ER

Moving, on and otherwise

Dear Reader,

As Glynsky pointed out here, it is time to move on. I am just afraid, you Brits aren’t ready.

Yesterday it was confirmed, David Cameron will not do anything. Besides blaming the EU for his mess. This time it is EU immigration policy, which he blames for the Brexit. Of course, it could not have been his fault. Even on his way out he is trying to blame others. At least he is consistent. Blaming the EU for UK problems like he did for what, a decade? Maybe you want to elect someone with a backbone and a brain next?

Yet, there is a real reason you cannot do much. Civil Service, now in charge of negotiating some 120 (!) new trade contracts, has twenty experts to do so. Yep, that is 20 to go through thousands of pages of just one major contract.

Unfortunately, while UK politicians are busy with power play, businesses are reacting. They cannot afford to wait for politicians to get their act together.

Imports traded in US Dollars became more expansive since Monday, because the GBP tanked. A friend in the UK was ordered by the American parent company to raise UK prices by 30%. And that is wholesale. Expect to see some nasty price increases at retail.

And another friend, working for the EU subsidiary of an American organization, was ordered to relocate EU headquarters from London to Bruxelles. I am afraid, many others will follow. Either because they have to, like the EU banking regulators and other EU bodies located in London. Or because they want to. We saw the same after 9/11. Many businesses took advantage of the atmosphere and left expensive NY for much cheaper New Jersey. Expect real estate prices to drop.

Brace yourself,

Engine Room

4 thoughts on “Moving, on and otherwise

  1. Typical politician, never their fault.
    Perhaps the result is good in the respect it is giving the biggest shake up in British politics for ages. They have all had it to good and now need to come up with some good ideas of how to get us out of the shit.
    Both main parties are in turmoil with no direction.
    We don’t seem to have the older statesmen anymore, they are all career politicians straight out of university.
    The problem was Britain was going no where with it’s present leaders in the EU. How we sort this out is beyond my payscale.

  2. Many British Citizens want the Real estate prices to drop as they cannot afford to buy a house, They do not realise that the Mortgage rates will have to go up.
    Greetings from Bologna.

  3. BALLS – that is it takes balls to make significant changes to things and we have shown that we have them. We always did.
    Won’t let it go Er will you!
    You’re all doom and gloom.
    Things are bound to react to this situation, including our internal politics as is evident. If people want to leave fine, go ahead.
    Let’s get back a bunch of other industries, like farming and fishing our own waters.
    It’s going to take 2 – 3 years to sort out by all accounts and no one knows what the climate will be like then. What goes up must come down and visa versa, so the markets will settle down and property will do the same. As Smiles says property prices have inflated rather too quickly here over the years and a steadying of this will be a good thing, although it might hit my business some what!
    A new political leadership might be good and Teressa May could turn out to be a refreshing change. There could be 3 women in power soon, Sturgeon, May and Clinton.
    We need to stick to our guns and move this exit on. Just watch who follows.

    • Dear Philippa,

      No doom, no gloom. Just a personal, factual report, how fast businesses are reacting to the announced Brexit. My guess was, the UK would have a few months. It does not.

      Ignoring reality and facts (your farming industry is heavily subsidized by the EU and your fishing grounds are very much empty) does not help.
      Empty talk, ignoring reality, and plain lies, that got the UK into this mess. The way out is through action, not more bullshitting.

      ER

Comments are closed.