Agree that will cause inflation and that it did go low, but why always doom and gloom, why nothing positive?
The pound is already picking up some of its losses against the $ and € (agreed, it is going slowly) but at least it is going in the right direction, and this is only the first day.
Because it's going to be years until we know of the outcome and therefore years before we know what, if any, part of it will be positive.
The negative impact of Brexit is already well-established. The positive outcomes are currently up in the air.
My pessimism is based on 4 simple facts:
1). Economic uncertainty is not a good thing.
2). Trade uncertainty is not a good thing.
3). A giant fall in the Pound is not a good thing.
4). The EU will not make life easy for us because they want to show other members why choosing to leave is not a good idea. Call it vindictive if you want, but that is what will happen. Let's all be honest here folks, there is one way the EU could ensure that no other member dare even thinks of leaving: if the UK ends up on its knees.
The Pound will pick up a little bit, but you just have to look at the overall environment to see why it's going to struggle. It will take years not only to negotiate our exit, but to also negotiate new trade deals with the world. Only the most daring traders and investors will come in during this time to gamble on everything turning out fine. The rest will either short against the Pound or simply steer clear.
One thing for certain is that this will continue until there is a formal agreement - signed, sealed and delivered - on exactly what the UK's post-EU relationship with Europe and the world is going to look like.
Any perceived positives at this stage are also fraught with doubt:
Make our own trade agreements - are they actually going to be any better than they are now, or even equally favourable at all?
Control our own laws - what will the Government now do with workers' rights and our human rights?
Control immigration - how much will it really go down? Will there be an unprecedented surge of migrants entering the UK in the next two years to settle before the door closes? A gradual growth in immigration whilst the economy expands along with it is fine. A giant surge all at the same time when the economy is in a recession is not.
The negatives are already visible for all to see. The positives, meanwhile, are still highly uncertain and come with the distinct possibility that they may turn out to be negatives in many respects as well.