Brexit vote fucking the UK
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evince
Truthmatters
things got worse a few days later when French President Francois Hollande promised the EU wouldn't make it easy on the U.K.
The British currency is now down more than 18 percent against the dollar since June 23, when voters backed leaving the EU. The pound traded as low as $1.2130 on Tuesday, down from $1.4879 on the day of the referendum.
All of this matters to British consumers because a weaker pound means importers will have to pay more for goods purchased abroad, and they are expected to pass those costs onto customers.
"We will see that first with goods like perishable foods, items such as bread, eggs, and milk," said Daniel Vernazza, the lead U.K. economist at UniCredit, "The weekly shop will increase. The cost of filling up your car will increase, and the like, and the costs of holidays, a whole range of goods and services."
Those costs are likely to start edging up on perishable goods and fuel either right away or in the coming days. Holidays abroad are automatically more expensive as the pound has dropped against the destination country's currency. But the full effect of inflation on the broader range of goods and services comes in after a year or more, when costs filter through the supply chain, where importers and exporters use contracts that cover months at a time.
"Someone is going to pay for it in the end, and it's going to be you and me doing the shopping on the weekend," said Bowles.
The British currency is now down more than 18 percent against the dollar since June 23, when voters backed leaving the EU. The pound traded as low as $1.2130 on Tuesday, down from $1.4879 on the day of the referendum.
All of this matters to British consumers because a weaker pound means importers will have to pay more for goods purchased abroad, and they are expected to pass those costs onto customers.
"We will see that first with goods like perishable foods, items such as bread, eggs, and milk," said Daniel Vernazza, the lead U.K. economist at UniCredit, "The weekly shop will increase. The cost of filling up your car will increase, and the like, and the costs of holidays, a whole range of goods and services."
Those costs are likely to start edging up on perishable goods and fuel either right away or in the coming days. Holidays abroad are automatically more expensive as the pound has dropped against the destination country's currency. But the full effect of inflation on the broader range of goods and services comes in after a year or more, when costs filter through the supply chain, where importers and exporters use contracts that cover months at a time.
"Someone is going to pay for it in the end, and it's going to be you and me doing the shopping on the weekend," said Bowles.
cancel2 2022
Canceled
I would discuss this with somebody intelligent and economically literate, but you are neither so go suck on a weasel jizz popsicle.
cancel2 2022
Canceled
If you want to know what is really going on then listen to what Lord KIng, ex-Governor of the BofE, and Ashoka Mody, the IMF’s former deputy-director for Europe has to say!!
Britain should embrace weaker pound and it needs to fall further, says former BoE governor and currency guru
10 October 2016 • 7:54pm
The slump in sterling is a blessing in disguise after years of overvaluation and helps to break the corrosive stranglehold of the financial elites over the British economy, according to a former bail-out chief for the International Monetary Fund. “It is desirable from every point of view. The idea that Britain is in crisis or is on its knees before the exchange rate vigilantes is ludicrous,” said Ashoka Mody, the IMF’s former deputy-director for Europe and now at Princeton University.
“The UK economy is rebalancing amazingly well. It is a stunning achievement that a once-in-fifty-year event should have gone to smoothly,” he told the Telegraph.
[Sterling's fall] is desirable from every point of view. The idea that Britain is in crisis or is on its knees before the exchange rate vigilantes is ludicrous. Professor Mody, who led the EU-IMF Troika rescue for Ireland, said the pound had been driven up to nose-bleed levels from 2011 to 2015 by global property speculators and the banking elites acting in destructive synergy, causing serious damage to Britain’s manufacturing base and long-term competitiveness. The role of the City as the unrivalled financial centre of Europe made it a magnet for speculative property flows from Russia, China, the Mid-East, and the wider world, a bubble that was further leveraged by cheap dollar credit though global banks operating in London.
“It was essentially a bank-property nexus, and the rest of the economy was left to suffer. It is stunning that just 1.4pc of all loans were going to the manufacturing sector,” he said. The country was suffering a variant of the ‘Dutch Disease’, although in this case the problem was over-reliance on finance rather than commodities. “Britain was borrowing 5pc to 6pc of GDP a year to buy imports and live beyond its means. The strong pound was great if you wanted to buy a Mercedes Benz of take a holiday in Spain, but the prosperity was an illusion, borrowed from the future,” he said.
