@Remainers about bad happening right now.

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    (Original post by Tempest II)
    Tell that to Greece. The Euro is so unpopular over there partly because they can't lower the value of their currency & therefore compete in the export market.
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    Except of course we are not like Greece. We are one of the leading economies who imports more than they export and a strong currency is the sign of a good economy.

    Do you think the brexit lot will complain if the pound goes up?*
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    (Original post by Bornblue)
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    Except of course we are not like Greece. We are one of the leading economies who imports more than they export and a strong currency is the sign of a good economy.

    Do you think the brexit lot will complain if the pound goes up?*
    It'll depend largely on their personal/business interests. Exporters who have no need to import raw materials might not be too pleased should sterling rise back to its pre-Brexit position. Most other individuals & businesses would probably prefer a stronger currency.
    Having a weaker pound does give UK manufacturing chance to complete on the global market &, even should the UK be hit by WTO tariffs on its exports, the drop in sterling will probably offset that. In my opinion the government should try to encourage automated manufacturing while the currency is weak; it may not provide quite so many jobs but it does provide income in the form of taxation & would improve the trade deficit.

    Another side effect of the weaker pound is an increase in tourism, both from foreign travellers who can now afford to visit and a possible increase in domestic tourism if, due to the Euro & Dollar being rather high at the moment, they can't afford to travel to Europe or the USA. Both of these factors will ensure that demand for sterling increases in the longer term.
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    (Original post by Bornblue)
    Rofl, so if the pound starts to climb massively you'll complain and call it a failure?
    Brexit would have succeeded when the pound reaches zero.
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    (Original post by Tempest II)
    It'll depend largely on their personal/business interests. Exporters who have no need to import raw materials might not be too pleased should sterling rise back to its pre-Brexit position. Most other individuals & businesses would probably prefer a stronger currency.
    Having a weaker pound does give UK manufacturing chance to complete on the global market &, even should the UK be hit by WTO tariffs on its exports, the drop in sterling will probably offset that. In my opinion the government should try to encourage automated manufacturing while the currency is weak; it may not provide quite so many jobs but it does provide income in the form of taxation & would improve the trade deficit.

    Another side effect of the weaker pound is an increase in tourism, both from foreign travellers who can now afford to visit and a possible increase in domestic tourism if, due to the Euro & Dollar being rather high at the moment, they can't afford to travel to Europe or the USA. Both of these factors will ensure that demand for sterling increases in the longer term.
    I agricultural sector have seen some increases in exports but I don't think most manufacturing will see much improvement unless there is a high input of intellectual effort like in Rolls Royce aero engines where the cost of materials is only a small part of the cost of the end product.

    But most manufacturing in Britain needs a lot of imported parts and materials like metal, plastic and glass and also need energy to run the factories and transport the raw materials and finished goods. A good example are the car plants in Sunderland. A weak pound will only have a limited effect on prices.

    A weak pound will increase inflation and fuel demand for increased wages which increases prices at the factory gate.

    If Britain's currency continues to be weak, other countries will enact anti dumping legislation like the EU and the US have already done to restrict the importation of steel from China and restrict British exports.

    Tourism is an important industry but tends to be seasonal and concentrated in certain areas so not everyone can benefit.
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    (Original post by Tempest II)
    It'll depend largely on their personal/business interests. Exporters who have no need to import raw materials might not be too pleased should sterling rise back to its pre-Brexit position. Most other individuals & businesses would probably prefer a stronger currency.
    Having a weaker pound does give UK manufacturing chance to complete on the global market &, even should the UK be hit by WTO tariffs on its exports, the drop in sterling will probably offset that. In my opinion the government should try to encourage automated manufacturing while the currency is weak; it may not provide quite so many jobs but it does provide income in the form of taxation & would improve the trade deficit.

    Another side effect of the weaker pound is an increase in tourism, both from foreign travellers who can now afford to visit and a possible increase in domestic tourism if, due to the Euro & Dollar being rather high at the moment, they can't afford to travel to Europe or the USA. Both of these factors will ensure that demand for sterling increases in the longer term.
    This demonstrates sheer opportunism.
    If the pound had surged after Brexit, the Brexit lot would have used that as proof about how Brexit is so great. There's no doubt at all they would have claimed that to be a victory.

