Thursday, Dec 18, 2008
Savings shafted!!!!
Timesonline: Sterling hits new low of 95p against the euro
"Of course it's not good news for our UK friends but why don't you join the euro? If the markets were certain the £ merged into the euro soon with the fixing of a rate of 85p /€1, the £ would stop falling and the ECB could help the BoE defend that rate BUT that means dropping the pound .ugh
pascal-pierre, Dinan, Brittany, France"
..taken from comments. What is the possibility of HMG actually shafting every prudent person in the UK to the extent this person is suggesting (85p/1euro exchange rate at inclusion into the eurozone)?? If this happens I will have lost 60% of my savings since summer 2007 and 15% from parity, barely bares thinking about, but I must. This is driving me nuts, you try to be sensible and plan for the future of your family and those people "that matter' tear it away.
19 Comments
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1. Gordon Brown said...
I am in control of this matter. There is no need to worry if we join the euro it will only after I have considerd the fullimplications for this country. This is something that no one need worry about I was chancellor of this country for a very long time so I know what is best for this country
2. paul said...
Calm down our kid.
Joining the Euro is not as easy as that - the terms are set by the creditor, not the debtor. In other words, we would have to meet the ECB's criteria, not the other way round. Last time I looked we need two year's worth of near parity or pegged exhange.
Which we 'aint got. You can't shaft on such a massive scale without riot either - unless its through inflation.
3. handle_it said...
Truth is the £ has been overvalued for years. I'm a saver but I can't argue that my income has been increased because of hpi. So the situation is complex. My advice is to become less obsessed with money. Think about ways in which you can connect to your higher self and choose to move away from blame and fear. As I say I'm a saver but have compassion for those who were only doing what they have been programmed to do. Many familys will soon have no home or income at all. Most of us here knew what was coming so have made good use of the expansion of money via debt. We are now going to see those savings reduced to a more realistic value - just like all other assets.
4. luckyjim said...
We should have joined the euro five years ago. Labour didn't have the balls to take on the Nationalists.
I think £0.85 is to the euro is a little too low but the UK cannot turn down a decent offer. By letting us in at above the market rate the eurozone would be absorbing some of our mess.
5. paul said...
Let me spell this out - We Are Not Joining The Euro.
We just don't qualify.
6. mark wadsworth said...
I set up a Fun Online Poll yesterday as to which point of view on Euro-membership is more irritating.
7. luckyjim said...
Paul,
If the Eurozone countries still want the UK to join we will join. It is just a question of when.
8. bellwether said...
Is anyone paying the remotest attention to what is going on in Europe or indeed why the currency is high right now?
There was a level of presience about house prices that seems to have departed some on this site.
Having switched to the Euro at about 1.15 on basis that parity seemed a done deal recent movements are good but I don't think for a second its going to last. This is mania with the Euro before it busts wide open. Mind you the more people thinking like you guys the better I guess.
9. Cheekie Charlie said...
Why does everybody keep saying the pound has been overvalued! Maybe you like paying £8 a pint! Dont worry the strength of the Euro is bad bad news for Euroland they're being priced out of the market big time. Those weekend stag party's in Dublin are a long distant memory.
10. crunchy said...
4. paul said...
Let me spell this out - We Are Not Joining The Euro.
We just don't qualify.
crunchy Agree.
Euroland has enough dodgy members already.
The last thing they need right now is us. YET! we have too much debt.
11. fjcruiser said...
What is the benefit of joining the Euro ?
£ used to be strong because currency is a reflection of the economy and the UK was doing well. £ is doing badly because the UK economy is going down the gutter. It could all change if only we had the right people in charge.Not for a while me think.
12. sold 2 rent 1 said...
Buy gold whilst it is still dirt cheap.
13. mken said...
@9, fjcruiser said "reflection of the economy and the UK was doing well"
Doing well? - the UK was inflating a huge debt-bubble on Chinese, German and other foreign money.
Take away the credit, and what's left?
As for entry to the Euro, the UK could always falsify it's accounts to gain entry - in the style of Greece and Italy.
14. bystander said...
quick question - anyone know how much in tonnes/ ounces GB sold of the UK's gold reserves and then bought euros with the proceeds for 1.70 euro to the pound? Also anyone thin k it might be possible the silence of the government and mass media and the hawkish comments from the ECB could be to help drive donw the pound whereby GB/ Darling can buy sterling/ lots of sterling with the euro gained from the gold sale and suddenly have many billions to help shore up the economy. Sterling will then appraciate and the UK could enter eurozone at a reasonable level, say between 1.20-1.35 euro/pound? Any thoughts or is this just too ridiculous and is sterling completely doomed?
15. sceneclub68 said...
The euro is strong all round at the moment. It can't, and won't, last. I would far rather have a free floating currency like sterling, whose current weakness will help the economy (exports, tourism, etc.) than a monolith like the euro, which will come under increasing pressure in the coming years: the unrest in Greece at present is closely linked with its euro membership. You can't have monetary union without political union. The euro will not survive in its current form.
16. inbreda said...
bystander - good call. Well thought out plan. The chances of a fat bumbling idiot like Clown thinking of it? zero.
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