Here we go again, politicians playing with words and with the fate of millions of citizens just to get a seat at a table. That was David Cameron play when he proposed a Brexit referendum without any hint whatsoever about how to implement it, in case the Leave won, and by the same standards the Brexiters likewise, who cares about the economy or the disruption it causes into businesses and citizens.
The Pound (GBP/USD) was trading around the $1.40 level by the time the referendum was held and economy was booming with very low unemployment, right now its closing in on the 2016/2017 low around the $1.20, which means investors are almost certain that leaving the European Union will weaken the British economy, by how much is the only real doubt.
Despite that, right now both candidates to succeed Theresa May at the Conservative Party helm are hardening their Brexit rhetoric, for political gains only, because neither have really explained properly what will be gain or lost by the decision to leave without a deal, or what will they do to minimize the collateral damages to citizens and businesses, apart of course from the Bank of England card, in the form of lower interest rates and assets buying, which will cause more Pound devaluation.
Photo by Muzammil Soorma.