Prof Mody said the pound was 20pc to 25pc overvalued in trade-weighted terms before the Brexit campaign got underway, based on classic IMF measures of the real effective exchange rate (REER). This currency distortion would have inflicted deep damage if it had been allowed to continue for another five years.
“History is going to judge that Brexit at last broke the political-economy lock of a British elite wedded to banking interests, even if it happened completely by accident,” he said.
Britain’s current account deficit was 5.9pc of GDP in the second quarter, the highest in the developed world and has been flashing warning signals for years.
While views differ on the level of overvaluation, this chronic deficit is prima facie evidence of a misalignment. Lord King, the former Governor of the Bank of England, echoed the comments on sterling, saying the sell-off was largely welcome. "During the referendum campaign, someone said the real danger of Brexit is you'll end up with higher interest rates, lower house prices and a lower exchange rate, and I thought: dream on. Because that's what we've been trying to achieve for the past three years and now we have a chance of getting it. I don't think we should fear [Brexit]. It's not a bed of roses, but nor is it the end of the world," he told Sky News.
Read more: http://www.telegraph.co.uk/business...pound-slide-liberates-uk-from-malign-grip-of/
Britain should embrace weaker pound and it needs to fall further, says former BoE governor and currency guru
10 October 2016 • 7:54pm
The slump in sterling is a blessing in disguise after years of overvaluation and helps to break the corrosive stranglehold of the financial elites over the British economy, according to a former bail-out chief for the International Monetary Fund. “It is desirable from every point of view. The idea that Britain is in crisis or is on its knees before the exchange rate vigilantes is ludicrous,” said Ashoka Mody, the IMF’s former deputy-director for Europe and now at Princeton University.
“The UK economy is rebalancing amazingly well. It is a stunning achievement that a once-in-fifty-year event should have gone to smoothly,” he told the Telegraph.
[Sterling's fall] is desirable from every point of view. The idea that Britain is in crisis or is on its knees before the exchange rate vigilantes is ludicrous. Professor Mody, who led the EU-IMF Troika rescue for Ireland, said the pound had been driven up to nose-bleed levels from 2011 to 2015 by global property speculators and the banking elites acting in destructive synergy, causing serious damage to Britain’s manufacturing base and long-term competitiveness. The role of the City as the unrivalled financial centre of Europe made it a magnet for speculative property flows from Russia, China, the Mid-East, and the wider world, a bubble that was further leveraged by cheap dollar credit though global banks operating in London.
“It was essentially a bank-property nexus, and the rest of the economy was left to suffer. It is stunning that just 1.4pc of all loans were going to the manufacturing sector,” he said. The country was suffering a variant of the ‘Dutch Disease’, although in this case the problem was over-reliance on finance rather than commodities. “Britain was borrowing 5pc to 6pc of GDP a year to buy imports and live beyond its means. The strong pound was great if you wanted to buy a Mercedes Benz of take a holiday in Spain, but the prosperity was an illusion, borrowed from the future,” he said.
Prof Mody said the pound was 20pc to 25pc overvalued in trade-weighted terms before the Brexit campaign got underway, based on classic IMF measures of the real effective exchange rate (REER). This currency distortion would have inflicted deep damage if it had been allowed to continue for another five years.
“History is going to judge that Brexit at last broke the political-economy lock of a British elite wedded to banking interests, even if it happened completely by accident,” he said.
Britain’s current account deficit was 5.9pc of GDP in the second quarter, the highest in the developed world and has been flashing warning signals for years.
While views differ on the level of overvaluation, this chronic deficit is prima facie evidence of a misalignment. Lord King, the former Governor of the Bank of England, echoed the comments on sterling, saying the sell-off was largely welcome. "During the referendum campaign, someone said the real danger of Brexit is you'll end up with higher interest rates, lower house prices and a lower exchange rate, and I thought: dream on. Because that's what we've been trying to achieve for the past three years and now we have a chance of getting it. I don't think we should fear [Brexit]. It's not a bed of roses, but nor is it the end of the world," he told Sky News.
Read more: http://www.telegraph.co.uk/business...pound-slide-liberates-uk-from-malign-grip-of/
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FUCK THE POLICE
911 EVERY DAY
On the bright side the British now have an abundance of toilet paper.
cancel2 2022
Canceled
Yeh you can use the new five pound note, that's made out of plastic. Should sort out your haemorrhoids in no time!