How long before the pound is worthless?

rizla01

Could it happen?

It has in other countries and they say that we are in for a VERY rough time, so what is to stop the money in your bank becoming valueless?

dunstonh

What other leading world economies has the value become worthless? (apart from say Germany after WWII)

they say that we are in for a VERY rough time

Yes but that doesnt mean catastrophic. It wont be as bad as say the 70s and points in the 80s for example.

Malski

Maybe until it gets to the same level as the Euro, then we change over to the Euro. Just with how everything else is panning out I wouldn't be surprised.

gunnaknow

How would one go about investing in euros or dollars?

dunstonh

gunnaknow wrote: »

How would one go about investing in euros or dollars?

Do you mean investing in investments valued in those currencies or speculating on exchange rates?

Pandora123_2

Malski wrote: »

Maybe until it gets to the same level as the Euro, then we change over to the Euro. Just with how everything else is panning out I wouldn't be surprised.

When the euro threatens to surpass the pound, then the govt will push the euro through. That's the only way that people will agree to it. No going back after that.

Jonbvn

Remember Eurozone & Fed have recently cut rates also. Given yesterdays massive cut, sterling has not really done much so far.

arcadia00

gunnaknow wrote: »

How would one go about investing in euros or dollars?

I'd imagine the quickest (tax free) way is just to short the pound against the dollar and euro with a spread bookmaker.

climbgirl

I think we've got a long way to go before the currency is valueless! The exchange rates have barely moved after yesterday's rate cut, I've been watching them like a hawk as I'll be buying some USD for a trip and sending money elsewhere in the world.

The rate cuts weren't unexpected, just the size of them. Most pundits welcomed the move, it hasn't hit the exchange rates much at all.

Yes, things are going to get bad for a lot of people. But we need to try and avoid the hysteria a bit, it's not going to lead to the end of the world! We've been through recessions before and no doubt we will again. I think the media need to be more responsible about reporting this, their headlines are leading to panic and hysteria and it's not necessary.

mr_jetlag

The rate cuts were already partially "priced in" to the exchange rates; most people already expected a fall between 50 and 100 basis points.

Also, this may perversely improve the £ vs the Euro, because we now have a lower base rate than the Eurozone (albeit temporarily... I would stake good money on a Eurozone cut down to 2.5% before Christmas).

In the end the flight to safety which saw the dollar move up is over. I predict the £ will drop slightly below $1.5 until after Christmas and if businesses can recover after that, will move back up to $1.6ish. (unplugs crystal ball, goes for a tea ) But you can forget the "good old days" of 2:1 exchange rates and popping over to New York for a shopping trip.

jyonda

Wouldn't a weak pound make UK Plc exports more attractive thus stimulating the economy? Even if the pound is 1:1 with the Euro it wouldn't make sense to switch as we'd then be dependant on the ECB who wouldn't be making rate decisions in our economies best interest.