Friday 21 October 2016

No not the famous Bavarian Motor Works

Although they will certainly be influenced by the final decision of the Brexit negotiations.
Maybe some common ground can be found to accommodate the aspirations of the two
nations Germany's ability to produce cars of quality and the UK's love of owning them .

The rhetoric being used in certain quarters doesn't exactly fill you with confidence but I
think there is more common ground than is being portrayed, maybe common sense can 
prevail after all we are the two nations with more in common, even our religious history
has more in common with a high protestant base in Germany .It must count for something
.It may seem like picking at straws but why not,a trading agreement of sorts is a must
               no matter what your nationality or retribution agenda might be.
   
The common view on the pound now seems to be that this is a political story. no one
quite knows what Brexit is going to look like.A soft Brexit rumor would not have the
desired effect of reducing the value of £ It is in the EU’s interest politically to act strong
and talk hard Brexit. markets are finding it hard to figure out what the cost  of Brexit is
 going to be and what that means for the pound, which is why  the currency is down to
  historic lows.The situation is being supported by the BoE who think the low Pound
will help the economy through increased export activity,and they are expecting an
increase in shop prices to result in an increasing inflation which is still below the Banks
                                                        target of 2% .

With the demise of the value in the £ it is pretty obvious that talk of some form of  trading
agreement is important to stop further devaluation hysteria. the country doesn't need a
 recession which is inevitable if the £ drops anymore.all this is being fuelled by the Rhetoric
being used like 'Hard Brexit' the only ones that are benefiting from this are the tourist industry
their extra contribution will be greatly received,and it creates a lot of happy Chinese
who are able to get a bargain.but it is going to create more hardship down the line if 
it continues As we can't enter into any trade deals with other countries until we are out 
of the EU there doesn't appear to be any real advantage in the low pound at the moment 
and the thought of this situation continuing for a further 2+years and beyond.does not excite

When your living standards are governed by exchange rates the fall in the currency value
has an instant effect on your income and consequent living standards.and it's substantial.
                    It has fallen 20% against the $ since the referendum.
This will eventually filter through to the economy of the UK and affect the living standards
of the majority of people living in the UK there are a few that will benefit from this, including
the happy Chinese tourist.And there are many that won't notice there fall in living standards
but the majority will and they won't have to wait until they go on holiday to find out.

Now  it's not that other currencies have increased in value the $  and the euro are trading
at the same rate along with a majority of  leading currencies, it's only the £ that has fallen
and only on the basis of fear at what might happen when we eventually leave the
the EU in 2+ years time,not tomorrow or the next day but 2+years, until then we will be
trading as normal after the recent fall in the £ no attempt was made to recover the loss
in value  so this lack of action from the Bank of England would appear to be the
    accepted policy from now on.Uncle Sam would have had the printing press out.

It's a pity that the country is having to be penalized in the way it has for deciding not to
become part of a European superstate and all the consequences that involve.
It was obvious from the result of the UK vote to leave the EU that there was no real
disappointment  from the EU they were more vociferous than the UK government
on the fact, Brexit means Brexit we must accept the will of the British people.
The UK has never been 100% behind the idea of the EU never wanting to join the
currency was one instance and the prospect of the superstate and all it entails was the
           last straw.along with it's policy on the free movement of people.

The UK is an Island and it has to limit the influx of people,with a land area of 243,620sq
km and a population of 64+ million compared to France with a land area of
551,501 sq km and a population of 62+Million.the reasoning behind our need to
                         control the influx of people is fairly obvious
                           
The Pound was supported by stronger than expected Q3 GDP data which came in at
0.5%. The UK economy is now 8.2% larger than the pre-crisis peak in Q1 2008. The
 service sector remains strong, growing by 0.8% but construction was weak.(27-10-16.

It turns out the U.K. can still sometimes win in Europe. May’s government 
yesterday prevented its offshore territories from being automatically included 
in a planned EUblacklist It fought off an attempt by a France-led group of 
countries to denounce territories with a zero percent rate of corporation tax as 
potentially “non-cooperative.” That would have collared its islands like Jersey,
Bermuda and the Cayman Islands, which attract hundreds of businesses 
                      because of their generous taxation regimes.

Made in America for Trump ? more protectionism for the US-Asia to suffer
         UK looking for free trade agreements after leaving Europe  










.

.