24th June 2016. 7 am: I wake up with a startle; my husband calling my name. Bublee! Wake up! Britain voted to LEAVE the EU. Still sitting up in bed gathering myself and staring at the vanilla wall in front, my first thoughts were- O-M-G! What have we done! I lend my glare briefly to my husband who sat at the edge of the bed checking the news on his phone. It felt like an end of an era. What will happen now? Long term economic crisis let alone the immediate financial consequences. I mean, Britain doesn’t even own most of its water. How does it justify to survive independently?
(According to the guardian- In 2008, green group the WWF warned that the UK has become the sixth largest net importer of water in the world.)
In my unconscious competence mode, I get my 8 year old ready for school but my mind flew everywhere. What will happen to the market now? 3 days ago, Godfather George Soros did say that the pound will nose-dive like it did during his 1992 Black Wednesday. No, it did worse today. The pound decreased its value just like it did in 1985. The only thing good about the 80’s was the music and that doesn’t come back again with this crisis. Sad!
Just then my 3 year old woke up and started crying longing for my attention. Gosh! I could almost relate to the cacophony and the mayhem happening at the trading floor now. This news has cost the economy and big companies a loss of more than £100 Billion. Second, the UK now has a very large current account deficit much larger, relatively, than in 1992 or 2008. In fact Britain is more dependent on foreign capital today than at any point of time in history.
In the words of Godfather Soros: Too many believe that a vote to leave the EU will have no effect on their personal financial position. This is wishful thinking. It would have at least one very clear and immediate effect that will touch every household: the value of the pound would decline. The Bank of England and the International Monetary Fund predict an income loss of £3,000 to £5,000 annually per family resulting in big losses of purchasing power for British households.
Short term crisis… Perhaps! I turn on the tele to see The Prime Minister resign. I sure will miss his charming face. And if Mr. Simpsons (They call him Nigel in the political arena) comes into power then .. I will attempt to write a whole new blog..provided he still keeps an immigrant like me in the country.
The only silver lining is, due to the British Pound being so low in value now, exports will go up and this will benefit the small and medium scale business owners. Perhaps Bank Of England might even lower their interest rate? Pah! Another wishful thinking!
The EU Exit would make some very rich but will leave most voters considerably poorer. Well, they don’t lie when they say, every depression and recession create more Millionaires. The time is right if you want to do something on your own to supplement your home/business income. Instead of moaning, whining and panicking, consider starting a new business. I consider today as a BLACK FRIDAY for the economy. For the common soul, this is not to be confused with the one where you run to the shops for a sale.
#BrexitVote #EURefResults #EURef
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