From the Guardian, just now:
And Bachman Turner Overdrive from 1974:
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And a cheaper pound is great news for British exporters, bad news for overseas imports, which sounds like a good idea to re-balance the UK economy.
The FTSE dropped to 3500 at the height of the GFC in 2009, so it seems the large financial asset owners have had a very good run for their QE money since then so a small blip is hardly likely to hurt them in the long run.
It’s always odd to me how good news for many so often gets presented as bad news for a few.
We import much of our food and are net importers generally so clearly the pound falling is not a good thing. Also the price of the raw materials used in manufacturing will rise. So where is this good news exactly?
Because there will be a greater opportunity for domestic producers of food and most other UK business to compete with the importers. Which will improve the balance of trade in the UK’s favour.
I have to say that I seriously doubt that Keith. It’s not what anyone in the industry that I speak to (and I live in East Anglia, so I do) says
Do the normal effects of currency devaluation no longer apply?
The Wiltshire pig farmers and Somerset apple producers selling much of their produce overseas will surely have a greater price advantage over their foreign competitors, with a lower value pound sterling.
And if any EU countries choose to cut off their noses to spite their faces by imposing punitive tariffs during any post-Brexit negotiations, there is a very big world market just waiting for high quality, lower price British products to import.
As I said in an earlier comment, there will be winners and losers and a period of adjustment, but to state categorically that the UK as a whole will suffer surely ignores some of the fundamental “laws” of economics and international trade?
Agriculture is the most EU dependent UK sector, I suspect by far
I found this reference to UK-EU agricultural trade balance.
“On the trade side, the EU accounts for 62% of UK exports and 70% of UK imports of agri-food products (2013 figures).”
I am no agricultural expert but this is clearly a two way street, so I see no problem in post Brexit agricultural trade/tariff negotiations.
The bigger issue for landowners and farmers, I would have thought, is what would happen if we exit the Common Agricultural Policy which has amongst other things some very perverse incentives rewarding landowners and farmers for some very questionable activities.
But post Brexit, that would be in the democratic control of the British government and clearly if farmers did not like the new UK regulations they could lobby, pressurise etc in the “normal” democratic way. Or if all else fails vote for a new government – which they can’t do with the EU and CAP.
But that ignores people and grants
“But that ignores people and grants”
Richard you’ve lost me on this comment, how does this relate to the agriculture debate we were having?
Because it is not the trade per we that is the only issue
These issues impact agriculture as much
This is the elite billionaires throwing their toys out of the pram to back up the bullying by their cipher MPS, MEPS etc UK and foreign.
This is a message to those that pull the strings behind the scenes. No thank you I don’t want to be in your plans for eventual world government under a sociopathic neo-feudal system dominated by transnational mega corps that have stitched up 60% of the world trade.
You can stick TTIP TISA etc where the sun doesn’t shine!
I’m voting OUT in order to defend the UK’s democracy and sovereignty!
That’s exactly how I FEEL- but will still abstain because which ever way you look-it’s neo-liberalism and buffoon politicians (let’s play at politics while finance management crony capitalism does the real job for us.
According to the report, traders are dumping shares and buying bonds in a number of European countries with yields falling to all-time lows. The ECB will support ‘investor confidence’ in the case of Brexit. What investor confidence, there isn’t any.
Another swings and roundabouts game based on a superstition and quasi religious basis for how money works.
Big landowners receiving lots of lovely loot from EU must be wondering where their next tax-break is coming from. Oh One guess who foots that bill.
Democracy? http://www.worldaudit.org/democracy.htm
Sovereignty? “To enter into commercial obligations and treaties is an exercise of sovereignty, not derogation from it.” (Margaret Thatcher). “A country can be wholly sovereign yet have little influence. Britain has signed some 700 international treaties that impinge on sovereignty.” (The Economist, 19.03.16)
Brexit will provide huge benefits economically in the long-term. My only worry is loony ideas seen here such as ‘peoples QE’ which is a spin on ordinary QE. QE doesn’t create any wealth. It will take confidence out of the economy, cause a sterling crisis and undermine BoE credibility. Money printing doesn’t work. It doesn’t matter whether you shovel cheap and easy money to the hands of banks or national infrastructure banks.
