European Supremacy

I was thinking today, just before I buy my euros for our annual trip to Normandy, has the euro finally won the big pound v euro debate. Why on earth did we not join in 2001 where have all the euro skeptics gone, crying over their empty wallets I believe.

In 2003 when I first went to Normandy the exchange rate was about 62p todays rates is 79p that in real terms mean that for every pound that we spend in France we have lost 17 pence in real money. In effect thats the duty free out of the window.

Thats a 27% increase in the value of the euro, ah you may say the pound is really strong against the dollar but hey how many times do we take a day trip to usa.

That means that it costs 27% more for UK industry to trade with the euro market place or 27% more to buy our products from the continent.

The real problem comes when we start bringing the dolar into the equation in 2002 the dollar was worth 1.10 euros, today this is 1.54 euros if my maths is right thats a 40% increase.

So what does this mean lets take one example for every barral of oil bought by opec in 2002 if they had brought in euros then they would not have lost, my maths is failing at this point lets say they have lost alot of money!!!

Now imagine this lets say opec says we are no longer going to manage our oil in dollars but from now on we are going to use euros, how long would the american economy last about five minutes I think. what will this mean for the world ecconomy.

Now lets put the conspiratory theory hat on is that why the yanks insist on invading oil rich countrys and being pally with the saudis. Is this why the BAE case was dropped!!!

OO I wonder !!