Isn't a weak currency good for exports?
Yeah, it's common to devalue your currency intentionally. I know Switzerland has done it/does it.
>>78586610
So why is everyone acting like it's an economic catastrophe?
>>78586687
Because "intelligent" liberals crying about how "stupid" people have broken Britain's economy can't grasp the concept.
>>78586454
Tariffs aren't, tho.
>>78586687
leftist and jewish (i.e. banks) propaganda and the 16 year olds fall for it.
nothing new.
>>78586454
Yeah, if your country is not running a trade deficit. http://www.politico.eu/article/post-brexit-ukip-wants-tariff-free-access-to-eu-single-market/
UKIPs, I swer.
>>78586687
dishonest media and social-networking-fueled panic
>>78586687
some (((investors))) bet wrong and lost money, i guess their kabbalah dice didn't work right this week or something. so then they tell the media what to say and in turn loudmouth useful idiots repeat it on their blogs and then finally your dumb fucking neighbhors repeat it because their fee-fees rule their worldview and decision-making process.
in reality investors will have adjusted long before the full consequences of the legal, formal exit take effect. it takes months or years to finally part ways because of the regulatory changes -- governments work with industry to avoid collapse from hasty mistakes.
>>78586888
What, is the EU going to put tariffs on British goods? Sounds like an opportunity for the US and the UK to grow closer.
>>78587230
This. And considering that markets are based almost entirely on speculation
public fear = market fear = market drops
>>78586454
It's really good for exports, which was what the EU used Britain for anyway lol. It'll help cushion Britain's economy until trade deal renegotiations are complete.
>>78586454
What exports?
>>78586454
Machines, engines, pumps: US$63.9 billion (13.9% of total exports)
Gems, precious metals: $53 billion (11.5%)
Vehicles: $50.7 billion (11%)
Pharmaceuticals: $36 billion (7.8%)
Oil: $33.2 billion (7.2%)
Electronic equipment: $29 billion (6.3%)
Aircraft, spacecraft: $18.9 billion (4.1%)
Medical, technical equipment: $18.4 billion (4%)
Organic chemicals: $14 billion (3%)
Plastics: $11.8 billion (2.6%)
UK top exports
>>78587550
Good timing desu
>>78587478
>The United Kingdom is the 9th largest export economy in the world and the 11th most complex economy according to the Economic Complexity Index (ECI). In 2014, the United Kingdom exported $472B and imported $663B, resulting in a negative trade balance of $191B. In 2014 the GDP of the United Kingdom was $2.99T and its GDP per capita was $40.2k.
the ones that are coming, now that the pound has been revalued. it will make more sense for brits to manufacture their own goods in many cases. they now have the potential to become a net exporter, and to save rather than debt-spend themselves into oblivion with the rest of the EU.
>>78587346
Why would you though?
Perfect opportunity to make a few bucks on the deadbeats.
They have no leverage whatsoever.
>euro can't even break a dollar
CRASHING
>>78586687
Because UK's exports rely heavily on having imported tons of intermediary goods to begin with. Military hardware manufacturers, engine manufacturers, breweries, et cetera. If you have to buy raw materials at a premium, your exported goods are going to increase in price to reflect that -- basically nullifying any benefit that could've been derived from a weakened currency.
Also, their financial sector (which contributes to a huge portion of GDP) isn't going to be well off with weakened GBP.
>>78586454
Now show the fluctuations of a year instead of half a day you cuck.
>>78586454
Yup. Plus sterling was massively overvalued so this is more in the way of an adjustment that, in the long term, is advantageous.
The real problem is that next week sterling will go back to its old overvalued level.
>>78586687
Last ditch attempt to make us have another referendum.
They want chaos, they want us to fall apart and have a huge recession so they can say "i told you so".
Fact is FTSE is not even at its lowest point this year.
>>78587952
>their (((financial sector)))
the weakened pound creates the opportunity to make money manufacturing real goods instead of making money by just (((handling debt))). in a country that still has some semblance of capitalism, this means investors and entrepreneurs pivot immediately towards those enterprises, theorizing that they will be slightly more valuable than the value (((banks))) will then have.
>>78587478
These ones.
https://www.uktradeinfo.com/Statistics/OverseasTradeStatistics/Pages/OTS.aspx
Normally in order to devaluate (to boost exports) your currency you must print extra money but when you print extra money you also push inflation. This leads to an increase in exports but also it pushes the prices up.
The Brexit devaluated the Pound Sterling without printing money (without creating inflation). This will keep homeland prices leveled while increasing exports.
