Currencies

Something a lot of people are talking about the Euro, Dollar and Pound.
The Pound lost most of its value over the last 120 days the Dollar appreciated from about 1$=.57 GBP where now $1 = .67 GBP and was as high as .73 GBP.

Great Britain was in the news a whole lot over the last couple of weeks. Especially the speech of Daniel Hannan was a much talked about topic (for those who missed it: http://www.youtube.com/watch?v=94lW6Y4tBXs)
It seems Great Britain has a very difficult time dealing with this global downturn in the economy. One fact that shows this more than anything else is the depreciation of the GBP to the Euro the exchange rate is almost 1 to 1 (1.05 Euros = 1 GBP).

But what lies in the future? The big question is how will inflation develop in the US. Will the trillion dollar expenditures of the government drive inflation beyond what we experienced summer 2008? will the oil price go back up and prices at the gass station hit 3 or even 4$/gallon?
What will the new government do to stop inflation? will it continue to increase its involvement in the business world?

these are many difficult questions and only one thing seems for sure. History has a track record of a stong increase in inflation when the economy comes back from a recession with excessive government spending.