At Stanstead and Luton bank & finance companies have continued their decades long outrageous practices of ripping off families departing on holiday. This time the rip off was valuing the pound at less than a Euro for those who were foolhardy enough to exchange currency at these airports. Has a single MP spoken up on behalf of the weary British consumer. Has the government threatened them with stricter regulation to ban their abhorrent profiteering. Of course not. Why should our MPs bother when they can keep their snouts in the numerous troughs spread throughout Europe and the UK without having to bother about where their next fast buck will come from.
Already companies have started to hike their dividends by 40 and 50% as the initial effects of sterling’s slide begin to appear in their books. Was this what the fall in the pound was engineered for, to give yet another opportunity for our indolent, incapable industrial and commercial giants to show that they are unable to drag themselves up by their bootstraps and make a fist of competing with the rest of the world, especially those ne’er do well Germans who never touch a golf club on a Friday afternoon and work long and hard at making their country prosperous.
Just how many opportunities do our playboy industrialist and financiers need. They have been give numerous opportunities over the past 70 years and not once have they seized a single one of them with a view to making Britain great again.
In 1945 there were $4.03 dollars to the pound. Since then the decline of the pound has been continuous and long term. Time and again Prime Minister after Prime Minister has lied in their teeth, pretending that a fall in sterling is good for the UK economy although none has gone as far as Harold McMillan in lying to the country that the pound in your pocket was still worth a full pound.
As he knew full well that was absolute utter nonsense because a fall in sterling means a rise in inflation, which in turn means a rise in wages on top of a rise in the price of imported goods, which in turn means that the pound needs to be devalued again to make our goods competitive and stop the economy overheating. And so the circle keeps on going round and round and yet another devaluation becomes necessary to counter the problems created by the previous one.
A weak currency is the natural by product of a weak economy. Germany always had a strong currency because it produced goods on time, of a quality which most other countries could only dream of and at a price which was very competitive. Germany never even had to think of a devaluation because they paid their way and worked hard and, let it not be forgotten by those Germans now going for a hard Brexit, they had their debts paid off for them. Pity that so many present day Germans act as if that was a mistake on the part of the Allies.
In the end however we can not escape the fact that the collapsing pound is a disaster of our own making which our misguided politicians are encouraging.