Quick Question

[Mega]

When Britian was forced out of the ERM back in the 90's the £ was effectivly devalued.........by how much?

Cheers
Mike

[*T*]

Re: Quick Question

When Britian was forced out of the ERM back in the 90's the £ was effectivly devalued.........by how much?

Cheers
Mike

You could look at the exchange rate.

[Mega]

Re: Quick Question

Hi T
Yep, about 30% over a year or so...............frankly i think this IS a way out of our debt troubles.

We devalue by say 25%........then 12% following year, then another 12% after that. Thus 50% of the problem is gone, tight our belt on public spending, a few Tax rises & Job done.
Mike

[Starving Steve]

Re: Quick Question

Hi T
Yep, about 30% over a year or so...............frankly i think this IS a way out of our debt troubles.

We devalue by say 25%........then 12% following year, then another 12% after that. Thus 50% of the problem is gone, tight our belt on public spending, a few Tax rises & Job done.
Mike

De-valuation and inflation are the obvious answers to what the Fed and the Bank of England are up to. But way in the back of my mind, I am wondering if the Fed and the Bank of England are going to pull-off a Bank of Japan scenario of strong currency, low interest rates, and a slow grinding de-flation?

Of the two possibilites, I would choose the slow grinding de-flation as the best way out of this economic mess. The Bank of Japan's policy would be the best plan to follow. So long as people do not lose their savings in bank accounts or AAA government bonds, what is there to worry about? We all can live with, perhaps even enjoy, a slow grinding de-flation.

[Mega]

Re: Quick Question

Its possable Steve
But the one thing "They" need is for House prices to rise. A 50% fall in prices IS happening in some places already. Without doult the £ will fall in the months ahead....gilts/Bonds will fail to sell.

No, think a "Control inflation" is what "They" want.........never mind, Gold will rise & the Price of Whores will fall........Happyness.
Mike

[*T*]

Re: Quick Question

Its possable Steve
But the one thing "They" need is for House prices to rise. A 50% fall in prices IS happening in some places already. Without doult the £ will fall in the months ahead....gilts/Bonds will fail to sell.

No, think a "Control inflation" is what "They" want.........never mind, Gold will rise & the Price of Whores will fall........Happyness.
Mike

Agreed. One man's savings is another man's debt.

Looking at the gold price, it jumped from £300 to £600 in short order, pretty much a 50% devaluation. So partly done...

[Mega]

Re: Quick Question

I suspect a LOT futher to go on Gold as yet "T".
Notice Britian has now, so far this year a fall of 5.6% GDP wise?
Mike

[*T*]

Re: Quick Question

I suspect a LOT futher to go on Gold as yet "T".
Notice Britian has now, so far this year a fall of 5.6% GDP wise?
Mike

Well, I haven't sold any, apart from some loose change for short term spending needs.

[cmalbatros]

Re: Quick Question

14.3% is what i could find.