It looks like you're using an Ad Blocker.

Please white-list or disable AboveTopSecret.com in your ad-blocking tool.

Thank you.

 

Some features of ATS will be disabled while you continue to use an ad-blocker.

 

Brexit reports reveal ridiculousness of "the system."

page: 1
9

log in

join
share:

posted on Jun, 24 2016 @ 06:46 PM
link   
A fascinating issue sprung up with the media's reports of the Brexit. Notice how stringently all of the negative reports have focused on the value of the British Pound.
money.cnn.com...

Economists had been warning for months that if the U.K. referendum resulted in a vote for a British exit (Brexit) from the EU, that would do lasting damage to the British economy.

www.bbc.com...

The pound's dramatic fall started overnight as the outcome of the referendum became clear. At one stage, it hit $1.3236, a fall of more than 10%.

time.com...

British voters blindly jumped headfirst into the unknown Thursday by taking the unprecedented and historic step to break from the European Union. Now the British pound is paying the price.


Sounds bad, doesn't it? Seems like a strong Pound, one with a higher value to the various market currencies would be a Godsend, right?

But there's this:
www.investopedia.com...

The strong U.S. dollar has been bad news for most investors. This is unfortunate because the appreciating dollar has been easy to detect for well over a year.


www.businessinsider.com.au...

All other things equal, when a currency rises against its trading partners or competitors, the sectors of the economy exposed to that rise lose competitiveness, partly as its exports become more expensive. When a currency falls relative to trading partners and competitors local businesses who either export or compete with imports become more competitive.


www.forexnews.com...

For the most part, governments want to have a weak currency to help encourage their exports. The weaker a currency is, the more attractive that countries’ goods and services appear to others.


Don't be tricked, Brits... your vote yesterday can ultimately lead to a very powerful growth inside the UK manufacturing and export sectors. You just made the British economy move into a position to grow like wildfire once the initial pangs of panic have subsided. The truth of the matter is this, strong currency, weak currency, it's all a big ass game and what's good for you may not be good for the rest of the world, but you can be certain the brush it gets painted with will likely be selected based on what the overall West wants rather than what's best for the individual nations and their citizens.

From an earlier link:

But the value of the pound is important, and here’s why. A stronger dollar against major currencies like the pound and euro makes U.S. exports less competitive, thereby limiting gross domestic product, and payroll, growth. Over the longer term, the U.S. now will have a harder time pushing for its interests in Europe, from trade deals to containing Russia. What’s more, savers who had hoped the Federal Reserve would raise short-term interest rates anytime soon should be disappointed.


Your vote is being portrayed as a bad thing, as having left the world "reeling," and as being self-destructive to the UK not based on any truths of your own situation, but rather because your Brexit tweaked the nose of the western globalists. Ironically, the slipping of currency values in Europe and Asia is a good thing for the average American citizen, too. The stronger the dollar, the cheaper the imports. If your new leaders play this correctly, the UK can and will witness the same type of economic and middle class growth as the US did coming out of WWII, when the dollar wasn't as strong and the USA was primarily an exporting nation.




posted on Jun, 24 2016 @ 06:49 PM
link   
So in the US we WANT negative interest rates?

Makes sense. More buying power for other currencies means a more competitive labor market as well.



posted on Jun, 24 2016 @ 06:55 PM
link   
a reply to: burdman30ott6

This would be all well and fine if the UK was similar to China and exported a ton of goods, but they don't, do they?

Those that sell a lot on the world market want to keep currency low. But that won't help them to buy foreign commodities. It will hurt.

Have a look at the current UK trade deficit. www.tradingeconomics.com...

Until they are in surplus position, your argument is pointless.
edit on 24-6-2016 by nightbringr because: (no reason given)



posted on Jun, 24 2016 @ 06:58 PM
link   
Can't the bankers stop buying their debt?

