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Brexit discussion thread XIV (Please read OP before posting)

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  • Registered Users Posts: 3,359 ✭✭✭peter kern


    that sounds good if one only looks at one parameter , but ommits that also the euro, for the first time ever i think ,fell bellow parity to the dollar in the last few weeks. and that apart in 2018 where the pound was a good bit stronger than the euro , the pound and euro are relatively syscronised since the brexit referendum.



  • Registered Users Posts: 26,511 ✭✭✭✭Peregrinus


    That's kind of the point. Both the euro and the pound are down against the dollar to a broadly similar extent, but this has affected the LSE more badly than the Paris Bourse. Why? Because confidence in the UK domestic market is very low, so the prospects for companies that generate the bulk of their earnings in GBP are poor, relative to prospects for companies that generate most of their earnings in EUR. This is reflected in stock prices, and so in market capitalisation.

    So, the question "is the relative decline of the LSE due to Brexit?" can be restated as "is the market's lack of confidence in the UK due to Brexit?". And I think the answer is probably yes, for three reasons. First, Brexit is inherently a permanent drag on the UK economy, and there is as yet no sign of the UK government recognising this and making appropriate policy adjustments; since 2016 the UK has consistently underperformed comparators that it used to match, and the market expects this to continue for the foreseeable future. Secondly, Brexit has caused a crisis of political leadership in the UK; five PMs in six years and, while the jury is still out on the present man, his three predecessors have been among the worst PMs of all time. Thirdly, the UK's governance system was previously assumed to be robust enough to filter out madness like the Truss experiment before it was actually implemented; leaving aside the enduring costs of the Truss experiment itself, the market now has to assign a non-negligible chance that such a thing, having happened once, could happen again. And Truss, of course, would never have been PM but for Brexit so this too is, at least indirectly, down to Brexit. Plus some commentators think that the hollowing-out of the UK's capacity for good governance is itself an artefact of the political attitudes that drive Brexit.

    It all implies a fairly dismal judgment about Brexit. On the cheerful side, the phenomenon we are looking at - Paris Bourse market cap exceeds LSE market cap - is, in itself, pretty harmless. It has perhaps symbolic significance for a movement that sees value in things like blue passports and crowns on pint glasses, and it does call attention to the real economic and political phenomena I have mentioned, but in itself it has no intrinsic economic impact on UK residents in the way that high inflation rates or interests rates would have.



  • Registered Users Posts: 26,511 ✭✭✭✭Peregrinus


    And, interestingly, the person he blames for this is Crawford Falconer, the UK's Chief Trade Negotiator and Interim Permanent Secretary of the Dept of International Trade. You may remember Crawford as the New Zealander that the May government headhunted in 2017, to great Brexiter acclaim, to bring high-level experience of international trade negotiations (he had done this job for New Zealand) and a proper Brexity attitude (he was involved with the Legatum Institute) to the implementation of Brexit.

    And Eustice himself is a longstanding Brexiter — he came into the Tories via UKIP.

    Eustice's complaint, specifically, is that the UK publicly committed itself to an early trade deal with Australia, and this gave the Australians a strong hand — they knew if they stood their ground the UK would cave to avoid missing their self-imposed deadline. And Crawford duly caved.

    But, of course, the need for a quick deal was itself driven by Brexiters — they were desperate to secure a trade deal with a country that the EU didn't already have a trade deal with, so they could point to it as a plausible "Brexit benefit". That was the reason for the breakneck speed and the self-imposed deadline. Yes, the Australians took advantage of this. They had previously said, in as many words, that they would, so nobody should have been in the least surprised.

    In short, what we have here is a Brexiter complaining about the implementation of Brexit by other Brexiters on terms driven by the needs of the Brexit movement itself.

    This comes just days after Brexiter Lord Wolfson, CEO of Marks and Spencer, whose business is badly affected by Brexit, complained that real-world Brexit is "not the Brexit I voted for", while noted Brexiter Theresa Villiers objects to the pet project of noted Brexiter Jacob Rees-Mogg to scrap all UK laws derived from the EU as "unworkable and unnecessary".

