So today we saw the pound jump to a 19 Month high with £1 buying €1.22. This is apparently because the world knows we are going to not only service, but pay down our debt, making the British economy more stable. So we have Euro’s flooding into the economy today, everyone wants a bit of pound because if you think your own currency will weaken then to protect your wealth you put your money in something stronger.
Also there is evidence that in the Eurozone it’s going to be harder to pay down debt as people are more used to social programmes that look after the less fortunate, or less lucky, or call it whatever.
But the double edge is this. If our currency becomes too valuable, our exports become too expensive. If we cannot sell what little we still make then people lose their jobs, we then have difficulty even buying our own manufactured goods. The conservatives said they think we should start making things again, and rightly so, but its a very fine balance. We need a strong Euro, we need the Europeans to pay off their debts without their populace rioting and blowing stuff up. Will it happen??? Got to hope so.