Monday, December 31, 2018

Steve Keen - 'The Euro is a suicide pact'

The British Pound is overvalued because the City of London is the worlds money laundering centre, says Steve Keen. Britain thought it could do away with manufacturing and export service industries instead, but it hasn't worked out. Steve keen says the UK would be better off with a fall in the Pound to revive manufacturing.



Ralph Musgrave said...

Oh yes? Why bother working away in factories if foreigners are prepared to pay you more for your banking, insurance and other services? Come to that, if foreigners are prepared to pay to compose music or stand on your head singing Abba songs and the pay is good enough, why not do that?....:-)

Andrew Anderson said...

One reason the Pound is overvalued is that it can buy the inherently risk-free debt of a monetary sovereign that nevertheless has positive yields!

So welfare proportional to account balance is one reason the Pound is strong.