    Brexiters criticising Brexit as implemented by other Brexiters. Expect a lot more of this as they all try to distance themselves from the harm they have done

    Post edited by Peregrinus on


  • Registered Users Posts: 26,511 ✭✭✭✭Peregrinus



    Two nitpicks: Euro falling below parity with the dollar is not for the first time ever, but it is for the first time in about twenty years.

    And I don't think it's quite correct to say that "the pound and the euro are relatively synchronised since the brexit referendum". Average GBP:EUR rate for May 2016, the month before the referendum, was 1.29. GBP entered a steady decline for several months after the referendum and by January 2017 the average rate for the month was 1.16. Since then the rate has moved more or less in the 1.10-1.20 range; average monthly rate for September 2022 was 1.16. Today it's 1.14. So the correct position seems to be that the pound took a dive relative to the euro in the months after the referendum, stabilised at a lower level, and the two have been relatively synchronised since then. But the pound has never regained the ground it lost relative to tye euro in the months after the Brexit referendum.

    Post edited by Peregrinus on


  • Registered Users Posts: 3,359 ✭✭✭peter kern


    yes i saw that it had fallen bellow parity when it was still a virtual currency, so it should say it fell the first time bellow parity since it became a real currency. so point taken.

    i would argue that the pound had an unusual high point in 2016 and if we were to take the average since 2008 after the financial crises when the pound took a real dive , we could say the pound has not really lost against the euro since 2008.

    and since we are at 2008 it shoes the the uk have struggled a lot with market confidence before brexit . what iam trying to say here there was a lot of problems the uk had before brexit that have not changed after brexit, and i dont think we can use them as brexit arguments. what i am saying would cconsumer confidence in the uk higher if they were still in the eu. maybe a bit better but not good either i guess

    and neither would i think that uk gov is more unstable than the quoted italy. the only pm that really fell over brexit was theresa may . boris as bad as he was had partygate, and lizz would likely have tried this if uk was still in eu.

    so of course i think we can fairly clearly say brexit is having an negative impact and the 4 percent projection was likely quite good . but we have to be careful what is brexit impact and what would have happened if britain had stayed in the eu. i guess its fair to say it would not have prospered either .

    or in other words the eu is only useful for countries that want to make it work , and a well govered country could still do better outside the eu than a badly governed country inside the eu . badly governed outside the eu is of course the worst case scenario.



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  • Registered Users Posts: 245 ✭✭I told ya


    Came across a clip from last week's BBCQT. Lord Deben, a Tory Peer, blamed Brexit and leaving the EU for a lot of the problems facing the UK. The surprising bit was the reaction of the audience, cheering and clapping. Two years ago I would have said that there would have been booing, etc.


    Wondering, are we seeing the start of the UK public expressing their wish to re-join the EU/SM/CU or the EEA? Or some sort of realisation that Brexit was not a good move?

    If the UK gov is planning to attempt a form of reconciliation with the EU, then I can see the DUP/TUV coming under pressure to sign up to the NIP.



  • Registered Users Posts: 15,636 ✭✭✭✭Leroy42


    Not sure about any preference to rejoin, I think that is an argument that is many years away from being won.

    What I do think is happening is people are, rightly, questioning just when these glorious benefits are going to materialise. It all sounds great talking up the supposed benefits of Brexit, but people want to see it for themselves. Nurses can't get a payrise, food bank usage is massively up, big projects like HS2 are being postponed.

    After a while, people don't care about why the problems exist, only that the MP's should be doing something to solve them.

    And when the likes of Hunt and Sunak cannot even bring themselves to admit that Brexit is causing problems people see that as they are more concerned with shifting the blame than actually dealing with the consequences.

    The last GE in 2019 was won, and lost, on getting Brexit done. The next election will be about what is in it for me. The Tories are going to have a really tough time trying to convince anyone that they have the answers.



  • Registered Users Posts: 26,511 ✭✭✭✭Peregrinus


    The euro was below parity with the dollar from Feb 2000 to Aug 2002, when it was very much a real currency, not a virtual currency.