How does the IMF okay into this



posted on Jun, 24 2016 @ 06:58 PM
link   

originally posted by: onequestion
So in the US we WANT negative interest rates?

Makes sense. More buying power for other currencies means a more competitive labor market as well.



The problem is and always has been that it is impossible to have a prosperous economy in absence of strong national protection laws, import tariffs, strong minimum wage requirements, and all the various self-restrictive regulations the US operates with. These issues create a massive disconnect between what's best for the People (low inflation) and what's best for investors and multinationals (robust inflation.) This is because investors own stock, not set dollar values, and multinationals own assets, not set dollar values. If I buy an acre of land for $100 and 10 years later inflation has run rampant and that land will now sell for $1,000, my investment has yielded dividends. With workers, however, if I earn $100 and stash it away, in the same 10 years it is still worth only $100, but it's buying power has lost 90% of it's value.

The ONLY wise route economically is to shun globalism, reinstate import tariffs, and rebuild the value of your currency. The UK has been handed a gift here because they have more options with a weak Pound to attract investors... but if they're smart, as soon as they get those investors on board, they'll start building their manufacturing sector to the moon and pass tariffs, strong tariffs that make buying a Japanese car or America airplane financially disadvantageous for Brits, but make exporting British made cars and planes financially brilliant to all parties involved, especially the UK workers.



posted on Jun, 24 2016 @ 07:00 PM
link   

originally posted by: nightbringr
a reply to: burdman30ott6

This would be all well and fine if the UK was similar to China and exported a ton of goods, but they don't, do they?

Those that sell a lot on the world market want to keep currency low. But that won't help them to buy foreign commodities. It will hurt.

Have a look at the current UK trade deficit. www.tradingeconomics.com...

Until they are in surplus position, your argument is pointless.


There's no faster way to get into a surplus than by becoming the more attractive option. That trade gap was growing before the Brexit even became a thing...

Look, I'm not suggesting this will be painless for the British People, but if the UK leaders play things correctly, what comes out of it will be worth the pain and then some.



posted on Jun, 24 2016 @ 07:02 PM
link   

originally posted by: burdman30ott6

originally posted by: nightbringr
a reply to: burdman30ott6

This would be all well and fine if the UK was similar to China and exported a ton of goods, but they don't, do they?

Those that sell a lot on the world market want to keep currency low. But that won't help them to buy foreign commodities. It will hurt.

Have a look at the current UK trade deficit. www.tradingeconomics.com...

Until they are in surplus position, your argument is pointless.


There's no faster way to get into a surplus than by becoming the more attractive option. That trade gap was growing before the Brexit even became a thing...

Look, I'm not suggesting this will be painless for the British People, but if the UK leaders play things correctly, what comes out of it will be worth the pain and then some.

I'm not seeing how hurting your buying position on the world market as helping you grow your economy and eventually grow your manufacturing sector.

The correct way to do it of course would be to keep your dollar high, buy what you need to supply your manufacturing sector, revitalize it, and then move towards lowering your dollar once needed commodities are in place to begin manufacturing.

I'm still not seeing manufacturing as being the 'way of the future' though unless we are talking high tech commodities.
edit on 24-6-2016 by nightbringr because: (no reason given)



posted on Jun, 24 2016 @ 07:19 PM
link   
Furthermore, in order for Britain to be a successful manufacturing, net surplus world trade seller, they would need to buy or obtain commodities needed for manufacturing cheaply on the world market, or produced cheaply from local sources.

However, as your pound lowers in value, you lose buying power on the world market. Now, I could be wrong, but I don't believe the UK is large enough now in the post-colonial days to easily and cheaply provide itself with the needed commodities to manufacture cheaply.

Therefore, we move back into the conundrum of 'having to buy cheap on the world market in order to aquire commodities for cheap manufacturing'. I don't see how a country so small, without its old colonial assets that used to provide endless commodities being able to sustain itself as a manufacturing powerhouse.




top topics



 
9

log in

join