For good or for ill, the United Kingdom has decided to sail alone on the Atlantic's waters.
The citizens of the United Kingdom were asked if they wished to exit or remain in the European Union, and they voted BREXIT
This has caused a bit of a fuss and also the seemingly near total collapse of the British political system, with potentially far reaching consequences for the rest of Europe, the rest of the West and the rest of World. They haven't officially started to leave yet, but all it needs is for the Prime Minister to announce that Article 50 (the process a country uses to leave the EU) has been invoked and a 2 year countdown will start before the UK is booted out. Who're the main factions in this drama?David Cameron, current sitting Prime Minister of the United Kingdom and leader of the Conservative Party
Cameron gave us the referendum. He had hoped that it would be a final answer to the European question, one that has dogged his party for generations. It was an answer, it was pretty final, it was not the one he wanted.
He has taken one look at this hot mess and basically promised to put out immediate fires and then peace the fuck out. He leaves his post politically relatively popular because he's shown a remarkable ability to know when to call it quits. His replacement is expected to be...The Blonde Bombshell - Boris Johnson and the (relatively moderate) leavers
Boris, technically the most popular politician in the United Kingdom, led the Leave campaign. He won. We don't really think he actually expected to win. He now needs to A) Actually replace Cameron and
fix this hot mess. He is doing everything he can to moderate between the two sides (now he's actually won) and stop things getting worse.
A lot of people blame him for what happened, but they're pretty relieved he's in charge and not...Farage, leader of the United Kingdom Independence Party and the not so moderate leavers
Farage has made it his political mission over the last couple of decades to bring us out of the EU. He has succeeded - And now it looks like everyone else is just going to freeze him out of all the meetings. Could this be the end of his political career now that his purpose is complete? Not exactly, as he now has his eyes set on the parliamentary seats currently owned by...Comrade Corbyn, leader of the Labour Party
A pretty decent bloke who managed to become the leader of the opposition by promising a kinder, gentler politics. Seen as down to earth but controversial due to having beliefs of a stronger tone then the leader of a major political party is seen to supposed to have. He's historically been a eurosceptic, but campaigned for the Remain side in this referendum. He's got a lot to do to get the Labour party back into fighting shape, starting out with defeating his nemesis...The Labour Party (Or at least the rest of its members of parliament)
They've not given Corbyn an easy ride so far. They believe that Corbyn's way of doing this appeals to the core of the Labour membership but is reviled by the voters they need to win over if they want to win another general election. There've been a number of smaller dramas but accusations that Corbyn secretly sabotaged their campaign to keep the UK in the EU due to his historical eurosceptic beliefs have led them to open revolt. While the knives are being drawn their northern holdings are being gobbled up by UKIP and...Nicola Sturgeon and the Scottish National Party
The SNP failed to break Scotland away from the Union last year. They're ready to have another crack at it, citing the fact that everything has gone to shit south of the Scottish border as one of the main reasons they should have a do over on their referendum. Because the other major parties are currently imploding they're relatively unchallenged in Scotland. The only other party that seems to be having an OK time is...Tim Farron's Liberal Democrats
Still working to get back the publics trust after they entered coalition with the conservative party in 2010, they're picking up steam because A) Their leadership is relentlessly committed to the EU and has promised to fight their way back in and
they haven't exploded yet, unlike the Tories and the Labour party.
There are countless other characters in this - Across the ocean the leadership of the EU is attempting to sever ties with the UK quickly before anyone else gets any funny ideas about leaving. Unfortunately for them the British referendum has highlighted that voters may love the principles of the EU, but the actual EU leadership are seen as grey, controlling and distant. You have Northern Ireland that faces the prospect of an actual border between it and the rest of the island. You have the Green Party who are probably doing something.
In the middle of all of this British voters are asking "What now?"
And the worrying thing is that no one actually knows
I've started this thread and will keep it going for roughly three pages before letting my successor take over and sort it out
Too many people mistook it for #Theremin which is a niche instrument at best
But perhaps for another time
I am genuinely struggling to keep track of everything going on in the big parties at the moment - I'd love to hear updates about what they're doing!
It dropped to the lowest it's been for 30 years more or less instantly after the results were announced.
So I'd say yes.
Sinn Fein (largest Irish Nationalist party) used NI's Remain vote as a call for a border poll and reunification. Leavie Secretary of State Theresa Villiers pooh poohed this, and was backed up by Arlene Foster of the DUP (largest Unionist party). Other than that we're just watching what's going on.
Really I think what NI does will be boxed in by what everyone else does. The key issue is that the Peace Process is based on the Good Friday Agreement, and that was based on the pretty reasonable assumption that the EU's legal framework would be around to help it. The single biggest issue is what becomes of the open border between NI and the Republic?
it has staggeringly affected the pound to a degree where you should really be paying attention
just look at it upside down
someone that doesn't understand economics all that well
does that literally mean that everyone in britain is 14% poorer than they were pre-Brexit
... but that would be assuming it's not going to drop further, and if the UK actually triggers Article 50 I think things might just get worse.
... as charity? because hello.
not ... immediately
but if it stays low prices of imported goods will start to rise, and export income will fall, and yeah people will be poorer in practical terms. Edit: there are things governments can do to stabilize these effects, but I'm not an economist so this is where I bow out.
Right now the crash is largely limited to businesses, but that's still considerable - any business that needs to transfer money or goods internationally is impacted by the pound drop right away. Which is a lot of them, especially in a small island nation with its own currency.
So ... kinda but not really but kinda?
My savings wouldn't get you terribly far but it might get you a few months of ramen and bananas, which I would be happy to provide.
(Are you still at the same address? I shall ship you a comfort box).
It mainly affects imports and exports - imports get more expensive and British goods are at the same time available on the world market for a lower price
Which can be a good thing for some economies! Except the UK has a huge trade deficit, especially with the rest of the EU
hahaha you are too lovely, I am for a month but theres no need at all, but you are the loveliest!
oh well I shall PM you for your address when I land in a country with a more reliable mail system, then.
Before this, inflation was incredibly low.
This then causes the pound to fall even more.
(Also this is me "paying attention". I didn't have access to the Internet for a week.)
When does all the good stuff from leaving start to happen?
Not really, but kind of.
Consider: Let's say a nice jacket made in the UK currently costs £100 to make, and an equivalent jacket made in the US costs $100 to make (note the "to make", there). When it comes time to set the price, the UK store sets the costs of the two jackets to be the same, let's say £110. Likewise, in the US, stores set the price of the jackets to be $110. So, in terms of jackets, assuming no taxes, there's really no difference if someone, no matter where they live, buys the one made in the UK or in the US.
Now, after the crash, the pound is considered a lot less desirable.
This means that, for a person in the UK, the jacket made in the UK still costs £110, but now the jacket made in the US costs more in the UK, it'd shoot up to £150.
With this example, the UK isn't "poorer", because consumers can just buy the UK-made jacket and be exactly as well off as before. The issue is that the UK has a massive trade deficit, which means it imports a lot of goods, goods that probably don't have a UK-made equivalent. The price of all those goods is about to go up, and without a cheaper way to buy them, then yeah. People are, on aggregate, poorer than they were a week ago.
There is a bit of a balancing-out, where in the US, the reverse happens, and while the US made jacket still costs $110, the UK made jacket costs just $80. This means that consumers outside the UK are more likely to suddenly want to buy UK-made goods. But, again, big trade deficit means that there aren't as many UK-made goods out there as would be ideal to take advantage of such a situation.
I could buy the Scottish castle I want then, it's still for sale!
Unfortunately that castle will shortly be in another country where pounds are not legal tender.