GBP - How low will it go?

[Old Greg]

yes, clearly things have changed in 50 years. The standard of living of most in the UK has improved immeasurably, but I contend that if comparisons were made along the lines of what I suggested, then exchange rates become meaningless. Don't forget that the EU's improvements in their standard of living is due in no small measure to the Marshal plan. Note sure if the UK benefited from that.

The miraculous solution HMG employed in the 1970's was to introduce decimalisation of our currency. Overnight, the smallest increase in price was 2.4 times greater than previously. The policy resulted in 29% inflation at its height and brought our salaries and prices in line with those of the EU, so that we could join on fairly even terms.

Guess which country was the biggest recipient of Marshall Plan funds.

And decimalisation did not lead to 29% inflation. Look up the Barber Boom.

[CryingSheep]

I don't have any details of what happened that time, but I guess it was something generalised i.e. high levels of inflation to most developed countries or most European countries what would counter balance the effects, this time would be a massive inflation happening in an isolated country with a negative net exports! Of course it would stabilise eventually, in 10 years or so, but until then most of the population would suffer deeply!

Also in 1970 I believe most European countries would still rely on their own food production, so for most essential goods they would still be fine... That's not the case today and definitely not the case for the UK.

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[JohntheBike]

Guess which country was the biggest recipient of Marshall Plan funds.

And decimalisation did not lead to 29% inflation. Look up the Barber Boom.

well, it certainly looked that way to me.

however, exchange rates in the long term have no real bearing on the issues. In the short term yes. As I've said, when £1 = $4, generally we were much poorer than we are now. Few people had fridges, TV's, phones, central heating, automatic washing machines and cars.

Take the example of 1 Euro = £2. I'm not an economist, but I guess the EU wouldn't allow this to happen because it would mean the Europeans flocking here to buy our goods. This is why De Gaulle vetoed our membership in the early years of the EU, because although our relative living standards were on par with the rest of Europe, wages and prices were considerably more in the EU than in the UK. De Gaulle knew that if we joined with such a discrepancy, then the French would flock in to the UK to buy our goods much cheaper than they could at home. After the 29% inflation period had eased, our wages and prices were roughly the same as the EU and so we were allowed to join. In my opinion, decimalisation was part and parcel of the plan to prepare us for EU membership.

[BR14]

and yet another thread descends into a tedious abyss

[CryingSheep]

well, it certainly looked that way to me.

however, exchange rates in the long term have no real bearing on the issues. In the short term yes. As I've said, when £1 = $4, generally we were much poorer than we are now. Few people had fridges, TV's, phones, central heating, automatic washing machines and cars.

Take the example of 1 Euro = £2. I'm not an economist, but I guess the EU wouldn't allow this to happen because it would mean the Europeans flocking here to buy our goods. This is why De Gaulle vetoed our membership in the early years of the EU, because although our relative living standards were on par with the rest of Europe, wages and prices were considerably more in the EU than in the UK. De Gaulle knew that if we joined with such a discrepancy, then the French would flock in to the UK to buy our goods much cheaper than they could at home. After the 29% inflation period had eased, our wages and prices were roughly the same as the EU and so we were allowed to join. In my opinion, decimalisation was part and parcel of the plan to prepare us for EU membership.

Have a look at this document http://researchbriefings.files.parli...1/CBP-8261.pdf

Probably will help to explain why a fast depreciation of the pound or a massive increase of inflation would be completely different than it was in the past!

[JohntheBike]

Have a look at this document http://researchbriefings.files.parli...1/CBP-8261.pdf

Probably will help to explain why a fast depreciation of the pound or a massive increase of inflation would be completely different than it was in the past!

OK, I guess the World is a different place now.

Interesting graphs, which to me show the decline in our trading position since we joined the EU. We were promised that joining the EU would improve our trading position. It doesn't look that way looking at these graphs

[WTFH]

OK, I guess the World is a different place now.

Interesting graphs, which to me show the decline in our trading position since we joined the EU. We were promised that joining the EU would improve our trading position. It doesn't look that way looking at these graphs

Since joining the EU or trade in services has grown massively, as you claim was promised.

But since British Leyland, British Steel, The Coal Board etc were closed down (is that purely because of the EU in your eyes?) we have less to export.
Also, before we joined the EU, petrol was 55p per gallon. And we had rationing. And there was less obesity. Are these things all the EU's fault, in your rose-tinted eyes?

[CryingSheep]

OK, I guess the World is a different place now.

Interesting graphs, which to me show the decline in our trading position since we joined the EU. We were promised that joining the EU would improve our trading position. It doesn't look that way looking at these graphs

Overall since UK joined the EU, it was the fast growing economy in the European Union (Yes, slightly faster than Germany). Another fact that proves wrong the argument that Germany is the one that profits the most with the EU. No it is not... it's the UK! But apparently ~17 million people believes/thinks UK could have done even better outside the EU!

[Old Greg]

well, it certainly looked that way to me.

You were wrong. Again.

[BlasterBates]

Life in Britain before the EU: