Thanks for all the comments on Charlie Morris” Brexit article over the weekend. I’ll republish some of your better responses tomorrow. In the meantime, the “Vote Leave” campaign reckons Britain sends the European Union around £1 billion per month to support “ever closer Union” on the Continent…
In a study released over the holiday, the “Vote Leave” group concluded that by the end of this year, Britain will have tipped over $500 billion into EU coffers. Some of that, around $157 billion, made it back in the form of “rebates”. Those rebates may get smaller as the EU gets larger and power powerful.
Aside from the cost of Union, there’s the cost of regulation. The study said the number of EU regulations passed since 1973, if printed out A4 paper, would build a stack higher than Nelson’s column. That’s the way you subdue a people.
Through red tape and regulation
Still, there is one legitimate fear a lot of readers have expressed about Brexit: what if it triggers a collapse in the pound? The worry is that capital flows to Britain will dry up under Brexit. This would exacerbate the current account and trade deficit. With capital inflows to finance the current account deficit, there is one and only direction for the pound to go: much lower.
I’ve take up that issue with Charlie. He’s coming in the office tomorrow to discuss it. We’re also talking oil, gold, and asset allocation strategies for 2016. Stay tuned for more.
Category: Brexit