The day today is historic. The British people voted for a BREXIT! The pound plummeted and Prime minister David Cameron resigns. The British people backed “Brexit” and leave by 52%.
What a day!
The pound plummeted 7 percent on its worst day on record. That
s nearly twice as much as the big drop on 1992s Black Wednesday when the currency dropped 4,1 percent.
But what`s wrong with a weaker pound? A lower pound will help the British exporters which means exporters will be more competitive and sell more not only to european countries but to the rest of the world.
On the other side, prices can start to increase and it will be more expensive for the British people, and that will be a challenge for BOE`s inflation target.
Britain is still in Europe and will always be, but Brexit means they are out of the European Union system. That`s something different.
Prime Minister David Cameron will step down in October, and what the new Prime Minister must do is to negotiate with EU and other european countries and cooperate in EEA (European Free Trade Assosiation).
They are still a country in Europe but what they want is their own sovereignty and more control over their own currency.
Just take a look at Greece. After joining EU they have been in a very difficult situation, and they can’t print their own currency because of the Euro, so only that is making it difficult for them.
This is still early on stage one but you can already see that the pound have turned up again, and that`s how it will be. The turmoil will continue.
I think that BOE have a lot of things to do right now. They will do everything they can to keep the market in balance. This will also spread to the FED and ECB.
For all I know BOE have already added liquidity to the markets and Draghi and ECB will probably follow.
June 23 will be our independence day, Farage said.
JUNE 23, 2016, WILL NEVER BE FORGOTTEN!
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