You clearly do not understand money or macroeconomics
So let’s reduce this to basics. Money printing is credit creation. How does this create wealth when in the private sector but harm it if the state does it when the private sector refuses to do so?
I would appreciate a reasoned argument and do not refer to Says Law
Funny how when banks ‘print money’/create credit to fuel rampant house price and rent inflation thats just fine. Though it creates nothing new and few jobs. But the idea of the government doing the same to invest (in the true meaning of the word) in infrastructure is seen as being one step away from becoming a Zimbabwe.
About time we included rental costs in the inflation indexes – seems a bit of an omission when thats 30-60% of peoples household expenditure. And what would that make our current level of inflation?!
Agreed
Yes I agree
This is just fixing the market short term to show FTSE down and £ down.
Just to exert more pressure on voters to vote remain.
Hopefully they will stay resilient and ignore these continued threats, stay strong, vote out and with luck we will be out the EEC ON 24th June 2016
Hey Hey Hey
And good riddance
We could not leave on 24 June
If that is what you think you are very seriously mistaken
Amused, my generation pop. I have an image of the navy-suited political classes jigging in merriment to the tune. Market volatility – no surprise there, the vultures are out for a meal. Red tops come out for Exit – no surprise there, “nothing to do with Rupert Murdoch” say Kavanagh. Leave and Remain make empty promises and unsustainable claims – no surprise there, from our political Masters of chaos. Britain today – the buffoons are out of control.
My generation too….
Democracy + Sovereignty? “Here in Anglo-Britain we do not have a state that is answerable to us, the people. We have governments that can be ejected in elections and to that important if blunt extent are answerable. But the state that they run when elected is the most highly centralised of the western world and its powers are not defined or limited by a constitution that places sovereignty in the hands of the people.” Anthony Barnett – founder of ‘openDemocracy’ (https://www.opendemocracy.net/uk/anthony-barnett/let-s-take-control-brexit-and-sovereignty-brexit).
You’re right John D, the UK is in just as much need of democratic reform than the EU. The change has to start somewhere, so why not here?
Keith
Stop – being reactionary (angry) and THINK about it a little more. Please.
Simon
You may well regret your decision to abstain. Either way – please vote.
Whatever your decision, then stick by it and then take part in working through the problems and challenges it will create.
Because either way, there will be challenges. That’s the Hobson’s choice we are faced with in my view.
“Stop — being reactionary (angry) and THINK about it a little more. Please.”
I have been THINKING about it for many months, while reading this blog and many others, discussing with friends and acqaintences, etc.
I am certainly not angry, but I can’t see the problem with reacting to something that makes no sense to me or deserves a comment as a balance to the debate?
If this upsets you, then I do apologise!
I will vote-PSR but I will not be putting an ‘X’ anywhere just a little note that the ‘debate’ is a bogus one and nothing to do with underlying reality and protest the lack of abstention as POSITIVE choice.
I believe Simon it is your democratic right to do whatever you want with your vote. Odd that some people seem to think you should do anything else?
A cheaper pound is good news, for some; make hay while the ‘some’ shines, because the reasons why the pound is cheap include a well-founded reluctance to invest here. Exporters may benefit for now but, in a country dominated by rent-seekers, there is no domestic capital to invest and build on this advantage.
And I would remind you all that in every year that the Pound bought fewer Deutschmarks, German cars gained market share in Britain.
And housing?
Living in a country where the asset bubble collapses because everybody wants to get their money out will not be pleasant; it will be the ‘success’ that smells like ‘solving immigration’ by becoming somewhere no-one wants to go to, not even the desperate and the stupid.
Imagine knowing that house prices are supported by foreigners who can buy a house and a half on a year’s hard-currency wages, and the worthless scrip you’re paid in barely covers rent and wouldn’t buy your flat if you could save it all for twenty years.
And that, in turn, means something for pensions and savings and domestic investment for the export boom we’ll never have.