Apocalyptic stories abound about what an exit would mean for the British economy. On deeper reflection, this does not seem to be the major investment risk. After all, foreign investors know that even if the UK were to leave, they will be paid in sterling. Their property rights and access to the courts, and the terms under which contracts are written in — all the things that make owning UK assets attractive — would also remain in place.
By contrast, Europe would face the departure of its largest export market. The EU is not a monopoly, or even the lowest cost supplier of anything bar French cheese. So a UK exit would make European products even more expensive, and increasingly likely to be substituted by Asian equivalents.
For Europe to sustain it’s current really bad levels of debt. Not get worse these economies need to grow for the next five years. Devoid of financial shocks. No one can guarantee that. On average, Europe suffers a recession every six years.
I doubt even the trillion euro QE can’t sustain that. Which is just debt spending.
The populations of Spain and Italy are going backwards. Portugal is know as a country of emigrants.
It could be that euro-denominated securities, not sterling-denominated ones, turn out to be the weakest link.
The order of Obama’s trip to this side of the world is the most telling.
First he went to Saudi Arabia yes they have the most money and are looking for places to put it. Then he went to the UK. After that he went to Germany to push a trade deal (That the EU has never had). He did not go to the EU. France and Italy were however invited to Germany but not worth a visit. A trade deal made only to stop China from making one. FYI China is Germany’s biggest export location.
Why do we even pretend the EU is a thing?
Things our president says don’t get picked up in the media. I doubt most people even know what the EU is. I bet most people in the EU could not name the president.
The EU has a higher GDP then the US. Not really as important though is it?
London will not never stop being London because
It’s the centre of the UK
We speak English (The important people anyway)
The Airplanes all fly here (Yes we need an new airport)
The Trains all go to London
The Government is here
It’s the same reason NYC is NYC. They don’t have the government but they do have wall street.
To Quote David Cameron:
Of course Britain could make her own way in the world, outside the EU, if we chose to do so. So could any other Member State.
Government ministries would start the ball rolling on a list of things they could not do in the EU.
Economically depends who you are really. Really skilled workers probably not so much. Average and low end will make more money. Things will get cheaper.
The quality of life for everyone would be better.
The cost of living will go down.
Government services will all get better as they won’t be as stretched.
London is not going to have English people back in it. They probably all have some rule about not step foot back in this shit hole. They are probably happier that they have left now. The young who are the most fucked by the EU seem to like it.