Pounded

As an American, I know having your currency get “pounded as the dollar fell against the Euro and other major currencies. The British pound topped out at 1.62USD per GBP back in April and Oct 2012 and since Oct, it has fallen steadily. The realization the British government needs to continue quantitative easing (what hurt the dollar originally) and continues to have an extremely weak economy or even falling into another recession is the best reasoning for the falling pound. Economic cycles are funny as history very often repeats itself. When you deflate your currency, your goods become more attractive overseas and you sacrifice the international purchasing power of your country’s folks overseas, OR when your economy continues to be weak, you have to try everything including the kitchen sink. The US FED has done this and somehow the US has not collapsed under one of the most disastrous spending sprees in history. I hope other countries learn, that economic growth and lower barriers to entry and free capital flow, makes everything better…….not just buying your own debt and priming the pump. Happy Monday…Cheerio