Wednesday, 5 October 2016

Who's saying "Brexit means trashing the economy"?

USD:GBP exchange rate through 2016
As a eurosceptic, it would be great if there were to be a new arrangement for the UK with the EU that made sense both politically and economically. This could be inside or outside the EU. But the new arrangement must achieve both objectives.

We had a massive devaluation in sterling against major currencies such as the US dollar and Euro immediately after the surprise Brexit vote in June. There was a further slide after Brexit announcements at the Tory conference.  Hardly a ringing endorsement of the UK economy by the professionals. Nor had such a hefty devaluation been suggested as a serious answer to the UK's economic issues.

Looking at the transition issues of Brexit and the likely long-term result, I would agree with what the currency market seems to be saying. "Brexit means trashing the economy."

Unless the Government can quickly pull a rabbit out of the hat, the country needs to think again. Businesses should be planning for "No Brexit" as much as any other shade.

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