[HPFGU-OTChatter] euro debate/economic issues

[Ladi lyndi]

--- Scott wrote:
> As I understand it, and economic issues are
> confusing to me so I'm 
> probably wrong, the pound is more valuable than
> the US dollar, 
> because it takes more s to equal $1.  The
> exchange rate is 
> currently $1= .602 and 1= 1.41973 Euro
> so...the Euro and USD are 
> closer in value, but still less valuable than
> the GBP ().  
> 
> If the UK joins the Euro currency would they be
> in effect weakening 
> there monetary value in the international
> community? Or (and because 
> I don't think that last sentence is stated
> correctly perhaps this 
> makes more sense) are they likely to help
> strengthen the Euro by 
> their addition, and thus make it more
> compatible to the USD ($). Is 
> that the point, and if it is is it not better
> for the EU than for 
> the UK specifically. Is that the issue?


Lynn:

You've used two different ways of looking at the
exchange rate so that may make things more
confusing.  According to my converter - it takes
$1.66 to equal 1 pound and 1.42 euro to equal a
pound.  $1.17 equals 1 euro.  So, the British
Pound is the strongest of the three currencies at
this point, and the euro is stronger than the
dollar.

I've been listening to a lot of debates on
Britain changing over to the euro and it really
seems to depend on how intricately a business is
linked to the EU.  Also, there had been an
experiment years ago with a common monetary
system in which Britain got burned badly.  This
would, of course, make some people shy of joining
in.  And, let's not forget the horror stories out
there of prices rising due to the changover to
the euro - a lot of them true.  This has people
concerned about what a changover would do to the
British economy, not to mention having other
people dictate things, such as interest rates,
which will affect a country's economy.  It's
really all about balancing the pluses and minuses
and determining what's best.  Of course, one
person's plus could be another person's minus.

As an outsider, I think Britain joining the euro
would strengthen the euro but may not be a good
thing overall.  It would encourage investment in
the EU but I think it would end up stimulating
other economies rather than stimulate the EU
economy.  If you get a better exchange rate due
to the weaker dollar, you'll buy there.  For
example, if we want books, we'll buy from
Amazon.com rather than Amazon.co.uk because the
advantage of the exchange rate between the dollar
and the pound more than covers any extra shipping
costs, so we save money.

A discussion on BBC last night brought up another
point.  If Britain plans to stay as part of the
EU, their participation in the euro may well be
inevitable.  So, should they join now and perhaps
have a stronger voice in the direction of the
economic policies or join later and have a weaker
voice while countries such as Germany and France
dictate the direction.  Of course, with the new
countries joining the EU, new voices may emerge.

I'm sure, this really didn't answer your question
at all and may have just muddied the waters.  LOL

But you did raise a question in my mind regarding
galleons and pounds.  Is that exchange rate based
on the price of gold and who sets that price, the
muggles or the goblins?  Does it fluctuate with
the gold market or is it based on how much actual
gold is in circulation in the WW?  After all
Bills says that Gringott's doesn't care what he
looks like as long as he keeps bringing in the
gold.  Also makes me wonder just how much gold is
in all those pyramids and if some of them are the
crypts of ancient Egyptian wizards?

Lynn

=====
For the international news that's fit to print
http://groups.yahoo.com/group/cnnworldnewsq-a

__________________________________
Do you Yahoo!?
Yahoo! Calendar - Free online calendar with sync to Outlook(TM).
http://calendar.yahoo.com