Posted on 06/24/2016 2:36:50 PM PDT by Berlin_Freeper
Talk about a non-story!
If “leave” sentiment takes hold, it will be the Euro taking a beating. They’re crowing now because it has to look bad for Great Britain to leave, otherwise others will follow.
But, if the downturn continues, demand drops, then the producers of the raw materials will have to take that into consideration. The raw material producers still have to sell their products if they want to make money and stay in business. Just saying.
Still will be trying to catch up to California.
During trade negotiations, the EU is going to put the screws to the UK.
This is all a big pantload.
First off, most of these so called negative effects, markets etc are going to go back. This is all temporary.
France now has a larger economy? Is it producing more goods and services than last week? Hell no. Is the UK producing fewer? Nope. This is all relative currency valuation. And the real irony? Everyone has been deliberately debasing their currency in a race to the bottom. According to current dogma, a weaker pound should be wonderful. But because it is happening via Brexit, oh no, the sky is falling.
If the Pound Sterling remains low, that will counter a fair amount of any attempted EU penalties.
You can only reduce the price of your product so much and still stay in business.
Well, it remains to be seen what the outcome of this will be.
It is shear hysteria and speculation.
The German BDI (Federation of Industry) are already crying out for a free trade agreement to be instituted with the UK.
They sell stuff to us, you see. We have a trade deficit with them. We have a void that anyone who makes cars and bikes (India, China, S Korea etc) can fill - but Germany can’t so easily find another well-off customer.
We hold the whip-hand. The only way we get a bad deal is if the Conservative party messes up.
The U.K. needs the E.U. more the E.U. needs the UK.
Other way around. We are a huge customer. If they lose us behind a tariff wall of their own devising, then their manufacturers will crash and burn.
Markus Kerber of the German BDI has already acknowledged this, though perhaps not in such colorful language.
Yes. It will help their exports and tourism, to name a few. Other countries are trying to devalue their currency and Britain did it in one night!
Trump pointed out the benefit of the devalued currency and I saw Hillary tweet mocking him about it. She’s the moron, but people following her that don’t understand monetary policy will agree with her.
The sky is falling, the sky is falling.
Yep.
Bingo! I just made a similar post.
The absurdity of that statement should be obvious. What they mean, is that by the current exchange rate for the pound, in comparison with the Euro/Dollar/Yen/Swiss Franc/ etc the blah blah.
Obviously the British economy didn’t lose value overnight. Pure stupidity.
They have a trade deficit but there's not a huge difference between exports vs imports. Their top export markets are not completely dominated by EU nations. Neither are their top importers. They will likely suffer increased inflation in the near term, but exports will increase due to more favorable currency exchange. The primary source of legitimate worry appears to center upon London and finance.
“In news that will be welcomed in Paris’ financial sector, economists say Britain has dropped into sixth place in the wake of a vote for Brexit.”
That kind of logic has always puzzled me. There was a vote and somehow wealth that was in England disappeared in a matter of hours. It also indicates that it could return in a matter of hours if it merely depends on someone’s state of mind.
You would think that wealth is attached to goods and services, production capacity, consumer purchasing power, mineral stores, intellectual capital, etc.
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