    Now the pound falls dramatically and they go 'ah but that's great because the currency was overvalued'.

    You can't win. Whatver happens, the people who voted Brexit will claim it's a victory.

    A strong currency is the sign of a strong economy. As a nation who imports more than they export, we need a strong currency.
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    (Original post by ckfeister)
    Why is strong currency good?
    Cheap imports. And given we import more than export at present, this presents a considerable problem for inflation in an already weak economy with rock bottom interest rates. You could argue that the nature of our economy may well change in favour of exports but if our economy strengthens with the piund we are back to square one.
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    (Original post by ByEeek)
    Cheap imports. And given we import more than export at present, this presents a considerable problem for inflation in an already weak economy with rock bottom interest rates. You could argue that the nature of our economy may well change in favour of exports but if our economy strengthens with the piund we are back to square one.
    Worse off in short term, better off in long run. As wages will end up rising with inflation by the end of it, higher cost = higher prices = more profits it'll end up rebalancing with the currency.
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    (Original post by ckfeister)
    Worse off in short term, better off in long run. As wages will end up rising with inflation by the end of it, higher cost = higher prices = more profits it'll end up rebalancing with the currency.
    Not necessary. Inflation will be driven by higher priced imports from a weak pound. Wages will only rise with increased investment or productivity. In an uncertain economy this is less likely. As inflation rises and wages stagnate people will be worse off in real terms. The only upside I can see is the devaluation of debt inflation has which is good for mortgage holders.
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    (Original post by ByEeek)
    Not necessary. Inflation will be driven by higher priced imports from a weak pound. Wages will only rise with increased investment or productivity. In an uncertain economy this is less likely. As inflation rises and wages stagnate people will be worse off in real terms. The only upside I can see is the devaluation of debt inflation has which is good for mortgage holders.
    Inflation eats up debt, GPD that is. Inflation rises, prices rise, wages rise. Pound has lost about 15% of value on many currencies, meaning its cheaper to pay £20bn investment than 3 months ago, where they might of done 15% less.
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    (Original post by ckfeister)
    1) Pound was overvalued.
    Lmao what does this have to do with anything? The pound was worth more, it's now worth less.
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    (Original post by JordanL_)
    Lmao what does this have to do with anything? The pound was worth more, it's now worth less.
    It was one of the most overvalued currencies in the world, we bring in more than we can afford, thats why we have a trading defict. Go and look it up.
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    We should have never joined the EU it has become far more intrusive since we first joined.
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    (Original post by Calumn123)
    168 Year Pound Low
    Look at the trend pre-referendum hype, it's taken a hit on a couple of occasions since EUref but this has more to do with Project Fear/inevitable uncertainty than the immediate, inherent impact of a Brexit that was announced months ago vs. technically hasn't happened yet. Also, consider the positive impact on our hitherto unsustainably high current account deficit

    How about the 48% rise in Hate crime?
    Source?

    How about alienating our allies in Europe
    Which 'allies' would those be? Some European leaders have long held our country/establishment in contempt, and those that haven't remain open minded/philosophical and are facing a similar groundswell of anti-establishment/EU sentiment

    How about giving a mandate to a Prime Minister that makes Thatcher look moderate?
    Not a fan myself but highest personal approval ratings of any party political leader since Blair :dontknow:
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    Foo got a lot of points spot on in his pre-referendum thread. I would wager a guess at exactly what would happen if Remain won:
    - the European Commission, as part of their plans for ever - greater union, would immediately revoke the deal David Cameron spent hours trying to push, hence making him look a right mong either side of the vote.
    - more people would flock to the UK knowing that lax EU migration policies are on their side; hate crime would rise anyway but foreigners are no longer deterred.
    - one would expect to see the gap rise between the rich and the poor, with the rich now able to afford ivory towers free of the risk of terrorism. More so than in the case of Brexit.
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    (Original post by Tempest II)
    Tell that to Greece. The Euro is so unpopular over there partly because they can't lower the value of their currency & therefore compete in the export market.
    That must be why they voted to keep it...
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    (Original post by Foo.mp3)
    Some European leaders have long held our establishment in contempt,
    Funnily enough so do most of the Leave voters
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    I do believe in brexit! I do! I do!
 
 
 
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