Thursday 27 October 2011

DEVALUATION by any other name.


On the television at the moment, we hear that the EURO is in crisis and that the government should consider pulling out of Europe, I have never heard such codswallop. In 2002, soon after the EURO was invented, I had occasion to change a considerable amount of EUROs into POUNDS. I received 62 pence sterling for each EURO exchanged. That was the going rate when the EURO was born.

If I wanted to repeat the same exercise today, I would get approximately 90 pence sterling for every EURO exchanged. This means that in less than 10 years the value of the POUND has dropped by 25 per cent against the EURO. So when you hear the EURO is in crisis spare a thought for the poor old POUND.

When you hear QUANTATIVE EASING

                     read DEVALUATION !!!

1 comment:

  1. Yes, but if you kept your Euro's and cashed them in today think of the return.

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