• Hard Brexit: Questions and Answers.

      1 comment

    Much has been talked and written about on the subject of Brexit and a “hard” or “soft” Brexit.

    As the politicians in charge of the country appear to be sailing the ship of state over the political equivalent of the Niagara Falls many ask: “Why?”

    The answers of course are many for each will have his or her own reasons for doing so. For the majority of UKIP members many do not fear a “Hard Brexit” in fact many welcome it! “The harder the better!” many would declare. Many argued for the hardest of hard Brexits: Ignore the Article 50 Brexit process and undertake a unilateral repeal of the ECA 1972 and have done with the EU!

    These good patriotic folk genuinely feel that the UK would gain from this – not loose.

    Working on the basis that a Hard Brexit will result in severe economic consequences, why would anybody wish for such?

    Let us consider the following hypothetical scenario:

    The UK Brexits with no deal. There is severe logistical and economic disruption. Sterling crashes. The FTSE tanks. The shares of many major UK PLCs (Lloyds Bank, BAT, AstraZeneca, SSE) fall – massively. The government (if it can be called that) falls and a General Election is called. The Liberal Democrats are the largest party. They form a government supported by pro-Remain Labour MPs and of course the Remainiac SNP! The EU offers an “Emergency re-entry” into the EU. The price? Entry into the Eurozone!

    The result? A second referendum. The UK re-entering the UK and entering the Eurozone. Austerity!

    Suppose this was to take place over 3 months.

    Shares in major FTSE 100 companies which will have crashed to very low levels will rapidly climb back. After a couple of years they will have recovered to Pre crash levels. Those who purchased during the crash will reap huge rewards!
    The advantage to capitalists of Eurozone membership is that the UK’s debt crisis (GOTO: http://www.nationaldebtclock.co.uk/) can be tackled as the politicians will have handed authority over it to the unelected Eurozone technocrats!
    Doctor North has written an excellent blogpost today. GOTO: http://eureferendum.com/blogview.aspx?blogno=86556

    Write a comment