If we vote for Brexit what happens

cells

Will the higher cost inflation not show up or lead to a recession or at least push GDP down as GDP growth is stated after inflation.

I suspect the news and fall in the pound is going to be a trigger for a lot of companies who wanted to raise prices bit weren't. Like the recent news of Unilever putting up prices 10% even on the products made in the uk

cells

CLAPTON wrote: »

borrowing and selling assets is not a sustainable way of living well.
brexit was certainly the trigger that started the selling of sterling.
If you choose to think that this is sustainable then so beit.
Now that the correction has began I would like to see the lower pound until the trade balance becomes positive and we start to be a net acquirer of foreign assets rather than the opposite.
Recent history is stacked with examples of sudden changes that have been triggered by an event or two.


you have previously suggested that borrowing and selling assets is sustainable because the UK has a unique way of creating more assets to sell.

Maybe a case of your confirmation bias?
or maybe you have revised that view.



Many people hold your protectionist views and so you are part of a large crowd although I disagree and favour free trade.
The fact that all your favourite trading partners and your favoured immigrants are all from white christian european countries is just a 'happy' co-incidence. Another confirmation bias maybe?

The UK can sell assets to buy foreign goods.
For instance there is no reason why building and selling 5,000 London properties at £5m a year would not be sustainable long term. That is £25B a year. A lot easier and more productive to do that than to sell cheese to the French and curries to the Indians and tea to China

hildosaver

I'm no economics expert by any means but common sense would suggest that a fall in the value of the pound will lead to an increase in prices, increased inflation, lowering of the value of our wages and an increase in foreign investment which will include even more foreign investment into the London housing market which could increase house prices yet again all while making it even more unaffordable for the local population as their own currency goes down as prices go up.

CLAPTON

cells wrote: »

The UK can sell assets to buy foreign goods.
For instance there is no reason why building and selling 5,000 London properties at £5m a year would not be sustainable long term. That is £25B a year. A lot easier and more productive to do that than to sell cheese to the French and curries to the Indians and tea to China

in general, selling assets means one losses the income that flows from those assets for ever.
It doesn't suggest a good long term strategy.
But taking your usual 1000 year view, I guess it doesn't matter.

setmefree2

Well, the hysteria has reached record levels since the HoC came back from recess that's for sure. For the record how late to the party are Labour? Its a great shame they weren't as passionate way back in May / June.

Anyways, in other news.

Deutsche Bank Sees Yuan Falling 17% as Outflows Accelerate

The yuan will weaken 17 percent over the next two years as government efforts to cool the housing market, easier monetary policy and higher U.S. borrowing costs spur capital outflows, according to Deutsche Bank AG.

http://www.bloomberg.com/news/articles/2016-10-13/deutsche-bank-sees-yuan-falling-17-as-capital-outflows-quicken

setmefree2

hildosaver wrote: »

I'm no economics expert by any means but common sense would suggest that a fall in the value of the pound will lead to an increase in prices, increased inflation, lowering of the value of our wages and an increase in foreign investment

A fall in the pound also means that we have less National Debt in dollar terms.

Every cloud.

hildosaver

setmefree2 wrote: »

A fall in the pound also means that we have less National Debt in dollar terms.

Every cloud.

True enough, it's not all bad news - just mostly bad news.

setmefree2

hildosaver wrote: »

True enough, it's not all bad news - just mostly bad news.

Bad news for some. Good news for others.

My American listed shares are suddenly worth a whole lot more. My British listed shares are suddenly worth a lot more.

Struggling to see the downside at the moment.

CLAPTON

hildosaver wrote: »

I'm no economics expert by any means but common sense would suggest that a fall in the value of the pound will lead to an increase in prices, increased inflation, lowering of the value of our wages and an increase in foreign investment which will include even more foreign investment into the London housing market which could increase house prices yet again all while making it even more unaffordable for the local population as their own currency goes down as prices go up.

It is an interesting point as to whether a fall in the pound will lead to more foreign buying of UK property: I guess we will have to wait and see.

prosaver

Labour’s 170 questions for the Tories on Brexit

methinks, why are labour asking the EU some serious questions?
thinking about it, it would be waste of time ..project fear and all that..
anyways im boycotting all Unilever stuff .. Tesco own brand of marmite taste the same anyway and its cheaper ..har har