Within the 50 years the value of British Pound sterling has dropped by 94%

British pound sterling no longer has its value as it was around 50 years ago. Now its value is actually lower by 94%. This cash value decline can be seen and it is reflected in consumer goods and food prices. As it was written in the British newspaper The Guardian that during the last half century the prices of consumer goods and food rose around of 18 times. This is a huge difference. For example a pint of beer sometime in 1960’s cost only 33 Pence (47 Cents) and now the price have grown up to nearly 3 Pounds (4,3 Euros). Milk prices in Greta Britain increased from 3 to 44 Pence and these numbers continue to grow even now when actually people experiencing economical crisis and they don’t have so much money as they use to. It was analyzed by BM Savings that probably within the next 50 years the value of British Pound Sterling will decrease by another 63%, which would actually mean that the prices for consumer goods and food will increase hugely. It is presumed that a loaf of bread will cost 2 Pounds more on top of 3.20 Pounds that it costs already and the price of a pint of beer will climb up to nearly 8 Pounds.

The specialists have noted that the money actually began to depreciate very fast since the eight century of the last decade when the annual inflation was around 13%. Even though the annual inflation has decreased by a lot since year 2000 and it is only at 3%, still, the value of money continues to depreciate significantly and there is no true reason for that now. It is estimated that probably after 10 years 130 Pounds is worth only a 100 Pounds.

What is going to happen in a future only time will tell, but the fact is that the prices will continue growing. So what people can do in order to survive, especially now, during the crisis and when the pockets are so tight.

Main source: http://www.ekonomika.lt

http://www.telegraph.co.uk/

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4 thoughts on “Within the 50 years the value of British Pound sterling has dropped by 94%

  1. I think for a lot of currencies had the same problem, that is a high inflation and decline of value. I know that the dollar faced the same and most products increased massively in price. In China there is an inflation of 4-5% a year and the Yuan also decreases in value. This is especially notable for the lower classes because they will have less money to spent. However, as long as people get compensated for their ‘losses’ the problem is not that big. Do you know if people in the UK get compensated fully during high inflation?

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  2. The fall of the British Pound sterling is an excellent example of what happens when inflation rate is higher than the increase in real value of money. Under the current free market system, the system itself is engineered to inflate value of products until it crashes, bringing on a healthy, small recessions which sets the real value of money at equal to the value asked for a certain good. However, movement towards a global economy has disrupted this system, and the advocates for a free market economy seem to be oblivious to this problem.

    It is the basic law of supply and demand. The fact remains that we in Western society live at higher standard of living than the rest of the world, and as these western countries continue to globalize and further remove import and exports controls, the standard of living in these countries will decrease at the same rate that the standard of living in less developed countries increases, as long as this economic scheme is in place.

    It is time to either re-implement trade barriers as they were before globalization became trend, or do away with these barriers completely across the globe and fund technological increases in those with lower standard of livings to raise this to a level that the western society deems acceptable, as it will then become global. We cannot afford to continue to sit on the fence with this issue; either we go completely global, or abandon the idea of free market across country boarders completely.

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  3. Just a shallow observation.

    In a variable valuation history which has left the pound today worth only about 1/200th of its value in 1750, each and every contiguous Labour term of office (Brown & s, Callaghan, “pound in your pocket” Wilson, MacDonald, Clem) has left the value of the pound to some degree badly scathed.
    You would think that just once in these times, Labour might have managed to break even (1924 would be the closest, but scarcely time to get the damage started).

    Source: extrapolation to date from
    http://www.parliament.uk/commons/lib/research/rp2003/rp03-082.pdf (Nov 2003)
    ” Inflation: the value of the pound 1750-2002 ”

    I really can’t see how this helps the country or the working man (w- etc.) in particular.

    It’s a poor record of stewardship by Labour, an indictment on the poor judgement of the electorate, and by extension a vote of no confidence in our educational system.

    Reply
  4. That fall in the value of our currency on the foreign exchanges has now been exceeded as the global financial crisis wreaks havoc with sterling. First the pound weakened against the euro in late 2007 and early 2008. Then it started a steep drop against the dollar. Sterling looks especially vulnerable in the harsh new world that dawned after the credit crisis. Advocates of British membership of the euro found it difficult to make their case while sterling was thriving. Now the pound is being pounded they are finding a readier audience.

    Reply

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