The
British economy may experience significant recovery in 2013 owing to
a series of circumstances related to the pound sterling.
Predicted
UK Economic Improvement
One
of the biggest problems weighing down the UK economy is the
over-valued pound sterling. As the pound is basically a debt-based
currency with no real support to uphold its artificially high value,
it is likely to drastically fall against other major currencies on
the exchange market, and this downgrading of the British currency
will probably come about as a result of continuing economic collapse.
The
positive aspect in this is that it will determine a marked fall in UK
unemployment and an increase in exports. Imports will fall, the trade
deficit will become narrower and possibly even turn in Britain's
favour, becoming a trade surplus. There are some very good reasons to
support the view that the super-pound, one of the biggest woes
affecting the United Kingdom's economy, is finally about to undergo a
thorough shearing process, reflecting more the image of a
down-to-earth British pound than the hitherto overgrown sheep
disguised as a lamb as we currently know it.
Britain's
Gold Reserves
The
UK's gold reserves amount to 310 tonnes all weighed and counted. This
is a far cry from Germany's 3,400 tonnes of gold reserves, Italy's
2,450 and France's 2,435 tonnes. Even Portugal has 382 tonnes of gold
reserves, 72 more than Britain, while the Netherlands have 612
tonnes, almost twice the amount the UK can boast of. Portugal
and the Netherlands both have a significantly smaller population –
and economy – than Britain, too!
And
the United States of America can account for over 8,000 tonnes of
gold reserves.
The
logical conclusion in the comparison of gold stocks is that the pound
sterling is unable to fall back on a monetary back-up system, whereas
Italy and France, which each have a population and an economy similar
in size to Britain's, both have eight times more gold reserves. These
two countries, and also Germany and the Unites States of America,
could use their gold stocks to back up their currencies, namely the
euro and the US dollar. The USA could even use their enormous
strategic reserves of oil and gas as a supplementary backup to
further strengthen the dollar, whereas the now defunct British Empire
does not offer Britain any control over the once abundant gold and
silver mines that used to fill London's Treasury and palaces.
And
how much is gold worth today? Well, with gold steadily increasing in
value and close to 2,000 US dollars per ounce, this means that one
tonne of gold bullion is worth between 60 and 65 million US dollars.
Revaluation
of Currencies
The
present financial world crisis is likely to see Britain's major
economic competitors use their national gold stocks to support their
currencies, thus leaving a debt-based pound with a 1 trillion pound
UK Public Debt, a trade deficit and a banking system in rapid
decline. Eurozone countries can count on many hundreds of billions of
dollars worth of gold bullion, as too the USA, with Britain by
comparison reaching a mere $18 billion.
And
while Britain's North Sea oil and gas reserves are in dire decline,
Greece has oil and gas reserves estimated in trillions of dollars!
So,
if the pound sterling should fall in value against the dollar and the
euro, perhaps by 50-75%, this should result in Britain's minimum
wage, once calculated in euros and zloties, being far too
insignificant to attract millions of Eastern Europeans to the UK.
British
jobs would go to British people, imports would become too expensive,
whereas exports would rise. Unemployment in the UK would fall, and
the housing market would be free of the massive influx of Eastern
European workers, thus reducing the cost of rent and the cost of
mortgages.
The
enormous strains on the National Health Service and on education
owing to mass immigration would be greatly alleviated, and the costs
of the UK benefit system would be enormously reduced as millions of
British people find work.
There
would be no more incentive for seasonal workers from Eastern Europe
to come flocking to the Promised Land of Sheer Bankruptcy and find
employment so as to send their income home, while paying hardly any
tax worth mentioning on their minimum wage, but exploiting in full
every social service offered in the UK.
In
short, come the devaluation of the pound sterling, come Prosperity!
Written by D. Alexander
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