Will the pound be dissolved and will we enter the Euro ?

[eliquant]

I can't help thinking that if the £ sinks too low, the government or the IMF may step in to peg it to a fixed exchange rate and stop it floating.

Once this happens I'm pretty much sure you'll be seeing Gordon Brown soon on the T.V. telling us how this will be 'good' for Britain to join the Euro.

In the 'good' sense that we will still have a monatery system and he will still be in power so 'good' for him he will mean.

When we switch to the Euro we will get ripped off again in rip off Britain with unfair price conversions to Euro (which happened when Spain converted to the Euro from the Peseta). So in rip off Britain we will get ripped off again.

and btw wages will remain frozen and contract rates may drop again.

I just cannot help thinking that this is one plausible scenario.

Discuss.

[VectraMan]

When we switch to the Euro we will get ripped off again in rip off Britain with unfair price conversions to Euro (which happened when Spain converted to the Euro from the Peseta). So in rip off Britain we will get ripped off again.

Not if we join when £1 = 1 Euro.

[AtW]

I can't help thinking that if the £ sinks too low, the government or the IMF may step in to peg it to a fixed exchange rate and stop it floating.

Pegging is a very bad strategy that requires a lot of foreign currency to sell in order to maintain your own. UK has got negative balance of payments - I don't even know if BoE has got a large reserve of foreign currency, not even gold anymore.

UK should have joined Euro long time ago on its own good conditions, now UK is in such a bad shape that Eurozone would not want it to join the system.

[Paddy]

Even the Zimbabwe Dollar is gaining on the pound. Such a steep slide, I recon that it will bottom out around 75p = 1 Euro. This would be in proportion to what happened to the US Dollar.

[PM-Junkie]

Even the Zimbabwe Dollar is gaining on the pound. Such a steep slide, I recon that it will bottom out around 75p = 1 Euro. This would be in proportion to what happened to the US Dollar.

The fall of the dollar ain't over yet. The pause in its demise has been caused partly by the tax rebates. Once that effect wears off (though there are other factors too), watch the dollar fall off a cliff again.....

[AtW]

watch the dollar fall off a cliff again.....

And what will raise greatly in value, euro, pound, or yuan? The US dollar gained because all things equal US will emerge quicker from downturn and stronger - they got into it earlier and will get out earlier, EU will probably lag by a year and UK might take 2-3 years.

Even if you look at US housing market the kind of big houses they have there for small price is greatly preferable - they just need to give permanent visa to anyone who buy house over $250k so long as they are not security risk and their market is saved.

[Doggy Styles]

I think that we now have the most debt-ridden and malfunctioning economy in Europe by far, so what makes you think the Germans, the French, and any of the rest want us in the euro?

Once we get rid of these Labour clowns, our destiny will be in our own hands to fix the economy, just as we did 30 years ago.

[AtW]

our destiny will be in our own hands to fix the economy, just as we did 30 years ago.

DOOMED!

[Doggy Styles]

DOOMED!

We did a jolly good job, all things considered.

From grovelling to the IMF as the "sick man of Europe" in the late seventies (you won't remember our 25% inflation), to the second biggest (and solvent) economy by the late eighties.

[BrilloPad]

Has nobody learn anything from White Wednesday?

Or is this a way of re-capitalizing the banks?

Interestingly 16th September seems to be an important day for banks : first 1992 then 2008......