Quote:
Originally Posted by tweetiepooh
I have no problem in people "betting" on things doing well. Buying shares or whatever because you want them to appreciate. That's doing what it was intended to do, providing capital to allow something to be developed/marketed/grow and getting rewarded for it with dividends and increased value to holdings. I object to the opposite.
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It isn't betting on Sterling being weak that's dragged it down. There is capital flight, investors see the UK as a materially worse place to put their money, and Sterling seems to be
losing its status as a world reserve currency. This is largely at least due to the Brexit vote and the position adopted by the government.
Can you blame someone who invested in UK debt via US Dollars for pulling their money with this kind of performance?
Without that status we're left on our own in the big wide world, we can
no longer depend on the 'kindness of strangers' to finance our deficits.
Regarding today's inflation report, we are
certainly due an inflation spike due to Brexit but if it's influenced this month's results it's the very early stages.
Finance houses are increasingly activating contingency plans. What effects these will have on jobs and taxes in the UK is unclear.
All may end well but for now and for the foreseeable the
UK's economic position is materially worse as a result of the vote. That's a simple statement of fact. Some people were prepared for this and accept it as the price to pay for getting what they consider sovereignty back, the majority of the country however have no interest in becoming poorer due to this. 48.1% of them didn't want it anyway,
another couple of % have now changed their minds, and of those that still would vote leave at least a quarter did so thinking it wouldn't affect them financially, and were wrong. Those who are not of pensionable age and on welfare, a group that voted heavily leave, will see the welfare freeze impact them more this year and even more next as it won't come close to keeping up with inflation, as will those on in-work welfare, another group that voted overwhelmingly to leave.
