What do you think will happen to the UK financially after Brexit?
Will the British Pound remain as powerful a currency as it once was?
Will the British Pound remain as powerful a currency as it once was?
Anonymous
1
yamnnjr
I think one of two things will happen.
They will actually BREXIT, and yes, the pound will devalue for a while, and then inevitably rise right back up to the top of the European currencies where it was.
In fact, it may never actually devalue enough to being one of the lower-value currencies. Britain is pretty well off economically. They re like the second most influential nation in the world, second to the U.S. I just don t see a lot of people leaving Britain just because of BREXIT, especially when as soon as things turn around economically, they could have taken advantage of the falling market to make investments and purchases that will give a huge pay-off once Britain rises back to the top again.
The other potential is that the British government is just as corrupt as the Democrats are and the Republicans are becoming, and they never actually intended to leave the EU regardless of what the people said, just to bide their time till the watchful eye of the people becomes more complacent and they can simply forgo BREXIT without a huge political fallout.
But, they ll do that at tremendous cost to their place in the world because if you didn t hear, the EU is practically kicking them out. To me that means that if Britain wants to stay, they re going to have to essentially bow to whatever the other EU nations want, and that will probably forevermore diminish the role of Britain in the world.
Personally, I think the former is the truth, that they intend to BREXIT, but that they ll start that next year some time. Though, to be honest, I can t say that they aren t as corrupt as the Democrats.
If it were the Democrats and GOP, I m confident that they would never BREXIT because the Democrats don t care what the people want, and the GOP are somehow rendered impotent by the Democrats. I think there s political favors going on, and the Democrats simply know how to play the corruption game, and the GOP are just too corrupt to stop the Democrats, and just not corrupt enough that they can t really figure out how to play the game well.
Anonymous
Short term, it will be pretty terrible. A lot of companies do business with the UK just to get access to the EU, and they will likely move elsewhere. Plus, the UK is the largest beneficiary from the EU, they take out more money than they put in, and have an enormous science budget. All this will be lost when they pull out.
In the long term, they may be able to pull back. But honestly, I don't see them being significantly better. They will end up having to adopt pretty much the same trading policies they had with the EU in order to get back into the world market. They will probably end up being practically the same as before they left, maybe slightly better or slightly worse depending on their leadership. People who act like there will be some massive change either way in the long term probably aren't being very realistic.
?
The UK might just become a strengthened world power again. The USSR's new incarnation is the EU. Brexit is like Estonia becoming a country in 1991.
Not only will the UK - historically one of the strongest countries/empires - grow economically but will face a steep recession in the next couple years.
I do not see many countries leaving the UK trade sphere despite the UK leaving the EU. It's already that strong of a country.
No more bailing out Greece. No edicts from a Brussels politburo. A nation's identity restored.
Scotland might secede and Northern Ireland may join regular Ireland but those areas are economically on far lower magnitudes than Britain.
Economic trade with other countries like the US/CAN/AUS/NZ or even China will help and not harm Britain in the long run. The economy internally will be stronger.
~Aizen
Cymaxtron3
If the EU keeps expanding on members and its economy while applying high taxes for non-members in trade, yes the economy of Britain will suffer a lot. Right now German enterprises (high paying) are exiting Britain leaving only unpemployed people. The panorama is the same that when Thatcher closed the shipyards or when the automobile industry left and only chassis makers survived, unemployed people everywhere.
Many citizens will leave in stampede toward Canada and Australia, trying to level their situation, many of them poors. For the country will be less spending on health, education and pensions to care about and there will be more for less people, but at the same time this brings the problem of a shortage of workers (not mentioning the members of families that decide to leave alone for sending remittances), something that could resolve the importing of foreing workers both low skilled and highly skilled ones, but it has been done with the problems resulting from letting pass some violent people. As a result, excluding immigration policies will arise.
Britain could use her resource of forcing the Commonwealth members to buy only British products, but i think it's too late right now given the advanced stage of globalization. Only internal growing of its population could save the economyby creating a medium size internal market but even that will take some time, at least 15 years when the new British citizens become serious consumers, but it would be a good beginning given that babies demand many attentions...and products. But again, this would be nothing if the door is still open to criminals coming from abroad.
It's population has to dedicate more to the industry instead of the finantial sector to see more money flowing, for that, the government hast to start a massive campaign of motivation to students for choosing scientific careers, otherwise the island will be lost as a wealthy nation. A quick relief for leveling the situation has to focus on reducing the real estate prices, specially in hostelry. A room costing right now $300 for night should lower to $100. Clothes should radically minimize their prices so the French and other Europeans flock there to let millions to save the situation until the economy can be stabilized. Argentina overcame the 2000s crisis like this, Spain, after her real estate bubble burst and some other countries. Some leaving the crisis faster than others...
My best wishes for Britain.