So much for 'the uncertainty of brexit' That seems very certain, in your
eyes... one is reminded of 'the science is settled, but we need a
another trillion dollars for scientific research' from the 'Climb-it'
Of course the answer is that actually no one knows. New Zealand lamb
will probably come down, and, as the Euro tanks, a lot of European
African food will be cheaper too. Once we are free to trade outside the
close EU markets with their tariff barriers to protect the French and
East European agricultural sectors.
With luck brexit will break up the EU and everything will get cheaper as
European countries have to either lower their currency valuations, or
get more efficient to compete in a free world market, rather than being
protected by EU tariffs and subsidies
"I guess a rattlesnake ain't risponsible fer bein' a rattlesnake, but ah
puts mah heel on um jess the same if'n I catches him around mah chillun".
On Tue, 31 May 2016 12:43:39 +0100, The Natural Philosopher wrote:
And /if/ "the pound will plunge against the dollar" UK made goods will
become more attractive abroad. That's good for UK manufacturing! :-)
It seems the EU will not need out help to break up. France & Italy could
be the next European economies to crash. As they are denied the option of
devaluation, both countries have relied on debt-funded public spending to
maintain economic activity and living standards.
They both share problems of slow growth, unemployment, poor public
finances and structural problems. They have found it difficult to reform
and face an increasingly tough political environment.
But the /real/ problem is the lack of competitiveness, and
underlying many of these problems is the single currency.
The New European Soviet - Mikhail Gorbachev
BULLSHIT given that Britain will be able to
get cheaper imports from other than the EU.
And the pound won't plunge anyway, essentially because
Britain will do fine outside the EU even if the EU chooses
to refuse to have a trade agreement unless it includes free
movement of people with the EU. And given that that is
true of just THREE of these, have fun explaining why they
would insist on that with Britain given that Britain is free to
make an obscene gesture in the general direction of the EU
and use the WTO rules any time it likes.
The UK imports more per head than most countries.
Hence the cost of living inevitably rises if the currency falls.
Even if that were true the pound would fall against the dollar
immediately after Brexit.
Currencies always fall if there is uncertainty about the country's economy,
and there would be uncertainty about the UK economy
since it would take time to make trade deals.
It is true that in the medium term the currency might recover.
Or it might not.
But it is certain that in the short term it would fall.
True, but there is no reason why the pound should
fall much given that Britain would be able to import
stuff from wherever it is cheapest, unlike now.
Not by much tho with the pound.
But would be able to import from where the imports are cheapest,
unlike currently, so the effect might well even be positive. Particularly
as the pound falling a bit would help the exports of what Britain does
still export like aircraft engines for heavys etc.
You haven't either established that the currency will fall relative
to the currency of the countrys Britain would import from when
it is free to import from anywhere it likes, or that even if it did,
that the currency would fall more than the cost of imports does.
Easy to claim and you previously claimed it would PLUNGE, too.
There would be no uncertainty about
Britain's economy if it left the EU.
Britain is free to trade under the WTO rules without any trade deals.
The currency isnt going to PLUNGE as you previously lied.
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