
Originally Posted by
Gandalf
Why is anything going to deteriorate? Hasn't that already happened in recent years? Being a part of the EU has nothing to do with that. It's about self determination at the end of the day. Why people have such a thing for something that looks like the former Soviet Union is baffling. The short term effect on markets is what it is, but unless you are invested in stocks and shares or have a vested interest in exchange rates, then it shouldn't matter too much.
Miles, you have to remember that these aspects do not live in isolation. A drop in the exchange rate is fine for ex-pats who get paid in foreign currencies as you do, but those who have pensions in the UK are going to be suffering significantly from the drop.
There are also so many commodities that we in the UK are effectively going to be paying more for - we do not produce enough energy, and around 40% is imported from various countries, including France and Russia. The drop in the value of the pound makes all of these imports, and we are talking tens of billions of pounds per year, all proportionally more expensive. Energy costs are one of the largest parts of what people spend every year, and an increase there means that they will have less money to spend on other parts of their lifestyle. That is why I say that it will deteriorate.
Follow this with the increased costs that our businesses are going to be facing in terms of production because of the increased energy costs, and that is going to make things more expensive. It's not only domestic products and services that will be more expensive, but anything imported will cost more, as we will still be buying things at their prices, and more pounds will be required for each unit of currency. Plus any trade deals we negotiate with the EU now will not be on terms as favourable as the ones we had, so the tariffs we pay will be higher too.
Not to mention the fact that I have no trust whatsoever in the wishy washy promises of the leave camp, who said that all of the subsidies and support provided to different industries through the EU will be replicated by the UK government. The repercussions of our farmers not getting the same levels of support could also see our food prices increasing as these costs will be passed on to the consumer, along with the increases that come with the increased costs of energy used in production.
But of course, I am pleased that you are enjoying the greater number of pounds you get when you grace us with your presence in the UK.
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