    The pound lost hugely against the euro in the aftermath of the 2008 crisis, reaching a low in January 2009. It then underwent a slow recovery, and was back to its mid-2008 level by late 2014. It then spiked and for most of 2105 it was above its 2008 level. before beginning a decline which was accelerated and intensified after the brexit referendum in mid 2016. It has never really recovered from that second decline.

    Brexit or no Brexit, Johnson would have been a dreadful PM, and so would Truss, but the point is that, but for Brexit, neither would ever have been PM at all, even if a vacancy had arisen, as presumably it would at some point. Brexit has created the conditions in which the UK has had a succession of truly awful PMs; we can't pretend this isn't a consequence of Brexit.

    Obviously we can't say with certainty how the UK would have faired if it had not brexited; historical what-ifs are always speculative. But the 4% projection that you mention was the government's own projection that Brexit would reduce the UK's GDP by four per cent, compared with what it would have been if the UK had not Brexited. And synthetic modelling tends to confirm that this project has been closely born out, so far.

    I suppose we might hypothesis that the political tendencies that characterise the Brexit movement - a rejection of evidence, simplism, populism, ignorantism - might still have affected the UK even if they hadn't succeeded in delivering Brexit and, if so, the UK would have been adversely affected to at least some extent even without actual Brexit. This is probably true, but all we are really saying here is that, if the Brexit movement had been less strong, it might have done less harm. That's not really a ringing defence of Brexit.



  • Registered Users Posts: 18,661 ✭✭✭✭Strazdas


    Plus we've seen the likes of Farage and Banks attacking Sunak as an "elitist" and a "globalist" - despite the fact he was a committed Brexiteer in 2016. The whole movement is an absurdity.



  • Registered Users Posts: 26,090 ✭✭✭✭breezy1985


    And the fact Banks is loaded and Farage was one of the "City of London elite bankers"

    Have no right to be calling anyone an elitist.



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  • Registered Users Posts: 5,301 ✭✭✭Snickers Man


    I couldn't help referring back to what the Daily Telegraph said about this Australian deal at the time, once you got past their triumphant headlines the main body of the text reporting on that agreement was pretty damning.

    Here's what I posted back then. Ah, nostalgia!!!

    https://www.boards.ie/discussion/comment/117444245/#Comment_117444245



  • Registered Users Posts: 26,090 ✭✭✭✭breezy1985


    Anyone know which Brexit discussion thread the vote took place during ?

    Oldest I found is XI in 2019



  • Posts: 5,121 ✭✭✭ [Deleted User]




  • Registered Users Posts: 8,067 ✭✭✭joeguevara


    But apart from loss of a financial services industry, loss of manufacturing industry, agriculture industry, fishing industry, reduced competitiveness, loss of wages, poor trade agreements, loss of its largest market, no trade agreements…what are the negative impacts of Brexit?


    well let’s hear from the Bank of England confirm how Brexit has ruined the British economy

    https://youtu.be/9YcIcpQWK6M



  • Registered Users Posts: 26,090 ✭✭✭✭breezy1985


    Thanks for that.

    Results night starts page 26. Its mad reading through and reliving it. Tis also gas seeing the few "EU is finished" posters and the ones playing down NI issues.

    It also took us at least 12 Brexit threads before "Brexit got done"



  • Registered Users Posts: 18,661 ✭✭✭✭Strazdas


    "EU is finished" came straight from their messiah Nigel Farage (an unemployed charlatan reduced to posting crank messages on social media these days).

    Latest opinion poll - the fall from grace of the Brexit movement is a sight to behold:




  • Registered Users Posts: 26,511 ✭✭✭✭Peregrinus


    A few points about the right/wrong to leave poll:

    This question has been regularly polled by YouGov since the UK left at the start of 2020, going on for 3 years ago.

    Initially “right to leave” consistently led, but in March-May 2021 opinions crossed over, and since early June “wrong to leave” has consistently been ahead of “right to leave”.

    “Wrong to leave” first hit 50% in November 2021. It hasn’t fallen below 50% at any time since May 2022. 

    “Don’t knows” have been a pretty stable 10-14% all along. It doesn’t appear that the shift in opinion is a result of the previously undecided making up their minds. Rather, people who were of one opinion have changed to the other.

