Friday, 13 February 2009

EU Zone Unreason

We hear that there are growing complaints about the weakness of the Pound by Eurozone throats.
companies in Europe have complained that the pound's recent devaluation has left their exporters suffering, as businesses are switching to cheaper British goods.
Considering that the UK is to suffer more than most from the recession, our companies need all the sales they can get. The UK is an expensive place to do business as it is, and British products are hardly a by-word for value. However, the moment it stops being so, up go the howls from European companies who then pull the Corporatist chain linking them to their "representatives" to get them to bend things back to their advantage.

So, when the Pound is strong and the UK expensive, they reap the rewards, when the Pound falls, they still want to reap the rewards.

A falling Pound is one way the market automatically compensates. These Corporatists in Euope want to have their cake and eat it - at our expense. They even  manage to mobilise thier Chancellors to go and bully the British Chancellor. In a way you cannot blame them, as Darling does come across as a bit, how shall we say, malleable. 

Darling must tell these people to sling their hook. It is too late to moan about exchange rates only when it suits. Ideally, currencies should be fairly stable in value and any adjustments should be made to the advantage of the Nation, its people and companies, NOT foreign powers.

That said, I doubt Darling will. I expect he will be given another lecture on how Britain should be in the Eurozone. How they would "help" get us in "for a small price, a mere offering of earth and water...a token, that is all".

How long before he yields, or has he yielded already and all these machinations are just part of the softening up process?


Charlotte Gore said...

In order to get out of recession we need to increase our exports.. and now that's beginning to happen the EU want to stop it?

I can't imagine even Darling would be stupid enough to tolerate that. Is he?

Roger Thornhill said...

Remember, Charlotte, in their eyes we are but a troublesome Province...

Darling, I suspect, is looking forward to some future, cosy, sinecure. The EU is a cosy busom into which he can fall. If he behaves himself.