If Britain, as a result of Gordon’s financial genius, is so well placed to weather the international financial storm, why is the pound at an all time low versus the euro? Why is it falling against a broad basket of currencies? Sterling was even down against the Pakistani Rupee last week…
“It does not mean that the pound here in Britain, in your pocket or purse or in your bank, has been devalued.”
Prime Minister Harold Wilson, 19 November 1967
Harold Wilson came out with that famous statement after the pound was devalued 14% against the dollar. The pound is down some 28% against the euro since the launch of that currency. unemployment is heading towards two million. The seventies are back under Brown. After a run on a bank, we now have a run on the currency. Could we see the return of flared trousers and exchange controls?