Pound Nears Euro Parity

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One pound was worth two euros when the currency launched at the beginning of the millennium. Now one pound is worth about one euro.

Double euros for brits did not last long. The beginning of the Iraq war, which had France and Germany stay out, brought it down to €1.5 per pound where it stayed until the banking collapse.

As a financial centre, London suffered badly, bringing the pound to about one euro in 2009. That didn’t last long, however, as the euro crisis unfolded.

Even after the euro crises was somewhat addressed, pound saw a small fall, but went on to rise in 2014.

The astute British civil service was about to start courting the rising digital economy. London was to take the mantle from New York as the financial centre of the world. Fintech and that grand vision of innovation brought optimism. The City was booming and with it the world as Brits championed the dawn of a new era.

Then the Brexit calamity puts a halt to much of it. The pound dives and doesn’t recover with that closest referendum result placing into question the role of Britain and that of the City as a financial centre.

Pound v Euro price in monthly candles, May 2019.

The curious coalition of Conservatives and Libdems in 2010-15 led to a very interesting alliance that can be called conservatism with a heart, or classic liberalism.

They removed the poorest of society from tax all together. They set up investment banks for start-up finance. They laid out infrastructure projects. They went after AI, Blockchain, cryptos, and all the new shiny things. They courted China as well as America and Europe. Britain was open for business and Britain was leading the waves.

Yet a crucial mistake was to lead to a revolt at the ballot boxes. Following a brief respite from war and peace matters after Obama took over, Arab nationalists came back with a vengeance.

The Arab Spring failed to turn into renaissance. The Libyan dictator turned the guns on its people. As did the one in Syria. In Libya bombs flew. In Syria, Ed Miliband, the then leader of labour and the opposition, arguably betrayed parliament and the country by promising to support Cameron’s resolution for a quick bombing. At the very last minute, he whipped his party to vote against.

That shocking result reverberated and continues to do so today. Obama backtracked. America could not go alone without even Britain.

The Arab war came to our streets while Syria was razed. Biology doing its job in its quest for survival led to more acceptable narrations, even thought the mind still rejected them.

The war had to end by any means within reason or reason was facing the trenches. Brexit was such means, as was Trump.

The American economy is booming now. The dollar is strong. As was expected, the more edgy parts of Trump would be smoothed out. Brexit on the other hand is fundamentally different because you can’t see how that can be smoothed out.

It can be argued and it probably will be argued that Brexit is a permanent result of very temporary events. Trump and America can change their mind on any issue at any point and change direction. How does Britain where Brexit is concerned?

Not once during the referendum were war and peace questions addressed despite the entire point of the European Union being war and peace.

It is because of the horrors of nationalism and tribalism, imaginary borders that divided families and had brothers fight over nothing, it is because of the hate and the dehumanization and the scapegoating that these forces created, and the exploitation of them by the upper class to pit the rest against each other so they don’t ask any questions of them, it is because of the atrocities of the last century that this great and so far very successful project which has lifted hundred of millions found its establishment.

Yet there was no word of it. Not one word of the euro. But if pound is now at parity, why should Britain not join the single currency?

Doing so can solve all of these problems. There would then be a banking union and so on. London would be at the centre of Europe. And it would be at the centre of the world.

No one even utters the word euro in Britain, but the far bigger German economy runs on it and they’re doing fine. As does the French one. What use the pound if it falls below euro parity?

Britain was headed to join the euro through the exchange mechanism, but George Soros “broke the Bank of England.”

One man decided Brexit. Not the referendum. The people voted how they voted because they had not joined the euro. Had Soros not attacked the pound, and thus had UK been part of the Euro, it is inconceivable to see why there would have been a referendum.

Instead the single currency means there has to be a banking union and that has all sorts of policies and considerations which don’t necessarily apply to Britain, so creating a two speeds Europe.

There would be only one speed, however, if Britain joined the euro. Why shouldn’t it? The Bank of England is as unaccountable as ECB. Both do whatever they like without any public oversight or accountability. If it works for Germans and the French, why would it not for the English?

The pound is close to euro parity even before it has left. What if it drops to half a euro afterwords as Amsterdam takes the mantle of being Europe’s financial centre?

Britain can then trade with India all it likes or the two people that live in Australia, but they’re saying this Brexit thing will be a decades long matter. Decades.

When they said this about the Arab wars, everyone kind of dismissed it, but since they turned out to be right, the British people should listen and very carefully.

This country has harbored dissenters or undesirables for centuries. Its welcoming of jews after they were kicked out from Amsterdam, for example, played a great part in the rise of the City.

It is the intellect, fundamentally, it is ideas that drive the world, not biology or birth rights. It is the high principles of tolerance, openness, and the sheltering of undesirables, that made the west great and will hopefully continue to do so.

Complacency can seem an easy choice when things are sort of alright, but we have to wonder what we will think in a decade or so when we look back.

Will Britain still roar, or will it be relegated to an irrelevance as EU, America, China, perhaps India, and maybe even Russia, as well as perhaps some sort of Arabian Union, drives the world?

Or will it still work out for the Labrador among lions? Free to decide among whatever others dictate without having much say over their dictations.

It is for the Brits now, after nearly three years of consideration, to make their decision, to set in effect a series of events as they imagine them to be in a decade or two.

With so much discussion on the matter, it is probable even 18 year olds are now well placed to roll the dice and decide.

That’s during the European elections on the 23rd of May. Libdems for Europe. Upper class rich banker Farage for leaving to god know where.

Editorial Copyrights Trustnodes.com

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Paul

Uuh I think you’d better check your facts. £1 was worth €1.40 at launch of the Euro. It’s not near parity now either. Its €1.16. Its OK to write an article about any subject, but not OK to make such blatant errors and be trusted with the accuracy of the other information. I stopped reading once I realised the errors. Trust is on the title of your publication even. I’ve probably read several articles on trustnodes in the past, I’ve never noticed it before, but now I’ll remember it for not being accurate and question everything. That’s a shame.

Nik

How is 1.1 not near parity? That’s as close as it gets.

Paul

Loss of trust

Nik

In facts?