This is actually the "wet dream" of many economists, I bet Japan is fucking jealous right now.
>>78587760
So does that mean we get shafted in the short term because we have to pay much more for imports?
>>78587760
I didn't realise they were such a big manufacturer, I was just going on the complexity bit. Good stuff desu.
>>78587952
>If you have to buy raw materials at a premium
But this is exactly what independence will help with. China and India are apparently very interested in expanded talks now, and if China OK's it then we'll sell raw materials to them at eastern rates too.
>>78587778
America is looking for some good trading partners, Chyna is going to collapse soon
>>78587760
as a western country you want to be more information/service heavy than manufacturing heavy because it generates more wealth.
Also I think that Australia, South Africa, New Zealand and maybe Canada are pegged to a certain exchange rate with the pound sterling so in regards of all imports from those countries, nothing will change
The problem here is that Britain's currency and banking system is all corrupt. Remember the index fixing scandal? That type of banking wouldn't work in the EU, since there's no one to really rip off. That's why they wanted to exit the EU.
The markets are going to obviously recover because nothing is going to fucking happen for two years.
>>78589008
As well as it being in everyone's best interest except butthurt remainer's/liberaks. Bankers want to continue making money, Asia/America wants to get in with the UK now that we're available. We're the EU's biggest importer, no way are they going to try and fuck us with a bad deal.
>>78589008
2 years and 4 months, at an absolute minimum. Cameron isn't going to invoke article 50, so it'll be left to his successor.
>>78589443
>>78589515
We can spend the whole two years negotiating free trade with the world.
It will be a smooth transition.
>>78589664
A smooth transition would have been a government who was already prepared for this and had started talking about which things will be negotiated before the polls opened. We may well end up with decent deals with Europe and the rest of the world, but it's choppy waters until any deal is actually signed.
The market shocks were the result of hedge fund mangers betting on remain. They overwhelmingly bet on remain; about 92% of them did and they thought Brexit was inconceivable. Of course when it happened they all panicked and tried to keep from losing money, which has caused the economic shocks.
It's amazing how liberals truly know nothing at all about economics. And the funny thing is a lot of my uni friends (I'm an econ student) voted to leave the EU.
>>78590677
everyone on my facebook is currently an economic expert, kek
>>78586454
Yes, it's very good. In fact Zimbabwe is currently the world's number one exporter of goods because their currency is so weak, and as a result their entire population are trillionaires.
Weak curreny = god tier economy.
>>78586687
It's bad for rich people but good for poor people.
>>78587952
Phamaceuticals, optics and lenses, LCDs, engineering equipment, electronic and electric components: Britain doesn't produce much but what it makes is demanded, niche and high end. Besides, with EU quotas out of the picture they can now revive local manufacturing and fishing trade companies, effectively adopting the Norwegian model.
Cheap currency will boost the export boom, freedom from Brussels regulations will allow to negotiate better trade deals overseas with China, India, Russia and even Europe itself since EU still needs to sell European products on UK market. Actually volatile and deteriorating Eurozone will need Britain much more than before now
>>78586687
Cause they dont export shit
>>78590821
My facebook is exactly the same. Thankfully I have a few redpilled friends, one of whom openly called every leftist who disagreed with Brexit a fascist, showing their true colours.
The tears are delicious. Thankfully though my family (all who voted, I'm a British citizen) voted for Brexit.
>>78589664
2 years isn't long given how slow the EU operated.
Britain would be smart not to invoke article 50.
It's like activating a timebomb and asking the EU to help you before it detonates.
>>78590918
Well, I don't know shit about economics, but I'm pretty sure comparing the economies of a corrupt dictatorship with zero fucking industry and a totally fucked economy, with somewhere like Zimbabwe might not be academically sound.
>>78586454
>Isn't a weak currency good for exports?
Not really. Buy low and sell high is a golden rule for economics. If your currency is weak hopefully you hedged your output.
>>78590677
This.
t. fellow econ student
>>78587201
Gosh the guys barely won the vote and they're already at their knees begging for forgiveness? Have some decency.
>>78586454
>exports
>Britain
>exports
KEK
The only thing Britain has is the London City
>>78586454
Yes. Ask China.
>>78591938
Half of exports to China is Germany. Somehow Germany manages to do well with those EU regulations. But I look with interest at how will Britain regulate its economy without the EU
Also I don't deny that Britain produces what brings most profits, the question is will it be enough
Again, there's this delusion that somehow the EU caused internal problems in Britain. I think the British may feel utterly disappointed when they find out that their problems are caused by their elites, not the EU
