling and Euros won’t have to go back too many months when a hundred pound product would be priced as:

£100 ($200 or 200Euros). These weren’t exact translations admittedly, but were rounded to make it easier for the Americans.

Now, today, I checked the currencies with XE.Com and the following is the exact exchange rate at 3:20pm. £1.00 = 1.97456 USD = 1.25293 EUR

Or to simplify: £1.00 = $1.97 = E1.25

This can signify two things.

1. Either the American and British money has remained the same and the Euro has strengthened enormously in value, which I doubt or there would be a lot of news about it; or…

2. The Euro has remained pretty much the same and the Pound and dollar have gone into free-fall owing to the property and banking crises, and the fact that the Federal Reserve, and our Bank of England are printing money by the billions.

Of course, there could be a third reason but I hate to dwell on that as it is too depressing. This is that the Pound, Dollar and Euro are all falling, but the Euro isn’t falling as fast – at the present – because the Continental economic cycle is not tied to the American cycle as ours is. If this is indeed the case, I am too fearful to check our three currencies against the Asian economies. Do remember a lot of those bought up our gold when we sold it at knock-down rates.

So apart from the pound in your pocket, and in your savings account, when you buy all those modern luxuries made in Asian Economies, expect the cost to rise in the very near future.

I am tempted to remove all my savings from the bank and spend the lot on a bottle of Scotch!



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