Just kiss the pound au revoir

I hear that Unilever and Tesco have sorted out their differences and ten days of making Marmite are no longer looking to be a possibility.  My guess is that committed types may put a few jars away in case of another Marmite emergency.

It looks with the devaluation of the Pound Sterling to levels not seen in over 168 years, according to The Guardian, imports are likely to go up in price and suddenly there's more pay off to buying local and making things ourselves.  If there's a good news story in the devaluation of the Pound Sterling it is the potential boost to local industry.  Expect local food to be cheaper and the new smart phones to increase in value dramatically.  Before you know it, everyone will be drinking tea and losing weight because food is expensive.

The Pound Sterling has been devalued before, and will likely be devalued again.  It will go back up once things improve, expect them to get worse before they get better.  Hopefully local housing will get cheaper but the cost to import building materials will go up.  It's great news for local tourism operators but not good for airlines going away from Pound territory.  Yes, holidays in Devon, Devonshire tea, homemade lemonade and before you know it Enid Blyton will be the author du jour.

Britian, you've been here before:

Pound devalued 30 per cent in 1949
https://www.theguardian.com/century/1940-1949/Story/0,,105127,00.html

BBC Evanomics blog post about previous devaluations:
http://www.bbc.co.uk/blogs/thereporters/evandavis/2007/11/on_devaluation.html

I tend to agree with this Blogger that a devaluation of a currency is not good news.  In the short to medium future things economically will likely get worse.  I also agree that the sun will shine again and things will improve.  This is the nature of capitalism when it's left alone to do its thing within reason.

http://theageofstupidity.blogspot.com.au/2009/09/british-pound-devaluation-delusions.html

A pound devaluation will cost the British public:

https://politicalscrapbook.net/2016/08/why-the-pounds-devaluation-says-more-about-britain-after-brexit-than-the-stockmarkets/

Devaluation may just be business as usual:
http://www.bloomberg.com/news/articles/2016-07-04/brexit-accelerates-the-british-pound-s-100-years-of-debasement

Disclaimer: this is the opinion of the author only.  For professional financial advice seek the services of an appropriate professional.

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