Yanis Varoufakis bombshell: Pound to Euro Exchange Rate ‘Paradox,’ weakness of pound against Euro is good news for UK

posted by Phil. T Looker, 22 July 2019

Former Greek finance minister Yanis Varoufakis claimed the reason why the euro is valued so highly compared to the pound or US dollar is because of a “delicious paradox” which sees the Eurozone actually being on the verge of a dramatic break-up, newly-resurfaced footage reveals.

Despite the uncertainty [surounding Brexit], the euro has largely remained strong since the 2016 referendum but, according to former Greek Finance minister Yanis Varoufakis, there is a shocking reason why this has occurred.

Mr Varoufakis called it a “delicious paradox”.

In a 2018 debate at the Oxford Union, the Greek minister explained: “Why do the money markets value the euro so highly compared to the pound, the American dollar?

“Suppose you are a Singaporean, Chinese, American or even a German investor, and for some reason, you agree with me that the fragmentation of the Eurozone is at an advanced stage, and the euro has never been weaker or more problematic.

“Should you sell your euros?

“No, let me share a secret with you. You should shift your euros to a German bank account.”

Mr Varoufakis explained that if the Eurozone breaks up and all the countries revert to their pre-euro currencies, euros held in German bank accounts will be re-denominated into Deutschmarks, which will be stronger than any other European currencies because of the country’s “huge account surplus”.

READ FULL STORY at express.co.uk

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China – UK dump the US dollar for bilateral trades

Another “told you so” post from Boggart Blog. It’s gets sooooooo booooooooring being right all the time but being endowed with the handicaps of independent minds and an abundance of common sense its a burden we Boggart Bloggers must bear.

flushing dollarsPicture source

From Zero Hedge
Following the initial de-dollarization meeting, there has been a slew of anti-dollar moves around the world (including Gazprom’s shift of 90% of its clients to non-dollar payments). However, on the heels of the “anti-dollar alliance” discussions yesterday, DW reports that China would start direct trade between the renminbi and the British pound on Thursday. China’s Foreign Exchange Trade System (CFETS) confirmed Sterling and yuan would be directly swapped without using the US dollar as an intermediary.

And from Boggart Blog back in March this year:

Not long ago members of our little team posting on Boggart Blog, Little Nicky Machiavelli and The Daily Stirrer warned you that the USA and EU had a lot more to lose than Russia if they got into an economic war with The Kremlin.

One proud, patriotic and utterly stupid American loftily informed me that the America had nothing to fear because the world trades in US dollars. That used to be right, unfortunately it is no longer so because China and the rest of the BRICS along with Iran and several other significant holders of vast natural resources have been dumping the dollar and making bilateral trade agrements for several years.

Well as usual, drawing on our vast pool of business and life experience we were right at this information that came to us via News Beacon Ireland shows.

Read full article

And You Thought We Were Joking

Yesterday we reported that David Cameron’s Conservatives were preparing to throw the election rather than inherit the festering cesspit Labour have turned our economy into.

You thought we were joking. OK, we have a track record for making light of serious things.

This morning’s fall in the value of the £ of nearly four cents against the $US which is itself on a downward spiral against more stable currencies and commodities shows that even when we are joking we have more idea about global economics than Gordon Clown and his troupe of red nosed morons.

Read Boggart Blog for the real news. The more idiotic and unbelieveable a story seems the more certain you can be that it is what’s really happening.

We’re not the only ones who think there issomething going on. Guido Fawkes pointed his readers to this story from the FT. Britain’s Credit Rating Lowered

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The Beer Standard – Now that’s what I call economics

The Economic situation may not be as bad as you think.

Years ago the world economy was based on the gold standard, every mark or frank or buck or a pound (cue song: tum tiddle um tiddle um tum tum) was worth a specified amount of gold. A pound was worth maybe a pea sized bit of gold, a frank guaranteed you a grain of rice sized lump of gold and a lira would be worth, on a good day, a grain of salt sized lump of gold. It sounds clunky but it worked quite well. Everybody knew what their money and investments were really worth compared to the price of fish.

With the global economy collapsing an Amercan economist has proposed a new standard against which currency values can be compared. Well Boggart Blog thinks he has anyway.

Washington Times finance writer Bob Battle has done some reasearch and found that $1000 invested in Delta Airlines a year ago would now be worth £49; the same $1000 invested in AIG stock would be worth just $33 while had it been used to buy Lehman Bros stock you would not have had a sausage, zilch, eff all.

BUT

If one year ago you had bought £1000 worth of beer in and saved all the aluminium cans you would not only have had the pleasure of drinking the beer but you could now weigh in the cans for scrap and they would be worth $214.

Quite clearly instead of having our currencies underpinned by debt and fancifully valued assets we should base the global system on beer.

Now that’s what I call economics.

(The person who feeds me the best reply pertaining to Arab countries being dry can treat themselves to an extra tinnie tonight.)

The Guardian on Sex And The Scouts story:
Baden – Powell would have poured cold water on sex education for scouts.