The result is the result, we have to move on, but adverse consequences so far:At present, we have the status quo. Life goes on without any particularly adverse consequences. The UK gets its ducks in a row, finds a new prime minister, appoints a senior team of negotiators for Brexit and hopefully Labour will reorganise to form an effective opposition. Then we trigger Article 50 at the end of the year, and the negotiations and the brinkmanship begin
- £ is over 10% lower against the $ and €, its biggest fall for decades, meaning that nearly all imports are, as of now, 10% more expensive as the $ is the currency lots of non EU ones are pegged to. This includes food imports, you'll notice in the supermarket pretty soon. And of course all foreign travel is correspondingly more expensive. You will notice on your holidays.
- as the £ has fallen faster than the $ oil price, so fuel prices perversely going up for us, no one else
- our government and two major political parties have no effective leadership as a direct consequence of the referendum (ok, I'll concede one party didn't have much in this department already). Public confidence in our political class at an all time low.
- major investment programmes like LHR 3rd runway and trident replacement postponed. Others (HS2, Hinckley Point to follow). These things pump money into the private sector, which creates jobs.
- UK credit rating downgraded meaning government borrowing will be more expensive, meaning a combination of tax rises heavier austerity measures or heavier national debt. Or all 3.
- attempt to get government current account into surplus by 2020 abandoned
- UK government Gilt Yields cut by 8% which will have an major effect on pension funds and pension fund deficits
- the governing party in Scotland and power sharing partner in Northern Ireland actively considering ways to leave the UK. Even if you don't care the continued uncertainty and disruption if one or both happens will be extremely damaging
- a small minority of racist cretins feel, for some reason, emboldened to abuse mainly women children and the elderly of different backgrounds. Not the fault of the result or representative of all leave voters, but the result made something click in these tiny minds. Pretty adverse for the victims.
Enough? These things may not be directly affecting you or me today, and we may be well off enough to shrug them off anyway. But many others, on low fixed or uncertain incomes will suffer greatly with even tiny price rises. And all these things have happened. Hopefully some are reversible.
We were warned about much of this stuff but it was written off as scaremongering by corrupt experts. I think it would be very foolish to deny what has happened already or downplay what could happen over the next weeks and months in an effort to convince ourselves we have made the right decision. We need to take it all on board and factor it into what kind of country we want to be and what kind of relationships we want to have with our neighbours.
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