Limelight Forums

(Jun 27, 2016, 05:46 PM)Void Wrote: [ -> ]Well... Most likely the EU will now say "Fuck you England" and doest want to have anything to do with England anymore, to show what happens to countries who leave the EU

Btw, are you fucking serious British People ? You got the most advantages so you come into the EU, you got to be kidding me ?

Well you clearly know nothing about the topic.

Firstly why only England? Or did you mean the UK as a whole? They are different if you did not know.

Secondly, why would the EU, as a trading bloc economy, want to cease trade and cooperation with one of it's biggest partners? Informal discussions with France amongst other nations have suggested that the terms of our trade will not be any different. (Note that many of the EU countries proping up the EU, France Italy, Spain, Germany to a lesser extent, are all facing financial hardship.

Let's take France as a case study: France is stuck in a debt trap of current. They have borrowed lots of money, and now their GDP isn't growing fast enough to pay it off properly. (currently circa 0.3%.) This means that as a nation, France can't afford to loose more money. 

We, as of 2011 (most recent data), traded with many countries around the world, and as the country with the 5th largest GDP in the world, our 3rd biggest partner individually was France. France was also the second biggest exporter to the UK. *note that the country whom imports the most is Germany, too.*

So what does this tell us? For the nations in which the EU was previously propped up on, it's crucial to them to maintain, or increase their GDP. In putting up prices of tariffs and taxs and such, all it will do is reduce trade, and thus reducing their own GDP. It's not going to happen for the most part.

Congrats UK, hopefully Sweden will follow your lead soon.

(Jun 25, 2016, 08:59 AM)jarz Wrote: [ -> ]When people say the UK will never recover.

What are you on about.

Currency =/= stock market. Different volatility and the pound will take time to recover. If it remains low that can benefit manufacturing - low end may be outsourced to China but we do lots of high stuff, such as aerospace. The pound is also a world reserve currency so it'll be very, very hard to completely ruin as there's global interest in maintaining a reasonably strong pound.

Currency isn't as telling as an index such as FTSE100.

Index can show the economic climate of the location in question, in this case would be UK as obviously FTSE is the top 100 stocks on the LSE.

Currencies as mentioned above are very volatile generally (although nothing compared to the last couple of weeks on GBP/USD). Just because a currency has gone down doesn't actually mean the economy has lost value. If you know anything about financial markets, one of the first things you learn is that the price is often based off of speculation. This applies to the value of GBP too. (Although it is regulated to a certain degree.) So of course the value of Sterlin will fall, as speculation & uncertainty make it less valuable. Indexes in the other hand tend to be based on company performance as obviously in the FTSE100, there's 100 companies. If say 10% of those companies make a loss in the next quarter, and 50% make a profit whilst the remainder just float, the price of the index would still likely increase as the factors which affect the price are diversified. On currency it's more complicated.

So one can deduce that the UK top 100 companies have been relatively unaffected (so far) which is why the index price has been relatively unaffected.

In all honesty it's not the best indicator of market conditions thought, to be oxymoronic. Neither is the value of currency. official figures such as unemployment rates, average salary & other demographic measurements (e.g HDI) are often the most valuable.

(Jun 28, 2016, 01:25 PM)Jono Wrote: [ -> ]In all honesty it's not the best indicator of market conditions thought, to be oxymoronic. Neither is the value of currency. official figures such as unemployment rates, average salary & other demographic measurements (e.g HDI) are often the most valuable.

Can't agree with you more here.
Though the currency is a big participant in international trading.