    Other dismal findings for the government: 23% think the government is handling Brexit well. This is the lowest at any time since Brexit. 65% think the government is handling it badly; this is the highest. Again, the don’t knows (12%) have barely moved.

    On the other hand, the fact that a substantial majority think Brexit was a mistake and that the government is handling it badly does not mean that a similar majority wants another referendum or that, if there were to be another referendum, they would vote to rejoin. People might think, for instance, that it was a mistake to leave but that it would not be desirable to rejoin if rejoining meant, e.g., accepting the euro. 

    Nevertheless it is striking that that a persistent, substantial and growing majority think Brexit was a mistake, but neither of the major parties are willing to be critical of Brexit, or to acknowledge any links between Brexit and the UK’s current woes. And the result of this is that, on the question “which political party would be best at handling Brexit?”, 21% plump for the Tories and 19% for Labour. Those figures are dwarfed by the 46% who answer either “none” (27%) or “don’t know” (19%). It looks from this as if there should be a significant reward available to the party that will engage honestly with Brexit and reflect the concerns of the majority about it, but at the moment neither of the majors wants to claim that reward.

    Post edited by Peregrinus on


  • Registered Users Posts: 4,705 ✭✭✭serfboard


    There is definitely much more open talk now in the UK about "The Brexit Effect", with it being spoken about by various commentators on television shows as it becomes more and more obvious. Even today, while watching coverage on Sky News of the UK Budget, a commentator from the Institute for Fiscal Studies (a "highly transparent"ly-funded think tank) said that while some of the effects in the UK were shared globally or on a European basis, there is also the effect of Brexit. The conspriacy of silence around the issue is breaking down.

    Having said that, I was wondering why the Lib Dems aren't making more hay considering their position so I had a look on Wikipedia:

    "Under [Ed] Davey, the Liberal Democrats seized the traditional Conservative constituency of Chesham and Amersham in a by-election in which Sarah Green overturned a 16,000 majority in June 2021 and then repeated a similar feat in North Shropshire in December 2021 where Helen Morgan overturned a 23,000 majority. In the 2022 local elections, the Liberal Democrats gained councillors in all countries of Great Britain, with the largest gain of any party in England with 193 new councillors. One month later, the Liberal Democrats contested and won the Tiverton and Honiton by-election with its candidate Richard Foord, overturning a majority of over 24,000 and breaking the record for the biggest overturning of a majority in British by-election history."



  • Registered Users Posts: 18,661 ✭✭✭✭Strazdas


    An extraordinary aspect of the Brexit disaster is that the party which caused it and enacted it and the media who were the cheerleaders for it are all still in position. So as 'elephants in the room' go, this is a gigantic one - they can't bring themselves to admit the scale of the disaster, because this would mean they (the Tories and their numerous right wing press pals and the billionaire newspaper owners) having to admit they caused the whole thing and did huge damage to their country.



  • Moderators, Category Moderators, Science, Health & Environment Moderators, Social & Fun Moderators, Society & Culture Moderators Posts: 38,779 CMod ✭✭✭✭ancapailldorcha


    The truly perverse thing is that in the grand scheme of things, this will make no difference whatsoever.

    It's just another excuse to siphon money from working people so that oligarchs, millionaires, landlords and other Tory types get out of paying their share once again.

    The foreigner residing among you must be treated as your native-born. Love them as yourself, for you were foreigners in Egypt. I am the LORD your God.

    Leviticus 19:34



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  • Moderators, Recreation & Hobbies Moderators, Science, Health & Environment Moderators, Technology & Internet Moderators Posts: 91,668 Mod ✭✭✭✭Capt'n Midnight


    Office for Budget Responsibility (the one bypassed for the "not a budget" ) have a grim forecast ahead of the next election.

    Rising prices erode real wages and reduce living standards by 7 per cent in total over the two financial years to 2023-24 (wiping out the previous eight years’ growth), despite over £100 billion of additional government support. The squeeze on real incomes, rise in interest rates, and fall in house prices all weigh on consumption and investment, tipping the economy into a recession lasting just over a year from the third quarter of 2022, with a peak-to-trough fall in GDP of 2 per cent. Unemployment rises by 505,000 from 3.5 per cent to peak at 4.9 per cent in the third quarter of 2024.

