The US Dollar vs. the Euro and Pound

[Hostels]

Today's exchange rates from xe.com:

1 euro = $1.40 USD
1 pound = $1.44 USD
1 pound = 1.04 euros

Almost the same...

Do you think the UK will ever switch to the euro? Someone from Denmark told me that Denmark will probably switch to the euro.

BBC has a whole section on it here.

[santa klaus]

Originally Posted by Hostels

Do you think the UK will ever switch to the euro?

They will, when they are as broke as Iceland. We won´t have to wait too long for this, Brown is just printing more money than Mugabe.

[aboriginalhostel]

Originally Posted by santa klaus

Brown is just printing more money than Mugabe.

One zillion pounds... Doesn't sound bad. Looking forward to spend my Euros in the UK!
It seems backpacking around the UK for 100EUR won't be impossible anymore...

To be a bit more serious and respect those forum members who are living in the UK, the major crisis will be over within a year or two.
There will be some panic on 16th of January but as soon as the US economy stabilizes, and a more calculable policy follows with the new government (instead of the recent cowboy policy), investors won't behave such an anthill and the markets will be reassured again. Meanwhile put your savings in Euros. Another reason for the Euro, it was the least affected currency so far. USD, GBP, JPY, AUD have been all playing a roller coaster.

[Scotch Argus]

I doubt anyone could say whether or not the UK would ever switch to the Euro. Anything is possible in the longer term. In the short term I don't think it's likely as it's a patriotic issue more than anything for most. Even if it were possible to make a 100% guaranteed case that it would be economically beneficial I think most would votte against it out of blind patriotism. A bit like asking if the Canadians would ever vote to ditch the Loonie in favour of the greenback. Even if it did make sense it's hard to see them doing it.

Everyone always talks about the fundamentals of why currencies fall/ rise, but these things tend to go on emotion and speculation. They talk of a collapse of the pound, but I would have thought US$1.50 is a pretty reasonable figure, and parity with the Euro may come to be seen as normal soon. This has the effect of making the UK comparitively cheaper to visit and export from. In the long run this may be a way of getting the UK economy on a more sound footing. I doubt it'll suffer as much as the currencies of some of the recent accession countries purely due to its size. Comparisons with Iceland seeem a bit premature yet.

[santa klaus]

The comparison with Iceland is of course a wild exaggeration, but I think there´s also a valid point in it: like in Iceland, much of the UK´s recent economic growth originated from the financial sector - which is hit very hard now.

[uktrail]

Originally Posted by Scotch Argus

Even if it were possible to make a 100% guaranteed case that it would be economically beneficial I think most would votte against it out of blind patriotism.

Do you think we will actually get a chance to VOTE on it?

Our government doesn't consult the people on little things like whether we change currencies, or whether we go to war.

[aboriginalhostel]

Originally Posted by uktrail

Do you think we will actually get a chance to VOTE on it?

I think it depends on your constitution but most likely yes.
Sweden turned down their Euro referendum in 2003 and I think both Slovenia and Slovakia had to vote for the Euro as well, regardless they have fulfilled the conditions previously.

Despite the UK government, EU is based on rather liberal democratic values, sometimes still too bureaucratic though. There was s plan about a common, EU constitution, known as Treaty of Lisbon, and regardless 25 out of 27 members agreed to it, they still had to have all members to agree with it.
This was failed by the Irish referendum, where some CIA-related businessmen's party has successfully protested against the constitution, which worked out well, failing the whole process...

[gordo]

ven if it were possible to make a 100% guaranteed case that it would be economically beneficial I think most would votte against it out of blind patriotism.

true but the french did away with the franc... and theyre not short on patriotism.

Despite the UK government, EU is based on rather liberal democratic values, sometimes still too bureaucratic though. There was s plan about a common, EU constitution, known as Treaty of Lisbon, and regardless 25 out of 27 members agreed to it, they still had to have all members to agree with it.
This was failed by the Irish referendum, where some CIA-related businessmen's party has successfully protested against the constitution, which worked out well, failing the whole process...

so what was the ETC? asnt it just the expansion of the treaty of rome? im sure the french and dutch killed it.
or perhaps we're talking different treaties.

[aboriginalhostel]

Originally Posted by gordo

so what was the ETC? asnt it just the expansion of the treaty of rome? im sure the french and dutch killed it.
or perhaps we're talking different treaties.

Hehehe... It seems there are satellites even in the outback... such well informed, aye?

Yes, TCE was the first trial run for the constitution which failed in 2004. The Lisbon treaty is aka Reform treaty is the modified version of TCE. So I guess there would be another reform treaty of the Reform Treaty, expected around 2012? One for sure, to be continued...

[santa klaus]

The EU is a great thing, it just has one big design fault: each member state has to approve every major law individually. That is like a bus without a destination sign on the windscreen but with a brake pedal for every passenger: it´ll never go anywhere.

The politicians always maneuvered themselves around the crucial question: do we want the United States of Europe or only a common market? There should be a referendum about exactly that question in every single member country - ASAP. Those countries voting for USE will get exactly that - a single currency, a meaningful European parliament which elects its own government and a constitution. All the rest will get a tariff union with the USE, but no further subsidies and absolutely no influence over the USE´s internal affairs. If they want to join later, they´re welcome. If they think printing their silly queen´s face on their own banknotes is their patriotic duty they aren´t politically mature. Innit?