Dropping pound . Is it time to quit the Euro Med

Should it not be the other way around? Britain should join the euro to avoid this volatility of the pound and the erosion of equity. I know this is a bit late, but better late than never...?? The pound sterling has been volatile for decades now so this is not something new. Time to draw the correct conclusions and act. Call your MP.

To answer your specific question on 'where to go?': it is difficult. The dollar and the euro are now so dominant that most other developed/developing economies are linked to one of the two. I spend a lot of time in Turkey and you would think that you would get a break here, but no: lots of prices are pegged to the euro although they are expressed in Turkish lira.
 
Yup its pretty painful.
When we started thius Mediterranian liveaboard lark four years ago you got 1.47€ to the pound. Now its 1,1€ per pound. The price of fuel has also increased from 1€ to 1.5€ in the same period
It could be that the UK is the place to go as marina prices plummet with the failing economy. I WISH!!!!!!!!!!!
 
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Spare a thought for this poor Aussie who has been dreaming for several years to make 2009 the year that I buy a small liveaboard in the Med to live out my retirement years.

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I hear you ... The majority of my money is in AUD, it's killing me. Maybe consider buying a small liveaboard in the Caribbean instead. Or maybe the Sth Pacific, at least then you're closer to home. Not that I've really been to the Med, but it seems crowded and overpriced to me.
 
I read

the original post as an enquiry as to whether he should cruise outside the € currency area within the Med.

I therefore intend to answer that question rather than get into a discussion in the field of economics where any two experts will give you three agreed answers.

Personally, having been to Arab N Africa, I am intending to leave €land in favour of Turkey.
I fear, however, that we're seeing not just an appreciation in the €, but a additional depreciation of the £.
My guess is that it will take >2 years for things to sort out and for stability to return to markets - I am pretty sure that we'll not see again, the £ overvalued against world currencies as it was during 1995 - 2007.
 
Re: I read

Charles, you are very welcome to Turkey but do not expect that will free you from euro influence. Food is clearly cheaper than in euroland, but all marina charges are in euros. If you plan to buy any property, you will also find that it is priced in euro.
 
Re: I read

Time for the UK to join the Euro. Plain stupid not too, most companies who trade in Europe work in the Euro - the only place the UK doesn't see the Euro is in the pocket.

Call your local spineless, yellow bellied 'Professional' MP (who's sole concern is just getting re-elected, and nothing to do with government!) to act now and vote for the Euro.

The £ is shafted!
 
I\'m afraid

wherever you go round the Med, you'll find the pervasive influence of the €. What else can one expect as it's challenging the US$ as a reserve currency, just as in the 1950s the US$ was challenging the £sterling.

If the UK goes into the € at this time it will be because the £ has collapsed (a not improbable scenario) and we're running for cover just as Iceland has had to.

Fortunately for me I have a house in the UK (with no mortgage) and a boat in the Med (entirely my own) and am my own master.

I guess that local influences rather than the € across the water will tend to set the price trends in Turkey - especially when the German economy releases all the gastarbeiten, which will be coming in the next few months, if Peer Steinbreuken has his way.
 
I think it fair to say that the liveaboard has a very different perspective on common currency from your Daily Mail reading Middle Englander for whom the defence of the Pound Sterling is close to a crusade.
Any MP seriously advocating the UK joining the common currency could risk lynching by his constituents after being barbecued in print by the Sun and others.

Liveaboards have experienced the virtues of the single currency, the ease with which you can move through countries without the worries of sudden currency movements. However I suspect we would be hard put to convince Disgusted of Tunbridge Wells!
 
Re: I read

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Charles, you are very welcome to Turkey but do not expect that will free you from euro influence. Food is clearly cheaper than in euroland, but all marina charges are in euros. If you plan to buy any property, you will also find that it is priced in euro.

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As Lady Jessie said. I have just renewed my marina fees in Turkey, I got a great discount on the fees as I am now a repeat customer, however this was completely wiped out by the Euro/GBP exchange rate. It was 1.4:1 when I paid last year and now just paid two weeks ago at 1.15:1 so ended up paying the same as last year, as the Marinas base prices on Euro.

Regarding property in Turkey I was very lucky, I bought a place at 1.43:1 and fixed it in GBP at time of contract. Two months later it was down to 1.3:1 so saved few quid by fixing the currency and paying deposit.

We were intending to keep this property for a few years and then upgrade, however we fell in love with another property last trip through the same developer (completed building not off plan) We managed to negotiate "last years original price" and again fixed it immediately in GBP in November at 1.26:1 and in the last month t has dropped to 1.11:1. so again we were lucky. If we were a month later we would not have considerd it at 1.11:1.
 
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With the pound dropping down to almost below the Euro is it time to Quit the EEC .? Bot where would one go ? Africa?

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I am not an expert. But I think that sterling will recover against both the EUR and the USD. This is a short-term aberration. There are some other huge issues surrounding the 'Club Med' lands that are vastly more important than the rate of exchange.

Before making any suggestions, I'd want to know what you are looking for and to have some idea of your resources -- skills, crew, health, interests, timescales, etc.

Rates of exchange are going to be very volatile for some time. If you are planning to spend some time living in a country with a different currency to your own it is a fairly simple matter to buy that currency when the exchange rate is favourable.

Africa is not a good choice unless you enjoy a constant challenge.
 
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I am not an expert. But I think that sterling will recover against both the EUR and the USD. This is a short-term aberration. less you enjoy a constant challenge.

[/ QUOTE ]I am very happy to take your bet, Lemain. The odds are pretty low right now, so I am in!

Joking aside, this is unfortunately the status of the sterling at this point: a low bet with little upside. As has been correctly noted above; this is not the best point to join the euro. It would be at a low conversion rate, but I think you might have missed the better rate opportunities and this might be the best you can get. You should seriously consider taking it.

You should be OK'ish if your assets are presently in pounds sterling and if you only ever plan to spend money in pounds sterling. But if you plan to sail away from the British shores sometime in the future: get your assets into euro or usd ASAP!
 
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get your assets into euro or usd ASAP!

[/ QUOTE ]Jeeez......I doubt that's good advice. Are you an expert?
 
Am I an expert? What is the definition of that? Very recently we had investment managers at mutual funds being paid many 100's of millions of dollars in compensation for being 'experts'. That really did not give us any intelligence that we could action on, did it? No, I am not an expert. Just a simple accountant that has tried to use common sense in my investments. Did I get it wrong? Yes, lots of times. But I am still ahead in the good bets.
 
The USD has become a mini bubble. Will either burst or deflate along with Treasuries. The advice to move into USD is too late. Of course it might trade sideways for a bit longer; who can say in thee uncharted times? But down it will go, and fairly soon. The really interesting question is which currency will be next to be 'favoured'? EUR? No. JPY? Possible. Au? Possible.
 
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With the pound dropping down to almost below the Euro is it time to Quit the EEC .? Bot where would one go ? Africa?

[/ QUOTE ]Looks like Oz would be good. /forums/images/graemlins/cool.gif

Pity about their cruiser-unfriendly reputation.
 
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Are you an expert?

[/ QUOTE ]Yes, I am a bubble expert.
 
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