General   (General discussion, talk about anything.)

Peter Israel

Sterling has been in decline against major currencies since the end of WW2. It was mainly about debt then but these days it’s the unfunded liabilities of public sector pensions and debt. With debt the government can use devaluation to reduce the cost of debt. Public sector unfunded pensions are a contractual obligation which makes them inflation proof. Eventually they will need to be reformed.
Over the last 10 years the public sector pension liabilities have gone from £1 to £2.6 trillion. Total UK debt and liabilities are now £4.9 trillion.
Currency was one of the reasons I voted to leave the EU. I could foresee the day when EU members would have to accept the Euro which would leave the UK without a devaluation mechanism . It would be a rerun of the Exchange Rate Mechanism fiasco of September 1992 when the UK had to leave because Sterling was due to breach the lower limit of the ERM.