Gbp/Usd & UK general election 2015

The chart shows the relative state of the parties from 13 May 2010 to the date the next election is held, with each line's colour corresponding to a political party: red for the Labour Party, blue for the Conservative Party, purple for the UK Independence Party, yellow for the Liberal Democrats, and green for the Green Parties. While not being shown, other parties such as the Scottish National Party have on occasion polled higher than one or more of the parties represented.

The Currency Cascade

I Nations engage in competitive currency devaluations in order to increase exports, if one country can intervene to lower its currency’s value, other countries can do the same.
The European Central Bank wants to drive the euro’s value lower against the dollar, since the US Fed has engaged in multiple programs of quantitative easing. The self-reliant Swiss succumbed to the monetary debasement last summer when its currency was in great demand, driving its value higher and making exports more expensive.
Lately the head of the Australian central bank hinted that the country’s mining sector needs a cheaper Aussie dollar to boost exports.
There is one country that is speaking out against this cascade: Germany. But Germany does not have control of its own currency. It gave up its beloved Deutsche Mark for the euro, supposedly a condition demanded by the French to gain their approval for German reunification after the fall of the Berlin Wall. German concerns over the consequences of inflation are well justified. Germany’s great hyperinflation in the early 1920’s destroyed the middle class and is seen as a major contributor to the rise of fascism.
As a sovereign country Germany has every right to leave the European Monetary Union and reinstate the Deutsche Mark. I would prefer that it go one step further and tie the new DM to its very substantial gold reserves.
Should it do so, the monetary world would change very rapidly for the better. Other EMU countries would likely adopt the Deutsche Mark as legal tender, rather than reinstating their own currencies, thus increasing the DM's appeal as a reserve currency.
As demand for the Deutsche Mark increased, demand for the dollar and the euro as reserve currencies would decrease. The US Fed and the ECB would be forced to abandon their inflationist policies in order to prevent massive repatriation of the dollar and the euro, which would cause unacceptable price increases.
In other words, a Deutsche Mark would start a cascade of virtuous actions by all currency producers. This Golden Opportunity should not be squandered. It may be the only non-coercive means to prevent the total collapse of the world’s major currencies through competitive debasements called a currency war.

The European Currency Unit (or ECU) was a basket of the currencies of the European Community member states, used as the unit of account of the European Community before being replaced by the euro on 1 January 1999, at parity. The ECU itself replaced the European Unit of Account, also at parity, on 13 March 1979. The European Exchange Rate Mechanism attempted to minimize fluctuations between member state currencies and the ECU. The ECU was also used in some international financial transactions, where its advantage was that securities denominated in ECUs provided investors with the opportunity for foreign diversification without reliance on the currency of a single country.
  • Belgian Franc – 8.183 %
  • German Mark – 31.915%
  • Italian lira- 7.84%
  • Danish Krones – 2.653 %
  • Dutch Guilder- 9.87%
  • Spanish Peseta – 4.138%
  • British Pound – 12.452%
  • French Franc- 20.306%
  • Irish Punts- 1.086%
  • Greek Drachmas- 0.437%
  • Luxembourg Franc- 0.322%
  • Portuguese Escudos- 0.695%  
  • ...

III ECU Futures & Bonds \ Basket Bonds
Each major economic power is now racing each other to buy more bonds. As an investment in Europe, ECU bonds offers both stability and a higher return over securities denominated in some of the strongest Western European currencies.
Because the ECU is a basket of European currencies weighted to reflect a country's economic strength with limited fluctuation ranges, it is more stable than any one of its member currencies. National identity influences attitudes toward currencies, social identity theory helps explain the home bias in people attitudes. This process expresses the human need for positive self enhancement.