When World War II ended the British pound could be exchanged for roughly four U.S. dollars. Today a pound would buy the holder $1.29. The British currency has plainly declined an enormous amount versus the dollar since 1945, but the previous stat realistically only tells us a tiny fraction of the pound devaluation story.
You see, the dollar has similarly shrunk in cruel fashion since 1945. Figure that a dollar purchased 1/35th of an ounce of gold in 1945, but today it buys roughly 1/1500th. Hopefully this gives readers a better idea of what Britain's monetary authorities have done to the pound over the last 75 years, along with what their counterparts in the U.S. have done to the dollar.
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