The Pound Falls Again
It seems like Britain will never be out of the recession at this rate. Of course, what would I expect when the Government’s grand plan for getting out of the recession was to borrow more money? There was a time when going on holiday was economically great, because you saw your money go so much further when you changed currencies. The best thing was that these destinations were also already cheaper than England to begin with before one factored in the great exchange rates.
Now, with the Euro maintaining a steady balancing act and the Dollar performing a similar routine, we have to trust in the Pound returning to its former glory. At the moment, this is not happening. The pound dropped alarmingly again last week and now we are seeing conversion rates of $1.5USD to the pound. This is a massive drop compared to two years ago when we saw conversion rates of over $2USD to the pound.
It seems that America, Canada and Continental Europe have managed to scramble their way out of the recession and are seeing some minor improvements to their economies. They are gaining some financial stability and seeing some favourable numbers when it comes to the relative strength of their currency.
As mentioned earlier, that is not the case for the UK. Whilst our currency is still stronger than many and we still have a decent exchange rate, the fact that the pound is falling is cause for much concern. Who is to say that it wont stop falling for a while? I am sure the economists of this country are setting themselves up for the worst case scenario. We were told not long ago that Britain had pulled itself, much like the rest of the world, out of the recession (with the help of the baby boomer generation and equity release schemes). However, we seem to have now plunged ourselves right back into it.
This is a second wake up call in regards to how we maintain this country’s finances and another argument against the leadership of the current Government.
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