    ...

    The tax burden rises from 33.1 per cent of GDP in 2019-20 to 37.1 per cent of GDP at the forecast horizon, 1.0 percentage point higher than forecast in March and its highest sustained level since the Second World War.

    There'll probably be a shortage of unicorns frolicking on sunny uplands too. Wasn't Brexit something, something low tax economy ?



  • Registered Users Posts: 26,090 ✭✭✭✭breezy1985


    Can't wait till the next election and we all once again get gaslit about how the Tories are the party of "low tax and a safe pair of hands with the economy"



  • Moderators, Category Moderators, Science, Health & Environment Moderators, Social & Fun Moderators, Society & Culture Moderators Posts: 38,779 CMod ✭✭✭✭ancapailldorcha


    Gaslighting only works if it's plausible. Saying that a Gerbil and a Hamster are the same animal is wrong but not as wrong as saying that a Gerbil and a Combine Harvester are the same thing.

    The foreigner residing among you must be treated as your native-born. Love them as yourself, for you were foreigners in Egypt. I am the LORD your God.

    Leviticus 19:34



  • Registered Users Posts: 26,090 ✭✭✭✭breezy1985


    I doubt it will be enough this time but it will still be Labour asked all the tough questions on the economy and constantly have to prove they can fund their manifesto.



  • Registered Users Posts: 18,661 ✭✭✭✭Strazdas


    Brexit taking a hammering on BBC Question Time this evening and the audience applauding every attack on it.

    Looks like all the bluster and denials from the disciples is not cutting through at all.



  • Registered Users Posts: 22,423 ✭✭✭✭Akrasia




  • Registered Users Posts: 22,423 ✭✭✭✭Akrasia


    The core brexiter vote probably can't define either a gerbil or a combine harvester. its all about the feelings



  • Moderators, Category Moderators, Science, Health & Environment Moderators, Social & Fun Moderators, Society & Culture Moderators Posts: 38,779 CMod ✭✭✭✭ancapailldorcha


    That's the thing though. The core Brexiter vote has been withering for some time now. Look at how open people are about admitting what a mistake it was. It's still too late, mind.

    Next election will be interesting. We'll be told that Labour wants to balloon the public debt and hike taxes when the Tories tried the former and then had to do the latter to fix their mistake.

    The foreigner residing among you must be treated as your native-born. Love them as yourself, for you were foreigners in Egypt. I am the LORD your God.

    Leviticus 19:34



  • Registered Users Posts: 1,618 ✭✭✭rock22



    @ancapailldorcha wrote "Next election will be interesting. We'll be told that Labour wants to balloon the public debt and hike taxes when the Tories tried the former and then had to do the latter to fix their mistake."

    i have said here before that there is an opportunity for a political party to call out the nonsense of Brexit. But it will not be the Labour party under Keir Starmer.

    If you check out Labours website you will see that Keir Starmer intends to make Brexit work. I quote

    "Setting out Britain’s relationship with Europe under a Labour government, Starmer will say: “With Labour, Britain will not go back into the EU. We will not be joining the single market. We will not be joining a customs union.” He will add: “We will not return to freedom of movement to create short term fixes. Instead we will invest in our people and our places, and deliver on the promise our country has.”

    It is as likely that a new Tory leader will emerge to do a U-Turn on Brexit.



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  • Moderators, Category Moderators, Science, Health & Environment Moderators, Social & Fun Moderators, Society & Culture Moderators Posts: 38,779 CMod ✭✭✭✭ancapailldorcha


    Where is the room? Show me the room. People may be realising that Brexit was a monumentally stupid idea but that's a long way short of wanting to rerun the referendum campaign and then spend thousands of hours glued to screens watching and debating any new membership criteria the EU may insist upon.

    Starmer knows this. He also knows his predecessor attained the worst result since the 1930's by promising another referendum.

    FPTP chokes anyone outside the big two. The Lib Dems have barely budged in their number of seats in the House of Commons.

    The foreigner residing among you must be treated as your native-born. Love them as yourself, for you were foreigners in Egypt. I am the LORD your God.

    Leviticus 19:34



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