More downside for the Pound. This is of course great news for the UK as a whole:
- Our debt is in Sterling, so we become less indebted in real terms as the Pound falls.
- Inflation is needed to regularise our economy after the QE inspired mess.
- Our exports will flourish as they become more competitive.
- Foreign Direct Investment will increase as it buys more for less.
- Tourism will increase as the UK becomes cheaper to visit.
- As our relative wages fall, immigration may drop slightly as we become more competitive in this respect.
The only negative is travelling abroad is more expensive for us Brits, but staycations are also a net benefit to the economy in any event.
So none then.
Anyhow, the cause of this is the Prime Minister and Chancellor making noises about negotiating from a Hard Brexit stance and then adding in that we can make threats also. Turning the UK into a massive offshore tax haven (which of course we are already....) for one.
This added to ND's post of Friday where Michel Barnier has woken up to the threat of a UK exit causing the cost of capital to rise for European firms and we are in a much better place.
Remoaners are going to go full steam now, as final defeat for them hoves into view. For the majority though, at last the phony war is ending and the meat of the discussions can happen.
Putting it about like this is refreshing for the Brexiteers; Europe holds lots of the cards and so we will need to be strong in trying to negotiate any deal at all with them.
And that is before we get to Trump and his over-friendliness.....