The value of British pound has dropped by two thirds in 30 years. What backs paper money today is just pure faith on politicians' empty promises to keep it scarce. No currency has ever retained or regained its initial value, unlike precious metals.
Just over a 100 yrs ago, the pound was the international reserve currency and they were the world superpower.
Within 2-3 generations, they were bankrupt, and had to be bailed out in 1976. Today they still have staggering debts.
Who will the market punish first? The GBP, JPY or the USD (the worst among the lot?)
http://uk.finance.yahoo.com/news/a-pound-now-%E2%80%98worth-33p%E2%80%99-114714460.html
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