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The brits probably need the hard currency given what brexit is doing to your economy. Blame the vote leavers as I’m sure if they were to remain then the brits w
by sys_64738 8y ago
The brits probably need the hard currency given what brexit is doing to your economy. Blame the vote leavers as I’m sure if they were to remain then the brits would have an arms embargo to Saudi by now.
- ptaipale 8y agoIf you look at actual numbers, brexit isn't doing much to the British economy. There's plenty of doomsaying in oral and written communications, but when people and institutions put their actual money in the game, the expectation seems to be that there's going to be life as usual.
- lostlogin 8y agoThough it hasn’t happened yet, and there is no real plan and total disarray. It’s not a reassuring situation.
- ptaipale 8y agoI understand why people are distressed, because the press and other media make a lot of noise about imminent disaster. However, markets price in ahead of time any impacts that they foresee, and we can observe that - Britain's government debt yields, e.g. 2 and 10 year bonds, remain at similar levels to pre Brexit vote, and unlike before 2016, 10-year yields are now lower than US 10-year yields - in currencies, the GBP has remained fairly stable against EUR and USD. I have no doubt that there will be some impact. I did not wish Brexit to happen. But I see some positive signs as well (mainly in that this forces EU leaders to sober up).
- sys_64738 8y agoThe Brit pound devalued by about 20% V the USA dollar. The buoyant export market is propping up the brit pound as it's cheap to export but staples like food imports have risen in price. A recent report indicated that the UK economy would have grown something like 8% more had there been no brexit. Brexit is a disaster.
- ptaipale 8y agoIt devalued instantly after the unexpected voting result, but has since then recovered. Compared to historical shifts over past decades, the impact of Brexit is not very visible on a chart. The falls from 1970 to 1975, or 1980 to 1985, or in 2008, are clearly more dramatic. https://www.poundsterlinglive.com/bank-of-england-spot/historical-spot-exchange-rates/gbp/GBP-to-USD https://www.poundsterlinglive.com/bank-of-england-spot/histo... "Recent reports" are many and contradictory, as usual.
- sys_64738 8y agoRecovered? Nonsense. The historical trend for the pound is to be worth $1.5 whereas it’s trundled along around $1.2 since. Stop making up excuses for the disaster that is brexit. No sane nation would leave the EU.
- jamiegreen 8y agoWhat is Brexit doing to the economy in your view? So far we seem to be experiencing wage growth, GDP growth and low inflation.
- justaaron 8y agoIt's going to cause breadlines, but I disagree with the OP's sentiments expressed here. This money IN is smaller than our war expenses OUT, and it was always so. Arms dealers rip off the nations populations whose governments they sell arms to.
- growlist 8y ago> It's going to cause breadlines Pure assertion.
- lostlogin 8y ago> Pure assertion. It’s also what was asked for. > What is Brexit doing to the economy in your view?
- jamiegreen 8y agoWhy would it cause breadlines? Are people going to stop baking bread?
- tonyedgecombe 8y agoWe did have a block of inflation move through following the devaluation of the pound. It might be low now but the prices are still higher.
- richardknop 8y agoHow is Saudi Arabia providing hard currency? UK has a central bank and a British Pound. Did you mean to say somehow Saudis are providing stability to £ by using their $ from oil sales to prop it up? I don’t think that makes sense.
- sys_64738 8y agoWell, Saudi Arabia pays for the weapons in American dollars. It's not hard.
- richardknop 8y agoWhat percentage of GDP is arms sales to Saudi Arabia? You could then say USD is propped up by Saudis as well since they sell more arms to them than UK, much more actually.
- sys_64738 8y agoI think you need to go research what hard currency means. You’re all over the place with your response.